sorry, should be s118-145

I am located in the CBD. Legally licensed to give credit, legal and tax advice.

Bit confusing. I cannot understand what you have written.

You cannot swap assets between trusts or consolidate them (at least without some major issues).

You could have children take over the trust. But whether this will assist you claiming social security will depend on many things. Complex stuff you need to seek legal advice.

Why should either get any grants?

Hi Richard,

I agree a related party can lend to a SMSF at lower rates than commercial rates. The ATO ID you refer says this, but this is only for the SIS Act. It doesn’t cover someone borrowing and onlending to a SMSF at x and onlending at y – where y is less than x. This doesn’t make commercial sense and the individual would only be able to claim interest to the extent of the income they receive. ie they couldn’t claim a loss.

Probably not a company.

A trust structure is well worth considering, but make sure you get good legal advice as there are about 10 areas you need to consider – succession, stamp duty, trust law, land tax, convenacing act, coroporations act, SMSF laws etc etc.

Good question – to which I don't know the answer.

You will have to look at what income they base the FTB B on – it is not taxable income. Any loss from a rental property could affect affect you – but not claiming a deduction would also mean a higher income from rent.

Refinancing involves taking a new loan so the same rules apply. Deductible over 5 years or the life of the loan if shorter. You can also claim the rest of the borrowing expenses on the first loan if less than 5 years has past – assuming both are investment related.

it may be better in long run not to pay down investment debt while not yet having a main residence. you can acheive same interest savings with a 100% offset account and potentially save yourself thousands in tax down the track.

of course it is legal to ask for payment.