Maximise your savings! If you have an investment loan you can package the cost. That means you can pay the interest out of your pre-tax dollars.
Things you need to know
You can only package the interest charged on your investment loan not any principle repayments you choose to make. You are required to submit bank statements to confirm the amount of interest you have paid. As the amount of interest varies from month to month, we are unable to set up regular reimbursements for investment loan interest.
The loan must be 100% for income producing purposes.
If you salary package your investment loan you cannot claim it in your tax return.
If the loan is jointly held, you may only salary package your portion of the interest. For example if you and your partner are equal joint owners of an investment property, you can each package 50% of the interest costs.
Not all employers allow this item to be salary packaged.
