Thanks Stumunro & L.A Aussie,

The information you posted helps me to join the dots but I still have 1 question remaining.

Tax deductions on redrawn interest. . . If I decide to draw down 50k from one of my IP's equity, can I still get a tax deduction on the additional interest that is attracted? If not my positive cash flow position could be turned negative very quickly and in extreme cases I could get stuck in a downward spiral of redrawing to supplement an ever increasing negative cash flow issue. This could end up with me having to sell all IP's and walk away with almost nothing.

Any opinions?