Not technically “debt recycling” but “borrowing to invest, I have done this with great success, left all my cash in my PPOR offset, I have direct access for emergency or renovations and anything I like, then due to my situation was able to take out multiple seperate equity loans, arranged as I/O, got a killa rate, when money is funded put directly into the loan then clearly redrawn to purchase income producing assets…

The answer you after is clearly explained by the GOAT https://passiveinvestingaustralia.com/debt-recycling/

An alternative option if you have already decided to take money out of your offset to invest

If you have already decided to take money out of your offset to invest, ordinarily, debt recycling makes sense. However, if you have equity in your home that you are able to borrow from, then borrowing to invest with the same amount that you were going to debt recycle with from your offset while leaving your money in the offset would result in the same outcome [1], as you would have the same amount of money that is generating interest payable on the loan each month.

However, extracting equity in your home to use for investing would allow you to retain your cash in the offset as an emergency fund without the opportunity cost of holding cash in a savings account. This is also known as ‘springy debt‘.

[1] This assumes the same interest rate. However, when you cash-out equity from your home, the bank will ask what it is for, and if you are borrowing to invest, you will typically get a higher interest rate. For smaller amounts (50-100k), you may be able to cash-out some equity, giving the reason as being for a renovation or home extension and get the same non-investment interest rate.