Hi, After reading virtually all posts on this topic, I am still a bit confused on how to implement Debt recycle strategy on a monthly/quarterly basis. My situation: PPOR $500k loan balance. Currently, I can make about $1-1.5k excess contribution into my redraw monthly. My idea: Split #1 -- cash savings ($50k); Split #2 -- investment only; Split #3: everything else, like a transaction acc. Q1: What is the most efficient way to structure the size of #2 and #3? (No intention to use LOC, only Redraw.) Q2: Say #2 investment account is 100k. I transferred $5k into this account and subsequently invested in shares. A month later, I can make a further $3k investment from this $100k redraw facility. Is $3k considered as a new investment or repayment of the previous $5k? P.S. I am ok to calculate the interest accrued manually on Excel when it comes to the tax time.
How do you have a split that is cash savings? You can't contribute to redraw. It sounds like you are just paying down the loan. Better to store excess cash in an offset then split then pay it down then reborrow to invest Q2 you would be contaminating the loan if you did this. Throwing money away. See my. Tax tip on this from a few months ago. And no you cannot just tracking things on excel Get some specific tax advice as you are making things worse for yourself
