Mortgage Interest Saver Account & Loan Account

[brig100]

Would anyone know of any tax implications if I setup a mortgage interest saver account connected to the investment property loan. I intend to place savings into the MISA account, probably around half of the loan. Even if it is legit, would it be of a disadvantage when doing the EOFY tax return ie less interest charged thereby affecting $ returned. Ta

 

[alexlee]

Less interest charged means you PAY less interest, you realise. The deduction is to claim back part of the interest you actually PAY. It's better to lose the deduction if you don't have to pay the interest at all, yes?
Alex

 

[Insan3]

As alexlee said... Unless you have PPOR debt or other non-deductible debt you can put it towards first.

It's all legit, you will just pay less Interest, which means less to declare. And if it -ve geared, you'll be reducing you gearing losses. No point in maximising your deductions unless you need to - still going to be out of pocket at least 50% after the return.....