Another debt recycling question + mechanics

Hi all,

A few questions. Currently I am about to have a 700k mortgage with a 200k in the offset. I want to invest the 200k into etfs (80% GHHF + 20% GGUS). How would this work? My current understanding is that I pay down my 200k on my mortgage , then I ask to open up a redraw account for $200k, using 199.999k to purchase the shares. I then turn off the DRP, let the funds sit in the brokerage account, use that to paydown the loan and repeat. The question I have is whether capital gains from the etf's would count as income that I could sell down to debt recycle faster. Additionally, how should I be keeping a record for this? My understanding is that it is simply the amount you have in your brokerage account is the amount you have recycled (including the unrealized capital gains).

How do I claim a tax deduction this during the EOFY?