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Redraw v Offset Account

Discussion in 'Introductions' started by whatup57, 19th Sep, 2010.

  1. whatup57

    whatup57 New Member

    Joined:
    19th Sep, 2010
    Posts:
    1
    Location:
    Ravensthorpe WA
    Hi first time user, not sure where this will end up but here goes.
    Redraw v Offset accounts.
    We don't have a PPOR loan but have a number of investment loans which have offset and redraw attached to them.
    I am told that if I redraw from our investment loan and pay personal debt then the intrest incured on the amount for the personal debt is not tax deductible, which is OK I understand that.
    I was then told that paying personal debt from our offset account was OK as the increased intrest on the loan linked to the offset would still be tax deductible.This advice was given by our accountant.

    If this is correct is it only because the offset is a seperate account and the redraw is mixed in with the loan.

    The end result is still the same with offset or redraw, you still increase or decrease the intrest bill .Thanks