Should I pay down the mortgage of keep my offset?

An offset account is a savings or transaction banking account where the balance is ‘offset’ against the balance owing on a home loan. The offset reduces the amount of interest owing on the loan.

But what about people who have a lot of money sitting in an offset account? Should they pay down their loan? Or should they leave the money sitting in the account?

Noel Whittaker, Money columnist said holding the money in offset or paying down the loan has the same outcome for interest and tax purposes. However you lose flexibility and the right to claim a tax deduction for the interest.

Source: The Age