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I'm convinced, it sounds fab! The ruling sounds broad enough that I'd be happy to rely on it, based on that ruling and the PDS.

I'm happy to concede. :) But as this is such an old ruling, I would have thought that our resident brokers would be aware of it... Rolf? Peter? Were you unaware of this ruling, or do you have concerns that the product falls foul of the ATO despite this ruling? :confused:

A true offset - separate account - would allow you to claim a deduction on all interest. This product appears to fall foul of ATO rules and contaminate your investment loan, meaning that the deductibility of interest is compromised. I totally get that there's no difference in interest paid...

euro73, I've been distracted. :o Ratebusters' position is really irrelevant. The important thing for anybody to know from this thread is that the Ratebusters "redraw offset" is not a separate account, and using it in the recommended manner (depositing all salary into loan account, redrawing...

Doesn't that bolster our suspicions? A ruling is easily obtained, and would be a promotion point for the product. Surely the only reason a lender wouldn't obtain a ruling on a questionable product is because they suspect that they won't like the answer.

Yes, it is pedantic, because the ATO are pedantic! Can you confirm, euro73, that the ATO has made a ruling that this product is deductible as you propose? If not, then why do you think that this would be treated as an offset rather than a LOC by the ATO?

If you're talking about the Rate Busters Fightback product, there are two things setting off alarm bells for me in Rate Busters' own documentation (which lead me to strongly believe that the many who claim this product would fall foul of the ATO are correct): 1) the offset account is called a...

Rolf's right; doing it that way contaminates your loan and makes it a positively hideous product for IP debt. Ugh!

Such good advice, it bears repeating. (Though we seem to be repeating this a lot, don't we? ;)) I think that people value dollars variably. A dollar of opportunity cost seems to be only worth about 5c (or even less) to most people. (:confused:) A dollar received from the Government (eg...