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Sell to take profits, pay down non deductible debt and borrow = converting non deductible into deductible.

This is a great debt recycling strategy and what I advise clients. you can always wait for a bot of cash to build up and then buy some more shares - paying down the loan and reborrowing first or keeping cash in the offset and borrowing if you have the equity. I also periodically sell, pay down...

Excellent points Cliff.

A debt recycling strategy could be employed. Say you have a spare $10k you could use this to pay down your PPOR loan, reborrow it (ideally separate split), buy shares such as VAS, get dividends and use these dividends to pay off the PPOR debt even further. Interest on loan will be deductible...