Similar to payment done through offset account issue: Situation: I have fixed IO loan for PPOR with Offset account. Offset has 160K available. Loan 500K Loan feature: Extra payment up to 20k pa only Redraw available. Now I want to buy IP and need 80k for deposit. I will pay 20k to Loan and redraw next day and transfer to broker (loan amount back to 500k) Deposit 20k to loan again, redraw and transfer to broker Deposit 20k to loan again, redraw and transfer to broker Deposit 20k to loan again redraw and transfer to broker So now I have paid 80K to broker directly from my loan account. Question: Is this loan 80k could be used for tax deductible purpose? What do you say guys? experts?