Today I found out something that I thought was interesting - no doubt this is old news to most. We currently have a home with an offset account. Let's say the home loan is $500K, and there is $100K in the offset account.
If I take out $50K from the offset account and purchase an income producing asset i.e. shares w/ dividends - then the interest for the $50K is a tax deductible expense, with the interest obviously being @ the home loan rate.
I phoned up the ATO to day and spoke to a consultant who verified this is perfectly legal to do.
Anyway - thought I would share my discovery.