If you haven't paid this into an offset you will be redrawing money on your mortgage not for the purpose of investment but for buying a new PPOR so there will be no deductibility on the interest on the redrawn monies.
You seem to be discontented with the answers you have got from your...
This issue gets raised regularly in the forums. The problem you have is the purpose for which you are using the money - for interest to be deductible the borowing must be for the purpose of gaining assessable income. The ATO isnot concerned with which property is used as security for the loan...
