Debt Recycling Australia
The Proven Strategy to Pay Off Your Home Loan Years Faster & Build a 7-Figure Portfolio at the Same Time
What Is
Debt Recycling?
Debt recycling is an advanced but simple strategy that converts non-tax-deductible home loan debt into tax-deductible investment debt. Every time you pay down your home loan (even by $1), you create new equity. We help you redraw that equity and invest it into income-producing assets (Australian shares, ETFs, LICs or investment property). The interest on the invested portion becomes fully tax-deductible — giving you thousands back in your pocket every year to accelerate the entire process.
Is Debt Recycling Safe & ATO-Compliant?
Yes — when structured correctly (and that’s the key).
We follow every current ATO ruling to the letter including TR 2000/2, TD 2000/24 and PCG 2019/5. Every single withdrawal is fully documented with an unbreakable paper trail.
In over 10 years and hundreds of clients, we have never had an ATO query or audit issue.
Who Is the Perfect Client for Debt Recycling?
You’re an ideal fit if you tick most of these boxes:
- Own a home or investment property with at least $100,000–$150,000 usable equity
- Have stable employment or business income
- Pay tax at 32.5% or higher (37% & 45% brackets see the biggest gains)
- Are comfortable investing for at least 7–10 years
- Want to retire with choices, not just super and the pension
Why Hundreds of Australians Choose Stickman Wealth’s Debt Recyclers Program
- Australia’s longest-running debt recycling specialists (not a side service)
- Completely fee-for-service — zero commissions or trailing percentages
- In-house mortgage broking, financial planning and tax team = zero delays
- Full ATO documentation pack supplied with every recycle
- Ongoing quarterly reviews and portfolio rebalancing included
- Fixed-price packages — you know the cost upfront
Turn Your Home Loan into Your Biggest
Wealth-Building Asset
Most Australians will pay more in home-loan interest than any other expense in their lifetime. At Stickman Wealth, we flip that on its head. Our Debt Recycling program lets you keep paying the same (or less) each month while you:
- Own your home 7–15 years faster
- Save hundreds of thousands in interest
- Build a substantial share or property portfolio
Additional Resources
Explore our related services:
Real Results Our Clients Are Achieving Right Now (2025–2026)
| Client Situation | Without Debt Recycling | With Stickman Wealth Debt Recycling |
|---|---|---|
$800k loan, $1.4m home, $280k household income | Home paid off age 70 Total interest $920k | Home paid off age 57 (13 years faster) Interest paid $540k → $380k saved Portfolio at retirement $2.1 million |
$650k loan, $1.1m home, $220k income | Home paid off age 68 | Home paid off age 56 → $280k interest saved Portfolio $1.6 million |
Average annual tax saving | $0 | $18,000 – $32,000 every single year |
7 Reasons Debt Recycling Is the #1 Strategy for Australian Homeowners
1. Pay your home off 7–15 years earlier than planned
2. Convert “bad” debt into “good” tax-deductible debt
3. Build serious wealth outside of super while you still have a mortgage
4. Massively reduce your annual income tax (the higher your tax bracket, the bigger the win)
5. Diversify your wealth — don’t have 95% of your net worth in one property
6. Protect and grow your wealth even if interest rates rise
7. Retire with the home owned outright PLUS a large investment portfolio producing passive income
Frequently
Asked Questions
How much equity do I actually need to start debt recycling?
You can technically begin with as little as $50,000–$80,000 of usable equity, but the real “life-changing” results kick in from $150,000+. The more equity is the fuel — the more you have, the faster your home loan melts and the bigger your investment portfolio grows.
Will I need to refinance or change banks?
In 95 % of cases — no. We almost always work with your existing lender by splitting your current loan or setting up the correct redraw/offset structure. If a refinance does make sense (better rate or features), we handle the entire process at no extra cost.
What happens if share markets fall after I recycle?
Markets go up and down — that’s normal. We use diversified, low-cost ETFs and blue-chip shares with a 70+ year track record shows 7–9 % p.a. average long-term returns after fees and tax. We also keep a 6–12 month cash buffer so you’re never forced to sell in a dip. Over 10–15 years the mathematics still wins by hundreds of thousands.
Is debt recycling still ATO-compliant in 2026?
100 %. We follow every current ruling (TR 2000/2, TD 2000/24, PCG 2019/5 and the latest case law). Every single withdrawal is fully documented with a timestamped paper trail. In over a decade and hundreds of clients we have never had an ATO query or audit issue.
Can I use debt recycling to buy an investment property instead of shares?
Absolutely — and many of our clients do exactly that. You can recycle into one investment property, a small portfolio, or a mix of shares and property. The tax deductibility rules are the same as long as the purpose is to produce assessable income.
How long does it take from the first appointment until I do my first recycle?
Most clients complete their first recycle within 4–8 weeks. The timeline includes your strategy session, loan structuring (if needed), opening investment accounts, and completing the ATO-compliant paperwork. Once the setup is done, future recycles only take a few days each.
What Our Clients Say
Ready to See Your Personalised Debt Recycling Numbers?
Book a free, no-obligation Debt Recycling Strategy Session today.
In just 15–30 minutes on screen we will show you:
- Exactly how many years you can knock off your home loan
- How much tax you’ll save every year
- How large your investment portfolio could grow by retirement
Zero cost · Zero pressure · Just real numbers tailored to you.
We work with you to
create, tailored financial
strategies to accelerate
your wealth overtime
while maintaining your desired lifestyle using
our stickman approach to debt reduction and
tax minimisation.
