Debt Recycling Articles

Plain-English guides on debt recycling for Australian homeowners — how the strategy works, the tax mechanics behind it, and how to weigh up whether it suits your situation. Pair them with the free Debt Recycling Calculator to model your own numbers.
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Guides & explainers

Practical, plain-English guides covering the strategy end to end — how it works, the tax mechanics, the risks and the setup. General information only, not financial advice.

Basics6 min read

What Is Debt Recycling? A Plain-English Guide for Australian Homeowners

How debt recycling turns a non-deductible home loan into tax-deductible investment debt — without borrowing a cent more — and the type of homeowner it actually suits.

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Compare8 min read

Debt Recycling vs Paying Off Your Mortgage: Which Builds More Wealth?

The two strategies side by side over 20 years, and why the after-tax cost gap — not the headline interest rate — usually decides the winner.

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Tax7 min read

How Franking Credits Supercharge a Debt Recycling Strategy

Australian dividends arrive with 30% company tax already paid. Here's how those franking credits cut your tax bill and speed up the repayment loop.

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How-To9 min read

Setting Up a Split Loan for Debt Recycling: A Step-by-Step Guide

From asking your lender for a loan split to keeping the deductible (DL) and non-deductible (NDL) portions clean — the practical setup the ATO expects.

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Tax6 min read

2025–26 Tax Rates Every Debt Recycler Should Know (Stage 3 Cuts Explained)

The new marginal brackets, the 2% Medicare Levy, and why your tax rate is the single biggest lever on how quickly debt recycling works for you.

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Strategy7 min read

Is Debt Recycling Worth It at Today's Interest Rates?

Your effective borrowing cost can sit under 4% after tax. We compare it against long-run ASX 200 returns to find where the break-even point lands.

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Risk8 min read

The Risks of Debt Recycling — and How to Manage Them

Markets fall, rates rise, and the debt stays. A clear-eyed look at sequencing risk, cash-flow pressure, and the buffers that keep you in the game.

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Compliance7 min read

Debt Recycling Mistakes That Can Cost You the Tax Deduction

Loan contamination, redrawing into the wrong account, sloppy records — the avoidable errors that turn deductible interest into a denied claim.

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Investing8 min read

Choosing Investments for Debt Recycling: Shares, ETFs and Managed Funds

Why income-producing, franked assets fit the strategy best, and how to think about diversification, fees and franking when you build the portfolio.

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Tax6 min read

Debt Recycling and Capital Gains Tax: What Happens When You Sell?

The 50% CGT discount, timing your sale, and how capital gains interact with the loan you've been recycling for years.

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