Tax implications of refinancing available redraw into offset

 Author: YellowPotato(Taxicorn)Taxicorn

2 Apr 2025

What are the tax implications if I were to refinance my loan placing available redraw into an offset while maintaining the original loan amount?

• You would need to first work out how much of your original loan is still tied to the purchase of the property. [if maintaining the same total loan amount, the deductibility wouldn't change]

Is there any better way to now seperate my personal savings from my investment home loan?

• Once you worked it out the amounts for the original loan and for personal use loan. You are allowed to ask the bank to split the loan into those amounts to separate the uses. [paragraph 18]

You can read this ruling, TR 2000/2.

You may want to see a tax agent if you are struggling to understand.

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 Author: softkun123(Newbie)Newbie

11 Sept 2025

@YellowPotato My current bank does not allow split loans. In April 25 I put 300k into loan account from offset. Now in Oct 25 I want to purchase multiple investment properties.

If I redraw that 300K back into offset account for investment properties. Can this money be tax deductible?

If not whats alternative strategy to make it tax deductible?

I am getting different answers from accountants on this.

Your assistance would be great.

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