Property · one cycle
Pay the home loan, then invest
Why this matters. Interest on the home you live in is not deductible. Interest on money borrowed to invest can be. The page splits the loan the way you type it. It does not say to redraw.
One year. Spare cash pays down the home loan, then the same amount is borrowed again on a separate investment split. Interest on the home stays private. Interest on the new split can be claimed, if the money was borrowed to earn income. Not a reason to start.
Interest you still can’t claim
$45,000FY2026–27
What’s left of the home loan.
Interest you might claim
$3,150FY2026–27
Only if that split was borrowed to buy something that earns income.
Before this, interest on the whole loan is $48,000, and none of it can be claimed on the home you live in. Tax saved on the claimable interest, at the rate you typed, is $1,481. Income from the investment, after fees, is $3,100 (6.20%).
Investment down 20%
$40,000
Investment 0%
$50,000
Investment up 20%
$60,000
- The ATO looks at why the money was borrowed, not the name on the loan.
- The bank split and the paperwork are what make the interest claimable. This page doesn’t set those up.
- A bad year makes the loss bigger, just as a good year makes the gain bigger.
Next: Super, the loan, or the offset — Extra cash into super, a repayment, or the offset.
What doctors often miss
Interest on a home you live in is not deductible. Interest can be deductible for the part borrowed to produce income, which is the split you type.
Included / Not included
Included
- Concessional contributions cap and 15% contributions tax ↗ · 1 July 2026
- ATO resident tax rates 2026–27 ↗ · 1 July 2026
Not included
- A recommendation to contribute
- Bring-forward rules
- The preservation rules on money just contributed
- Division 293 if your income is not run through it
- Stamp duty, insurance, brokerage and inflation
Assumptions you can edit are the inputs on this page. This is a model, not a prediction, a tax assessment, or a recommendation.
A rough figure — not advice. Terms
Also
Advertisement — labelled, never inside the number.