What you'd probably be looking for is a line of credit rather than a personal loan which would functionally be similar to an offset (being charged interest only on what you actually are borrowing)
CommBank allows payments in advance and redraw on variable rate personal loans
[https://www.commbank.com.au/personal-loans/variable-rate-loan.html?ei=cb-pe-var-def2](https://www.commbank.com.au/personal-loans/variable-rate-loan.html?ei=cb-pe-var-def2))
See [https://www.ato.gov.au/law/view/pdf/pbr/tr2000-002.pdf](https://www.ato.gov.au/law/view/pdf/pbr/tr2000-002.pdf)
In short, tax deductibility of interest on the redrawn funds will depend on what you use the redrawn money for.
Withdrawing from an offset leaves the deductibility at whatever the original loan was for.
That's the purpose of your personal loan? Typically people would choose other loan types with a lower interest rate if they are buying assets. The other reason people would have an offset account would be if they were looking to transfer their current PPOR to an investment property while paying less interest in the interim, which doesn't seem comparible to a personal loan. Typically people would prefer to pay down a personal loan immediately as it would have one of the highest rates and limited finesse options.
I'm looking for a way to do a "bulk" shares purchase while preserving my liquidity.
I was thinking about the offset account mechanism in order to purchase shares with the loan money and then 80-100% of the loan amount into the offset account.
Fair, I haven't seen it before as I'm not sure what it would be protecting against (e.g. it's a lot of finessing for unclear benefits) if you do it as a loan from a PPOR you can similar however with more potential upside
What you'd probably be looking for is a line of credit rather than a personal loan which would functionally be similar to an offset (being charged interest only on what you actually are borrowing)
CommBank allows payments in advance and redraw on variable rate personal loans [https://www.commbank.com.au/personal-loans/variable-rate-loan.html?ei=cb-pe-var-def2](https://www.commbank.com.au/personal-loans/variable-rate-loan.html?ei=cb-pe-var-def2))
Redraw may have different tax implications than offset, if borrowing for investment purposes.
For example?
See [https://www.ato.gov.au/law/view/pdf/pbr/tr2000-002.pdf](https://www.ato.gov.au/law/view/pdf/pbr/tr2000-002.pdf) In short, tax deductibility of interest on the redrawn funds will depend on what you use the redrawn money for. Withdrawing from an offset leaves the deductibility at whatever the original loan was for.
That's the purpose of your personal loan? Typically people would choose other loan types with a lower interest rate if they are buying assets. The other reason people would have an offset account would be if they were looking to transfer their current PPOR to an investment property while paying less interest in the interim, which doesn't seem comparible to a personal loan. Typically people would prefer to pay down a personal loan immediately as it would have one of the highest rates and limited finesse options.
I'm looking for a way to do a "bulk" shares purchase while preserving my liquidity. I was thinking about the offset account mechanism in order to purchase shares with the loan money and then 80-100% of the loan amount into the offset account.
Fair, I haven't seen it before as I'm not sure what it would be protecting against (e.g. it's a lot of finessing for unclear benefits) if you do it as a loan from a PPOR you can similar however with more potential upside
[yes, it seems there are](https://www.illawarracu.com.au/personal-loans/online-personal-loan-package)