Line of Credit and Tax Consequences

I'm starting to look into this loan option known as the Line of Credit (LoC).

So far I found these websites
http://www.pwafinancial.com.au/index.php/resources/latest-news/122-deductible-interest.html

 

It gives a clear warning about using a LoC, originally for a property investment, then later use part of it for other investments. The tricky part is that any repayment may actually reduce the tax deductibility of the interest payments. Examples are given in the article.

http://law.ato.gov.au/atolaw/view.htm?docid=TXR/TR20002/NAT/ATO/00001

This is the official Australian tax ruling of how LoC are to be treated and implications for deductibility of interest on the loan.

More to come.....

Budget 2015: Age pension eligibility criteria tightened in 'sustainable' overhaul

http://mobile.abc.net.au/news/2015-05-07/budget-government-to-outline-changes-to-age-pension/6450946

Excerpt:

At the moment, couples can own $1.15 million in assets on top of their family home to qualify for the part pension.

That threshold will now be reduced to $823,000 for couples meaning about 91,000 people will no longer qualify for the benefit, while another 235,000 will have their pension reduced.

But the bulk of retirees will either see no changes to their pensions, or will receive a small boost.

Rumours and runs in opaque markets: Evidence from the Panic of 1907

http://www.businessspectator.com.au/article/2015/5/8/global-financial-crisis/rumours-and-runs-opaque-markets-evidence-panic-1907

Negative Gearing: What the banks don't tell you

Negative Gearing: What the banks don't tell you

// Business Spectator

Australia's most notorious tax break may not be all that productive for investors in the near future.