Interest deductibility - credit card and equity loan

Let's say I have a $1000 expense relating to a development (deposit for architect, for example). The development is being funded by an equity loan, borrowed funds are in offset account.

I also have a credit card with reward points, so I want to pay the expense with my credit card, and then pay the credit card off with the equity loan.

The credit card is mixed use, for personal use as well.

If the credit card balance is 0, ie fully paid off before paying for the expense, and is immediately paid down from the equity loan to bring the balance back to 0, would the interest in the equity loan still be deductible for this expense?

Also assuming that the development when completed will be retained and rented out

 

could be.

See
Tax Tip 12: Credit Cards and Tax Issues https://propertychat.com.au/community/threads/tax-tip-12-credit-cards-and-tax-issues.2614/

 

Thanks Terry, I should have known you already had a tip on this. Cheers!