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Some people put money into a loan in order to save interest. This is repaying the loan. When that money is redrawn it is considered new borrowings for tax purposes. Because of this you should never temporarily park money into a loan which is deductible. This is because when you redraw the money later you will potentially lose the deductions on that portion of the loan resulting in paying more tax.

The better alternative would be to park the money into an offset account attached to the investment loan so that the loan itself will not be reduced.

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