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• Q1 What is a margin call?

  A margin call can occur if you have borrowed and invested using a margin loan or similar loan instrument. A margin call is a situation that arises when the loan-to-value ratio (LVR) of a portfolio rises above a limit pre-approved by the lender (ie. the value of equity in the portfolio falls bel ... Read more

• Q2 What is the difference between good debt and bad debt?

  Good debt is debt for which you are able to claim a tax deduction for interest costs as the funds are being used to generate assessable income, such as an investment loan or an investment property loan. Conversely, bad debt is debt for which no tax deduction can be claimed for interest costs, an ... Read more

• Q3 What is debt recycling?

  Debt recycling is the process of turning bad debt (otherwise known as non-deductible debt) into good debt (known as deductible debt). This process generally involves borrowing funds for investment purposes and using the income from those investments, and any surplus income, to pay down the bad ... Read more