Restructure loan or not

Hi

I would probably prefer to see the LOC funds drawn down into the offset account and the monthly interest come out from there.
Just some finer point re ATO. 
If my wages and all my personal bills are paid from this OFFSET account and also my rents and my investment properties bills are paid from the same account  Isnt this then mixed if i draw down the INVESTMENT  LOC amount into the OFFSET account.  The draw down would not be for investment purposes….

For the purpose of discussion if i kept my PPOR as is and stayed would i then would this set up require 2 offset accounts one for PPOR and one for INVESTMENT PROPERTY.

Am i missing something here?

Cheers
SG

QLDS007

I would probably prefer to see the LOC funds drawn down into the offset account and the monthly interest come out from there.

OK i am still not sure here i understand what you are saying but i getting lost with the above as you outlined previously.  This is how i am reading you:

SAVINGS OFFSET ACCOUNT LINKED TO PERSONAL P& I …..is the main engine so to speak.WAGES RENT ALL BILLS PERSONAL AND INVESTMENT ARE PAID FROM HERE.

THE PPOR NOW IP  LOAN and INVESTMENT LOANS ARE PAID FROM OFFSET.

THE P& I PAYMENTS ALSO COME FROM OFFSET IF ANY

THE LOC IS WHERE I AM STUCK IN THE ATO CONSDERATIONS..

.IF I DRAW DOWN AS YOU SUGGEST THE INVESTMENT LOC AND PARK THE FUNDS IN THE OFFSET ACCOUNT THEN THE INTEREST ON THE LOC WOULD POSSIBLY NOT BE DEDUCTIBLE AS I HAVE USED THE FUNDS TO OFFSET PERSONAL DEBT THAT IS THE P& i LOAN.

THE INTEREST THAT I AM CONCERNED ABOUT IS NOT THE ONE THAT IS BEING PAID TO ME AS THERE IS NONE IT IS THE INTEREST THAT IS INCURRED IN THE LOC DRAWING DOWN TO OFFSET PERSONAL DEBT.

HOPE THAT MAKES SENSE.

CHEERS
SG

Hi Terry

I have heard of that case myself but the name escapes me.  This is my thoughts also in regards to drawing down LOC investment funds to park in savings account offsetting a Loan for personal use.

This is how i read QLDs007 reply in the draw down that was explained into P&I loan.

Cheers
SG

Hi thanks for the comments,

Their attitude was as long as the funds were drawn down and intended for investment and could clearly be seen to be used for investment they could be parked with non investment funds short term and certainly would not be contaminated.

Don't know if i would be comfortable with this unless it was crystal clear. 

If you did this and the ATO did an audit they would ask why you placed these funds in this account etc. 

So you say just parked the funds from my INV LOC into OFFSET account  wating for an investment to come along.  I also am claiming the interest on the LOC that i have drawn down.   Meanwhile this has offset my personal use interest  I am not sure they would accept this explanation.

Also what is SHORT TERM. 

Cheers
SG