Liam Shorte

Yes, that's exactly my reading of it.

Do you think that that one's going to get through Parliament?

I think it will because it's too hard for them to try and work around it.

So it's bringing up strategies now that on your home, should you be paying extra payments or should you just put them in your offset account in case you do?

change houses, because if it's in the offset account, it's your money and the loan balance is outstanding.

And that means that if it does become your investment property, all of that loan balance becomes

negatively geared.

Whereas if you're making extra payments off the loan and they're going into redraw, you can only get a deduction for that redraw if it's used for investment purposes.

So you're going to find a lot more people looking at using offset accounts, especially we know for the younger generation, they're probably going to move three or four times in their life.

for work and everything.

So it'll make more sense to just pay the principal interest basic and any extra payments stored in the offset account.

And then if you do go to move to another property, you'll use the offset money towards the purchase of new property, which will leave you with the maximum deductible

loan on your old property.

I think Treasury ran the figures and they found that they wouldn't have raised enough by doing that.

And that's plain and simple.

If they're going to make a big move like this, it had to be a bold one.

Otherwise, they were going to cop all the grief for little return.

They're an even better option going forward.

We've always used them as a stopgap between 55 and 60 for people who wanted to retire younger, who are on a high income at the moment.

It was a great way of locking money away for 10 years and funding that period between 55 and 60.