Perhaps it is a temporary thing until the sinking fund reaches a certain level.

You need advice to set up the structure.

You cannot transfer your super into a trust unless you have met a condition of release. But if that is the case why would you as the CG and income inside a superfund would be exempt from tax at that stage.

You have to look and see if the body corporate has the power to issue these contributions. If so then you have to pay.

Sorry, don't mean to alarm you but Its too late now. You have set it up all incorrectly and The ATO can deny the deductions. See the case Domjan.

You can't borrow money and put it into a savings account – well you can but the interest will not be deductible because it is not investing. Mixing it with cash makes it even worse as you can't trace the borrowed funds.

It is like taking some milk and storing it in a class of orange juice and then saying you will take the milk out later to make a cup of tea.

What was in the contract you signed? Did you see any strata searches or conduct any?

You should seek advice on using the LOC to pay for loan repayments. What is your purpose in doing this? ATO can apply Part IVA and deny your deductions.

For a development it would be a good idea to use a separate structure such as a discretionary trust with a corporate trustee (not beneficiary, but could be that too).

But the trouble with your set up is that all your assets will be exposed by the need to give a personal guarantee. If the trust is sued then having a company as trustee will assist you protect you other assets, but if the development fails the bank can come after all your assets.

Trusts need to distribute income or the trustee will be taxed at the top rate. If your trust can only distribute to people on the top rate then there will be no tax savings.

But most discretionary trusts have the ability to distribute to a company as a beneficiary. So what you could do is set up a company and have the trustee distribute to that. Companies pay 30% tax which result in some savings.

The company could then onlend money to the trust, with tax advice, and the trust could buy more property. Eventually you may want to get some money out of the company and you could do this via dividends when you are on lower tax rates, or as loans (careful).

The great thing about discretionary trusts is the flexibility. Distributions can be changed year to year at the discretion of the trustee and this is something that buying in your own name cannot assist with.

eg. Imagine if one spouse stopped working for a year due to sickness or pregnancy, or travel etc.

Kids can only get $416 from trust income per year without being hit with penalty taxes.

But, a trust set up under a will or post death in some circumstances will have its income classed as exempted trust income and a child can pay tax at adult rates. This means roughly $20,000 pa fax free per child. So make sure you consider a discretionary trust in your will.

Yes, It workers and engineers love the old spreadsheets

No they can't do that unless If either one of them has met a condition of release they may be able to get a lump sum.

There is a condition of release met if:

1. over 55 years of age and work less than 10 hrs

2. financial hardship

3. temporary or permanent disability

4. terminal medical condition

Just out of interest are you an Engineer or IT worker?