Question: I have bought a house and the loan is $500,000. i have $50k in my offset account. My parents have about $120k in a bank account and have no debt and own their house. they both still work. My father earns $110k my mother is on about $45k and the savings are in her name. Because of the tax my father would incur. Would it save more in not paying taxes if they were to "gift" this money to me and i put it in the offset account? i am prepared to pay 3%pa interest to them on the return still saving me roughly 4%. it is possible that my mother may retire in the next 6 years on which i would likely return in to their account as a gift.

Answer: I certainly agree that you are better off to have the money in the offset account where you can earn the equivalent of 7% after tax.  Just take care that any arrangements you make to compensate your parents do not create taxable income for them.