Is this property strategy feasible? PPOR to IP, equity release for new PPOR

Hi all, looking for a quick check on a strategy we’re considering.

Plan is to refinance up to 80% LVR and release equity to purchase a new PPOR and convert existing to an IP.

Proposed structure: Refinance and split loans on current PPOR

Set investment loans to interest-only

Use released equity as deposit + costs for a new PPOR

New PPOR loan on P&I

Use offsets only and direct wages + IP rent to PPOR offset

I understand deductibility is based on use of funds, not security, so only the initial loan portion is deductible, not the second loan used to purchase new PPOR.

Is this a feasible idea?

Will be speaking to a broker, just wanting to hear experiences or things I might be missing.

Thanks!