One page of do's and don'ts to keep next to your banking app. A single private redraw from an investment split can mix two purposes in one account.
Home › Resources › Redraw Contamination Card
Contamination happens when deductible investment borrowing and private money mix in one loan account. Once mixed, the interest generally has to be apportioned for as long as the loan runs, and the split rarely returns to clean.
The card turns the rules from our guide to the redraw contamination trap into a short list you can print or save to your phone. Share it with anyone who has access to the loan.
The easiest protection is structural. We build separate loan splits so the clean path is also the easy one.
Alex can look at how your loan is set up and tell you what would need to change. Free, no-obligation call, by phone or video.
Request a call with Alex →Sometimes, partly. A common repair is refinancing the mixed loan into new splits based on an apportionment your accountant calculates, so future borrowing stays clean. The mixed period still has to be untangled for past returns, and a contaminated split rarely returns to a fully clean position.
No, but it creates no deductible debt either. Offset money is your own savings, so spending it is not borrowing. To create deductible debt, the cash first pays down a split, which is then drawn to invest. Your tax agent confirms the treatment for your situation.
How one deposit into the wrong loan mixes two purposes.
Read more → GUIDEThe structural errors that can void your deduction.
Read more → RESOURCERecord every draw so the trail stays clean.
Read more →
1. Arranged a loan when our small business situation made it difficult to qualify.
2. Met requirements to have funding available by a specified date.
3. Understood my needs to setup debt recycling to allow tax structuring.
4. Communicated well throughout.
I would use their services again.
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Alex and Jess dealt with our investment loan and provided a top tier service. They kept us up to date and communicated every step of the process making it a seamless and smooth experience! Awesome work team we will definitely be back for future loans!
Jess from Kingfisher was outstanding. I couldn't fault her communication, expertise or dedication to finding the best loan for our situation. The entire process was seamless from start to finish. We'll definitely be using Kingfisher again in the future. A top-tier organisation.
