I think you may have confused a few things there.

Why bother with an offset on the investment property? I would not use one there until you have fully paid off the PPOR loan or have the 100% offset attached to this at the level of teh loan.

I am not sure what you mean by " Set up a Offset when you have build up enough equity in IP (To start with, you may have to put funds into offset yourself)". I would be putting all income and savings into the PPOR offset and paying everything from there. The reason for this is that money in the PPOR offset will be saving you interest which isn't deductible whereas if you had put money into a IP offset you will be saving interest, but this will be reducing your expenses and thereby mean more tax is payable.

Also not sure what you mean by "When you have build enough equity on IP, top up your offset attached to IP which can be further used to purchase subsequent IPs. " You can only increase an offset by adding cash into it. If you have equity what you would want to do is to borrow against it.

Its called aggregated stamp duty. see s24 of the Duties Act (Vic)
http://www.austlii.edu.au/au/legis/vic/consol_act/da200093/s24.html

You may need to stagger the purchases over 12 months to avoid aggregation.

I was just watching a show on TV and they said around $6,000 to rewire an old house.

Don't forget loans have no bearing on CGT.

Hi Graeme – I think I know you from many years ago.

There would be CGT or just income tax on the sale as it was not your main residence for the whole period

it may be possible to get up to 66 to 70% of the end value in some circumstances. But if you are just buying 1 block, probably not. You will be limited to 80% to 90% LVR on the current value.

Thats a good return on their investment!

Thats a good return on their investment!

You need to set it up so that it doesn’t look like a scheme. There may be a number of ways to do this such as having other commericial reasons, other entities, different banks, offset accounts, cashflow reasons etc.

I think he will need to lodge a tax return in PNG and pay tax there. If there then he will also have to lodge a tax return in Australia and declare the same income and his property and get a credit for tax paid over there. The negative  geared property will reduce his tax payable in Australia. Depending on the tax laws in PNG he may also have to declare his other Australian income such as rental property income.