PPOR in a Family Trust Tax Deductible?

Hi All,
My current situation: I've a family/discretionary trust. I trade options trough it which is my source of income. So it's the trust that makes the money (which then the accountant distributes between myself & my wife).

I'm planning on buying a new PPOR (my old home I'll rent out). I'll buy it in my trust's name.

My accountant told me that if it is in the trust's name the interest would be tax deductible if I rent it from the trust. Let me repeat that: the new PPOR will be in my trust's name which is the income earner. I'll rent it from my trust and will deduct the difference between the interest for that house and the (market) rent that I'd be paying to the trust from the (trust's) taxes.

So the idea is to have a negatively geared PPOR in the trust and still claim some tax back (which would be impossible if the PPOR was in my name).

Can you confirm that this approach will work?

Cheers,
Emil

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