All, A quick scenario. I think I know the answer, however is there a way that I can manage it better to make a gain ? See what you think Facts - 1 IP (owned 50/50 with my wife) , value is $1,000K, (original & current) loan is $450K, offset has $450K cash thus no net debt. Net rental 'profit' after all costs is $30K. - 1 PPR (owned 50/50 with my wife) , value $1,000K, loan is $250K, offset has $250K cash thus no net debt. - I work and my wage is well in to the 45% tax bracket. Wife does not work. - I dont want to buy another IP. Question Is it worthwhile taking the $450K out of the IP offset and investing it in my wifes name ? Costs = $450k * 8% (loan rate) = -$36K. Rental Income = $30K. Net Losses = -$6K (split 50/50) Wife: Gross return on investment = $450K * 6% (from fixed interest account NOT capital gain) = $27K. Rental loss = -$3K. Gain = $24K. Tax = $2700 ($24K - $6K the threshold = $18K * 0.15%) Final Gain = $21300. Me: Gross income goes down by $6K, I will get a tax refund of 6K x 45% = $2700. Combined after tax gain = $21300 + $2700 = $24000 Cost of borrowing = $36000 Result of scenario = $12000 losses So in short I make a loss if I negatively gear my property by taking cash out of the offset and letting my wife invest it, and share the losses from the negatively geared IP. Is there a way that I can use these assets and a legal tax management strategy to gain from the equity available in the properties ? Gunnerguy.