Property Strategies
Debt Recycling
Debt recycling is an advanced strategy that aims to gradually convert non-deductible debt into potentially deductible debt. It is powerful in the right hands and risky without proper advice.
The idea in principle
At its simplest, debt recycling involves using equity or repayments to progressively replace debt that is not tax-deductible, such as a home loan, with debt used for income-producing investments, which may be deductible under current rules. Over time the aim is to make your borrowing work harder for you.
Why it demands advice
Debt recycling increases your total borrowing and market exposure, and its tax treatment is specific to your circumstances. Done incorrectly it can create real problems. It should only be considered with personalised advice from licensed professionals who understand the full picture.
Our role
We do not provide financial, credit, or tax advice. We introduce you to independent, licensed advisers, accountants, and brokers who can assess whether debt recycling is appropriate for you.
Related reading
- Using equity to invest — how equity release works in practice.
- Finance and lending introductions — brokers who can structure loan splits cleanly.
Frequently asked questions
Is debt recycling suitable for everyone?
No. It is an advanced strategy that increases borrowing and depends on your circumstances. Licensed advice is essential before considering it.
Does Property Growth Australia set up debt recycling?
No. We only introduce you to independent, licensed advisers, accountants, and brokers who can advise and implement it.