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 negative gearing.
2. Selling units without stamp duty in some states.
3. Ability to use refinancing principal and borrow to buy private expenses and claim the interst.
. Ability to sell units to a smsf andget tje trust assets into super and the cash of your super out into your hands…

course careful planning and advice is needed.

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.

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.

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 you clarrify in writing with your agent.

And here is a quote, which I am going to charge you $10 for:

"disgarded pizza boxes are a great source of cheese"

THat depends on the benenficiaries. Thwy can gift or loan their money back to thr trustee for further investing. Once a distribution is made it is their money.

Trusts generally must distribute all income otherwise the trustee will be taxed on the income at the top marginal tax rate. Ie 47%

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

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 rates.

Not as simple as you may think.

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.

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

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