Thanks for your advice.
My accountant has also confirmed,” that in Australia, the interest on borrowings are tax deductible only to the extent that the purpose of the borrowings are tax deductible”
I came across the concept from a UK based Property website, where it appears to be possible to borrow up to the value at the time of letting and use the cash any way you want, and benefit from tax relief.
Sounds too good to be true.