What about selling one and prepaying the interest on another.
It may be possible to borrow to prepay the interest and this could have 2 benefits:
1. Reduces your taxable income by increasing deductions which will help reduce the CGT; and
2. It may assist in allowing you to capitalise interest as it looks less like a scheme to save tax, especially if you do not have cash avalaible to prepay interest. maybe do this before you sell the other one and receive the cash.
Get some legal and tax advice first.
It may be possible to borrow to prepay the interest and this could have 2 benefits:
1. Reduces your taxable income by increasing deductions which will help reduce the CGT; and
2. It may assist in allowing you to capitalise interest as it looks less like a scheme to save tax, especially if you do not have cash avalaible to prepay interest. maybe do this before you sell the other one and receive the cash.
Get some legal and tax advice first.