Hello - i was searching this forum (probably not hard enough) and i couldn't find specific answers so i thought to ask: Every fornight i get a salary which i pretty much deposit straight into my offset account. I live off the credit card that i pay every month - i withdraw and pay from my offset account as well. Say, i have a investment property and i get rent of 24k/yr. IO loan and total expense is 24k/yr as well. So that means all my rental income pays for the expense. If down the track, i use 1500 for my gf's b**b job, i might end up paying 24200 that year for interest but since it went from my offset account(which is like my saving) i can claim that as a expense. so my question is how does this really work? Does that mean i can use money from my offset account and whatever interest i pay at the end of the year, i will claim? I ask this because at the moment as soon as i get my salary, i transfer to my offset account and pretty much live off the offset for repayments etc. Apologies if its a really dumb question but its just it doesn't make sense to me.