Thanks for your advice and for replying Jamie.
Cheers,
Gats!

Thanks Terry. I started thinking that if the P+I rate they are offering me is the same as the IO rate then if I go P+I, I'm already paying down some debt. Therefore I thought that instead of going IO and making additional payments, if I go P+I and make additional payments then I would be even more ahead in debt reduction. I've commenced the switch from the CBA (today was just another reason to!) to NAB.
Catalyst, thanks for your input. I will reassess if the rent being charged is market rate.
Many thanks!
Cheers,
Gats!

Many thanks guys!
Cheers,
Gatsby!

Many thanks for the reply Terry and Jamie. I met with the CBA today and I have had the two properties discharged from being cross collateralised so that now each one stands alone. I went through the strategy that I outlined in my original post (throwing as much money into the redraw as I can while living on my credit card and paying it off in full on the due date) and the lender I spoke to didn't think that I would benefit anymore by having an offset account set up????
I have to wait a week or so until CBA process the two IP's from being cross collateralized. Also is there any merit in reducing the balance on the lower IP debt rather than the higher IP debt so that it's paying down quicker? Am I best to now take one property to another lender and are their better interest only rates than 6.66% which aren't loaded with fees, etc, that would make it unworthwile? 
I want to go with an offset account but will having an offset used as an all in one savings account cause tax implications? Terry I'm keen on the LOC suggestion? Any help much appreciated in advance!
Cheers,
Gatsby!  

Thanks for your reply Terry. The offer is for a minimum of 5 ATM's which costs $70k plus GST returning 20% or 20 cents per transaction, whichever is the greater ($70k x 20% = $1,167 per month).  Also it qualifies for Rudd's 50% tax deduction if purchased before the end of this year.
It really works best for people who are selling investment properties and have a large CGT. That's what my friend is doing who has sold four investment properties to pay down borrowed debt and cover his CGT bill by investing in them for a passive income cash stream.
It runs on a 5 year lease and it's a bit like commercial property in that the deployer of the machines covers all maintenance/repairs issues, etc.
The problem I have firstly is that banks aren't keen to lend against them and compared to investment property, there's no capital growth over time. I'd love to be able to borrow from a line of credit, etc and buy 10 or 15 to make it really worthwhile but you would still have the debt in say 10 years but with no capital growth in an asset (like investment properties) to offset this. Fifteen of these would replace a wage!
Frustratedly yours,
Gats!
 

Thanks Kenny and Karen. I didn't realise that . I'm with VicSuper and will check it out !
Cheers,
Gats!

Thanks to the above for replying to my question. PM incoming.
Cheers,
Gats!