Hi all, There is a thread in the Investing Strategies section of the forum which mentions this, but I wanted to bring it into this section to ask the accountants what their opinion is of using the following strategy to help speed up the reduction of non tax deductible PPOR debt (ie. would the ATO have a problem with it?) The strategy: 1. pay all income including rental income into the PPOR loan 2. use a separate dedicated LOC to pay the monthly interest costs for an IP loan 3. use the same LOC to pay for all maintenance and IP costs each month 3. only use personal funds to pay the interest in the LOC each month ie. say the interest on the IP loan is $1000 per month and the monthly IP costs are $200. This would mean the LOC is being debited by $1200 every month to cover these expenses. Only the interest in the LOC is being paid for using personal funds (ie. assuming an interest rate of 7.5%, in month 1 only approx $7.50 would be paid using personal funds, leaving the difference of $1192.50 to pay down the PPOR loan). Obviously the LOC would be increasing by approx $1200 every month (the interest is tax deductible) and the PPOR loan should also be reducing by this amount every month. I have heard this strategy mentioned by various people, however just wondered what the opinion of the accountants is?