The money in the offset account will just be for whatever deposit I need, say 60k on a 20% deposit on 300 k house.
I'd still need another loan to cover the balance of the purchase.
The bottom line seemed to be I can only use it for purchasing property and associated buying costs and nothing else.
Which is fine. I'll probably be able to buy 2 more houses this way before I tap it out.
Be careful - if its an IP then you want to "borrow" instead of use cash in order to maximise your tax deductibility. Unless you are planning to convert the current PPOR and upgrade to another PPOR.
I would clarify this point with your accountant.