So a friend of mine just brought this up with his accountant and raised my eyebrows a little in positivity. He has his PPOR fully paid off. He has since drawn down funds on his PPOR and used it for deposits/costs etc for his IP's. The lenders require his home to be insured for security. Does this make 100% of his home building insurance tax deductable? In North Qld this can be quite significant.