Hi,
I need to redraw about $20k from my PI loan to pay a strata levy that is going to be used for renovations in this property. I would like to be able to tranfer the redraw funds into my credit card, as I can use this to pay the Strata company and at the same time get reward points. Having read various threads on this site, I am a bit paranoid about contaminating the redraw by putting the money into an account that I also use for personal expenditure.
Do you think the tax dept would have a problem if the credit card balance was $0 prior to the transfer, and if I the exact sum that went into the c/card was immediately paid out of the account directly to the strata company, i.e. a creating a clear paper trail??Thanks…
what about paying with credit card first and then paying the credit card direct with redraw>?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
A redraw shouldnt effect the new investment should it? Unless you refinance with the original loan and use that money for invezting.
Can someone clarify?
Depends on you do it.
If you borrow money and place it in a savings account with other funds before using it then it is no longer borrowed money at the time you use it.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Ok so the money that is redraw have to be in a different account ie seperate from all other funds or can be use to pay off purchases to be 100% safe right?
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