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Picture Book · Debt recycling

Purpose counts

Story pages

A man in his mid forties with dark curly hair riding a bicycle along a riverside path
Meet Marco. He's 45 and has a split home loan.
A magnifying glass resting on a wooden table beside a seashell
The ATO looks at what borrowed money is actually used for, not what the loan is called.
A tidy row of small potted herbs growing on a balcony rail
If borrowed money buys shares or other investments that earn income, the interest can be deductible.
A family car parked under a carport beside a garden bed
If it pays for a car, a holiday or the home itself, the interest is private and not deductible.
An empty bird feeder hanging from a tree branch
If an investment only earns exempt income, the interest can't be claimed.
A man in his mid forties sorting papers into two neat piles on a desk
Marco keeps every investment borrowing clearly separate from everyday spending.

The end

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General advice warning. This picture book is general information only. It does not take into account your objectives, financial situation or needs, and it is not personal advice. Rules and thresholds change. Before acting, consider whether it is right for you, read any relevant Product Disclosure Statement and our Financial Services Guide, and seek personal advice. Past performance is not a reliable indicator of future performance.

Information as at 27 October 2026. Sources:

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