If you have no private debt then losses in a trust should not be much of an issue for you. Especially in this low interest environment. You would be saving money and gifting it or loaning it to the trust to store in its offset account which wod assist casflow.

BLoodline trusts are generally set up under wills. Ie testamentary trusts. People set…[Read more]

Unit trusts are separate to the individual. Arms length usually is used in the context of entering contracts on commercial terms so a unit holder renting from a unit trust will be arms length if renting at market rates and market terms.

Unit trusts are well worth looking at because of some unique stategies such as
. Borrowing to buy units and…[Read more]

Hybrids and Unit trust lending is fine. at residential rates at 90 to 95% LVR too. The problems begin when you start wanting the loan in a different name to the owner of the property (such as company trustee and individual borrowing to buy the units). This is more restrictive and probably not necessary in this situation.

Yes there are various strategies you could implement to strengthen asset protection. Some cheap and easy to implement others costly and complex. This needs to be considered in conjunction with estate planning, tax, stamp duty, land tax etc.

wilko1 wrote:
I think that percentage is 80 percent. That's what it is the building industry. Work more then 80 percent even for the same employee as a subcontractor and you become a employee. The employer would then have to pay your super etc. 

These are known as the PSI rules, lots of different aspects to it, no. of clients is just 1. a…[Read more]

Pimobpi,

Hope you look at some asset protection strategies if you are going to do a development. The protection of what you have is paramount.

misleading and deceptive conduct under the Australia Consumer Law. See schedule 2 of the Competition and Consumer Act 2010

Think of the legal side of it. You have appointed the agent as your 'agent' in the legal sense. You have probably given then authority to enter into contracts on your behalf in relation to the property, including contracting with tradesmen. You are probably liable for any charges of the tradesman as if you contracted them yourself. I would suggest…[Read more]

Be very wary of people in foreign countries offering loans.

BJamin wrote:
Thanks Terry,

So really, it would be best to distribute the funds amongst the beneficiaries which will legally allow you to pay the least tax overall, and then pool the money together again to purchase new IP?

Is a trust taxed the same as an individual if funds are in there at end of financial year? i.e. same tax brackets…[Read more]

Qlds007 wrote:
Yes if it is anything like the UK there wont be anything like interest only loans in 10 years.

Cheers

Yours in Finance

Richard, whats happened in the UK? Whats the average loan look like over there?

I think you need some proper tax advice. Whether someone is a 'developer' or a investor will depend on a lot more than intention.

I am sure policies will change within the next 10 years.

No not correct.

You will still individually be taxed.

A company or trust is able to contract with your employer and you can meet the alienation of personal services rules then the contracting entity may be deemed to earn the money. Then if you are performing the work you will need to be paid from the entity and pay tax at your own maeginal…[Read more]

Jamie M wrote:
From memory, I think Dan who has a simpsons character avatar is an accountant in your neck of the woods. Always a good contributor so would be worthwhile getting in touch with.

Cheers

Jamie

That character is “Disco Stu”!

There is a way to borrow 100% now while still saving the same amount of interest and keeping it so that the full 100% loan is fully deductible in the future and also offers strong asset protection and you could get a 100% offset account. Careful structuring is needed.

No, it is not possible to use your super in anyway – unless you have met a condition of release such as being 60+

Yes you could do that, but you would still be taxed as it is your income.

Its not a simple ues or no answer. Ask him for some formal written advice and see what he says.

It all depends on your situation and how you structure it. You should seek tax advice.