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You don't give me values or securities so I am guessing here e.g $800,000 value PPOR $400,000 loan (non deductible portion) IO or PI with offset attached. $240,000 for accessing equity. Make this a LOC. Use only for investments and never pay any money in other than the interest. Once...

This is the same as paying $1200 into an IO loan in which the interest is $1000. i.e. you are paying off principal. Another reason not to use the parking method - it is confusing to get your head around.

No - you are repeating the same mistakes again. Don't park money in a savings account if you can avoid it - and you can avoid it nearly always. I can't comment on the paying back of the extracted equity as your loan may already be mixed. In that case you would have refinance and split it into...

You only need to be concerned if you are borrowing money and parking it in an offset before later using it.

The problem is that you have mixed cash with borrowed money. This is like getting a bottle of milk, 200ML and putting in 20ML of coke. When you remove 20ML you can't say you have removed the coke - only 10% of the removed liquid may be coke. Not sure what you mean here, but it sounds...

Mortgage brokers cannot give tax advice (unless they are also tax agents or lawyers) so you can't really blame the broker. Most accountants don't understand deductibility of interest - but the amount of blame would depend on how you asked the question. ps. I have a draft book on deductibility...

Don't think of 'top up' but of 'borrowing'. You will be borrowing, say, $50,000 extra funds. Interest on these funds will only be deductible if the funds are used for investing or for business. If you are not going to use the funds now then you don't want to borrow them yet. You have 3 options...

You should not be borrowing and placing the borrowed money into a savings account. You run the risk of ruining deductibility like Devank. If you mix borrowed money with non borrowed you will be throwing good money away. Why not just use a LOC? Or a IO loan with redraw ability?

Sounds like you have mixed borrowed and non borrowed monies! You will need to apportion interest.