This is probably an unusual tax question, but any advice would be gratefully received.

I am planning to take out a yen-denominated housing loan to purchase a first-home in Perth, through an Australian bank in Tokyo (where I am currently residing). The interest rate is much lower, although you have foreign exchange risk (my salary will still be in yen even after I move to Perth, so I figure I should be hedged to a certain extent).

Anyway, I was Just wondering if there are any tax implications for residents of Australia with housing loans overseas. I guess there are no tax breaks on the interest, but I heard there aren't anyway unless it's for an investment property. Just wondering if there are any other tax things I've overlooked.

Any advice much appreciated.

Chris