Offset account vs redraw facility – the tax difference

Most modern mortgages come with a redraw facility and a mortgage offset account. With a redraw facility you can make additional payments to reduce the outstanding balance of your mortgage, which in turn reduces the amount of interest you pay. However, those additional repayments are not locked away – you can redraw on them at some point in the future. This increases the loan balance, so y...
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Pension asset test changes imminent

Currently, pensions are reduced by $1.50/fortnight for every $1,000 of assessable assets above the assets-test free amount for a full pension. From 1 January 2017 this ‘taper rate’ increases to $3.00 per $1,000 of excess assets. Pension payments will phase out more quickly and the limit on assets up to which some pension is payable reduces. However, the assets threshold for a full pe...
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