Thanks for the responses – much appreciated.

Intend to change to IO immediately. With the re-draw, am presuming if we were take out the 60k for other purposes, we could still only claim a tax deduction of Int on the current $300k, not the new bal of $360k.

The advice on the ltd co and 1 director is excellent. As the business will take time to grow (i suspect v low sales in first 2 years as we establish a name/brand) I was thinking of starting it as a sole trader (partner's name) to keep it simple and avoid co set up and annual admin fees/requirements for a couple of years (we don't need to borrow finance initially neither), then when sales are at a decent level convert to pty ltd for the liability protection (with both as shareholder's, wife as only director). Any obvious problems with this?

Thanks

Ryan