“For non-deductible home loan portion, an offset is generally preferred over relying on a redraw precisely because it avoids any risk of mixing funds”

“Offset account… loan limit minus what you've got in your offset account… $500,000 loan, $100,000 in savings… charged interest on $400,000”

“Loan split… $500,000 non-deductible home loan… put $100,000 into the loan, split it into $400,000 or $100,000 and then go invest $100,000 in shares”

“Different sub-accounts under the same loan facility, each with its own statement and balance… loan contamination… ATO can disallow deductions”

“Someone who chooses interest-only on the investment split usually maximises the deductible interest and directs all surplus… towards a non-deductible home loan”