IP to temp PPOR

[INVSTOR]

I can't quite get my head around options, PPOR rules, taxation etc.
We currently have no PPOR and am living in IP.
To reduce expenses I've set up two IP loans as offset accounts and using PPOR proceeds to offset two properties, one of which we are residing in.
I'm not sure exactly how long we'll be living here do for now I'm assuming around a year, give or take.
The WA IP land tax value is assessed at $750,000.
It is assessed as at 30th June each year so I'm quite sure we will still be here then.
Should I advise department this is currently my PPOR?
It's 100% in hubby's name.

 

[Terry_w]

So you are living in your own property? If so it isn't an IP now but may have been before.

I don't know what this mean:

To reduce expenses I've set up two IP loans as offset accounts and using PPOR proceeds to offset two properties, one of which we are residing in.

But it worries me.

Yes you should advise State Revenue that you are living in the place if you don't want to be sent a land tax assessment.

 

[INVSTOR]

So you are living in your own property? If so it isn't an IP now but may have been before.

I don't know what this mean:

But it worries me.

Yes you should advise State Revenue that you are living in the place if you don't want to be sent a land tax assessment.

We currently have $400,000 cash currently sitting in a savings account.

We've set up two loans a week ago that have two seperate offset accounts. One loan is for $200,000 - the house we are currently living in. The other is a $425,000 loan in another state that I was going to put the remaining $200,000 cash against.
I haven't transferred the funds from savings account yet. Is this not the best thing to do? The other option I was thinking of would be to put in short term term deposits in lowest income earner name (me) and keep re-investing interest.

 

[Terry_w]

We currently have $400,000 cash currently sitting in a savings account.

We've set up two loans a week ago that have two seperate offset accounts. One loan is for $200,000 - the house we are currently living in. The other is a $425,000 loan in another state that I was going to put the remaining $200,000 cash against.
I haven't transferred the funds from savings account yet. Is this not the best thing to do? The other option I was thinking of would be to put in short term term deposits in lowest income earner name (me) and keep re-investing interest.

I was worried that you were borrowing money and parking it in the offset accounts. If the cash is not borrowed then what you have described seems fine. But do the sums and work out if it would be more effective to do the savings account in your name.

 

[INVSTOR]

I was worried that you were borrowing money and parking it in the offset accounts. If the cash is not borrowed then what you have described seems fine. But do the sums and work out if it would be more effective to do the savings account in your name.

Great, thanks, will do!

 

[D.T.]

I was worried that you were borrowing money and parking it in the offset accounts.

https://www.ato.gov.au/rba/content/?ffi=/misc/rba/content/57920.htm

1. Are you entitled to a deduction for 100% of the interest expenses incurred on an income producing amount, drawn down on a loan, where the balance is deposited in a mortgage offset account which is linked to the loan?

ATO: Yes.

 

[Terry_w]

https://www.ato.gov.au/rba/content/?ffi=/misc/rba/content/57920.htm

This is a private ruling and cannot be relied upon by anyone other than the applicant. But it can be used as a guide. But it only covers half the story, what if the poster had drawn money down and mixed non borrowed money with it?