u/ExpensiveSmell9541

This is regarding the proposed changes to negative gearing. I understand that existing investment properties are expected to be grandfathered.

However, I want to clarify how this would work if I were to draw equity from an existing investment property and use those funds to purchase an additional property.

In that scenario, would the interest on the new borrowing still remain tax deductible immediately in the previous property or will it be held as a loss in the new property?