Hi All Long time follower of ss but first time poster I have read a number of posts in relation to this topic already and am somewhat so apologies in advance... My simplified understanding is as below…I would be grateful if someone can please shed light in respect to tax deductibility… “Irrespective of whether the property is a PPOR or IP, you should ALWAYS in the first instance, put surplus savings, say $100k, into an offset account (attached to the loan). And when you want to draw on the $100k savings, if it is for 1. Personal use, then there’s nothing to do, ie If it’s a PPOR the loan is non-tax deductable anyway If it’s a IP the loan is still 100% tax deductable as the savings have not been contaminated within the offset account 2. Investment purposes, then If it’s a PPOR, then its best to draw the $100k savings from the offset to repay the loan down by $100k and then redraw the funds out of the loan to use to buy an IP (loan increases by $100k again) ie the redraw part of the loan $100k now becomes tax deductable for the next IP If it’s a IP, then there’s nothing to do because you’ve already claimed 100% tax deductibility on the loan So it doesn’t matter if the PPOR becomes IP and then becomes PPOR again or vice versa, because by using an offset account for the surplus savings provides flexibility in what the ‘savings’ eventually get used for (personal = no tax deduction, investment = tax deduction).” Any comments would be much appreciated! Thanks!