Finance Battles

 Lets throw two options into the ring and see who comes out on top.

  1. House Deposit: IP Offset vs HISA
  2. House Deposit: HISA vs FHSSS
  3. Investing: IO with PPOR Offset vs P&I

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DIV 293 Tax

I'm considering the impact of DIV 293 on my possible IP sale, so lets see what its all about. DIV 293 tax is a fun one as it works on the lessor of two amounts. Thus some funky things occur. Now lets put aside the very good point that focusing on reducing tax is a terrible strategy, and focus on reducing tax. Formula If  DIV 293 Income > $250K  then DIV 293 applies. If  Super < Income + Super - $250K  then  Super Assessed  Else  Income + Super Assessed Note:  Income  on this page means all DIV 293 Income excluding Super. Hold My Triple Venti Half-Caf Soy Latte Wait a second, I see something... = Super > DIV293 Income + Super - $250K = Super - Super > DIV293 Income + Super - $250K - Super  (Subtract Super both sides) = 0 > Income - $250K  (Eliminate) = Income - $250K < 0  (Reverse) = Income - $250K + $250K < 0 + $250K  (Add $250K both sides) = Income < $250K Oh, I did not expect to simplify what it t...
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GHHF vs Self-Leverage

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GHHF has now been available for over a year, providing us with an opportunity to compare its real-world performance against a hypothetical self-leveraged portfolio. While both aim to boost returns through debt, there are critical differences in rebalancing, currency exposure, fees, and tax implications that can sway the outcome. The motivation is GHHF has access to cheaper debt than most can get via there mortgage, so is it worth moving over to it? Or do the other costs decay its lead? The idea is to compare GHHF to self-leverage, that is buying the same assets with the same amount of debt where the debt is obtained via debt recycling or an equity release. Disclaimer: I'm no expert at doing these comparisons, so take everything with a grain of salt. TLDR GHHF and self-leverage have delivered remarkably comparable returns over the past year of 17.6% pa vs 17.7% pa. Differences While I attempted to keep the differences to a minimum, there are a few differences between the two options...
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Finance Battle #2: House Deposit: HISA vs FHSSS

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In this lineup let's see the difference in FHSSS and HISA. FHSSS $10K put into FHSS ends up as $8,500. Lets assume 4% deeming rate, so you can withdraw =$8,500 x 104% = $8,840. Now you withdraw with MTR 32%: = 8,840 x (100% - 32% + 30%) = $8,663.2 MTR 39%: = 8,840 x (100% - 39% + 30%) = $8,044.4 MTR 47%: = 8,840 x (100% - 47% + 30%) = $7,337.2 HISA $10K income into HISA. Lets assume 5.5% return. MTR 32%: = 10,000 x (100 - 32%) x (100% + 5.5% x (100% - 32%)) = $7,054 MTR 39%: = 10,000 x (100 - 39%) x (100% + 5.5% x (100% - 39%)) = $6,304 MTR 47%: = 10,000 x (100 - 47%) x (100% + 5.5% x (100% - 47%)) = $5,454 FHSS Relative Improvement Relative to HISA So how much better if FHSS after just 1 year? MTR 32%: = (8,663.2 - 7054) / 7054 = 22.8% MTR 39%: = (8,044.4 - 6304) / 6304 = 27.6% MTR 47%: = (7,337.2 - 5454) / 5454 = 34.5% ANZ FHSS Calculator This calculator compares over 4-7 years which is an improvement over my above calculation. I believe it also includes the impact of the withdr...
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