You are either going to have to forego that tiny bit of interest diferential between the LOC and term loan offset, or get rid of the LOC and just set up term loans with offset.
For lending and interest calculation purposes there is no diference between LOC and offset. For tax purposes, a LOC is harder to manage, in that the nature of the loan changes if you draw funds for a diferent purpose to that intended.
In the real world, this decision is usually dependant on the type of set up the bank has. For instance CBA's offset is not transactional, so a LOC for personal use is easier to manage. CBA's LOC is a slightly higher rate.
There, I think I added something!