Absolutely !!
Its a way of recycling debt from deductible to non-deductible. Its precisely the "refinancing principle" that is common to a unit trust and no other entity. The duty exemption in Vic is what makes it viable. (And in most states make a redemption of units and a reissue not...
Terry's 100% correct. Under the CGT rules you are deemed to acquire at market value anyway. So why not give substance to it and actually acquire her interest at market value using borrowed funds ?? It refreshes the loan.. Luckily in Vic they allow this without duty.
CGT - Your wife's share...