No, interest would still be deductible. But they are proposing to limit negative gearing, or using a loss from property investing to reduce your other income.

Without any draft legislation it is impossible to know what they are proposing.

i can’t give you complex legal advice on a forum, and even in private I wouldn’t advise on foreign trusts and tax as it is not an area that i work in. As one example, consider the tax consequences if a settlor can benefit from a trust.

Another example is asset protection – you being an intermediary opens a can of worms.

The Code is different to the NCCP. The Code is just a schedule of the NCCP, i.e. a part of it.

What do you think of s29 of the NCCP?
http://classic.austlii.edu.au/au/legis/cth/consol_act/nccpa2009377/s29.html

sounds like you are the borrower to me.

Sounds like a host of legal issues too.

Who is the borrower?
You or a company?
If it is the company, why is the money going into your account?

I think you didn’t understand my previous post as I answered these.

It does matter who the borrower is. If he is lending to you as agent or trustee of the trust you are an individual.

There are also various other legal and tax consequences to doing this.

Your dad should seek legal advice.
But if he is lending to a corporate trustee the National Credit Code does not apply as the borrower is not a natural person.

banks basically don’t want to give borrowers borrowed money without a purpose. Small amounts may be ok, but larger amounts they will want to know what you are going to use the money for and they may want evidence too

a person not lending as a business wouldn’t be a coded loan either.

I don’t think this is the case Richard, (and you have contradicted your earlier statement about loans less than 62 days).
Can you cite any legislation

you are borrowing money so you must meet all the usual requirements, including ‘cash out’ restrictions.
business as usual.

And don’t forget that both members of a couple are unlikely to die at the same time, unless they travel on malaysian airlines perhaps. So it is likely one of the spouses will inherit their spouse’s assets first. This allows for further planning opportunities, though you need to plan ahead as wills cannot be changed once capacity is lost.

Good point Richard. Get around it by just not lending to natural persons buying resi property.

Hi Rosetta

am a little confused by this sentence “There are other strategies to consider such as triggering a CGT event now, and plan to reduce it” Perhaps you could clarify this for me please

As an example say you have a house with a $400,000 potential capital gain. You could sell 50% of it to your spouse, meaning a $200,0000 gain is tri…[Read more]

A will incorporating a testamentary discretionary trust, or multiple trusts, will cost about $3k to draw up, but the tax savings should be multiples of this, especially if there are non-resident beneficiaries. It might even help with UK inheritance taxes. My understanding of UK inheritance taxes, which is probably wrong, is that it is based on the…[Read more]

You will need to get a credit licence and once you have that you can start to advertise, approach brokers, etc

It depends. Generally the main residence can be sold tax free up to 2 years after death. But not all main residences are CGT free – over 2 hectares, run a business from there etc.

get some legal advice about minimising taxes. One way may be thru a testamentary discretionary trust.

Have you got a credit licence?

why would someone sell something for 60% retail price?
When you sell property there is generally a 10% deposit and the rest is paid at settlement. And you cannot get access to the deposit generally.

It sounds like you are wanting people to pay up front, but not get legal title until 2 years later. Don’t think many would be prepared to risk…[Read more]