I thought there was some speculation at some point as to whether the ATO was going to put a cap on the amount of points that could be gained through business/investing activities (including credit cards and mortgages) where the points are used for personal use.
For example a frequent business traveller who clocks up 100,000 points pa from business travel, paid for by the employer, or a business owner who pays all his business accounts on a personal cc and then reimburses himself (I had a client who did this with a medium sized company and was getting around 500,000 points pa. and the ATO were quite interested in him) or in your case points earned from a tax deductable source, ie your IP mortgage.
The link in my last post confirms that a recent ATO draft ruling indicates that this is not the case.
By the way what is the interest rate/fees/ comparison rate on your loan?
If you are happy to pay more in interest to get the points, good luck to you. I would hazard a guess and say that you are paying more than 6.5%, if you are paying around this amount, let me know what product you have and I might look at a refinancing.
Personally, for an IP I wouldnt pay more than 6.5%, no fees.
Pete
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