Colin,

It probably says something like settlement will take place within 21 days days of XXX. With XXX being registration of strata plan etc.

It would be a good idea to change the loan to Interest Only with a 100% offset account. But as you are only going to be absent for 2 years this is not so essential – but still a good idea in general.

Its very unfortunate that you had all income deposited into your loan. The interest on the whole loan will now not be deductible. You would need to work out the deductible component, which would be the balance after all deposits into the loan were made. Interest on the parts withdrawn won't be deductible. Your loan is containinated with part used to purchase the proeprty (which would be the deductible part) and part used for private purposes. Normally it wouldn't matter if you are not claiming anything, but now it does.

Land tax is payable on investment properties (and owner occupied over a certain val). There is usually a tax free threshold. And the tax is only on the land value of your property. So if you only have one property the land tax may not apply. This is a State tax.

There are also CGT consequences. By renting out your home it will no longer be exempt from CGT. BUT, depending on your circumstances you may still be able to claim it as your main residence for up to 6 years and thereby avoid CGT.

ritchie

The ATO may not even require a loan agreement between spouses. She incurs the interest, but you claim it. yo could go and draw up a loan agreement though.

Jsut check with your accountant.

Hi Guys

I didn't know you could do that. What about FBT?

I have also heard that there are special rules for people working for charities and hospitals etc because of special tax exemptions those entities have.

I would see a lawyer first, and work out the legal issues.

Then I would suggest you work out the investment issues. This is the hard part and you should do you own research as well as talking to various professionals such as tax accountants, lawyers, mortgage brokers and financial planners.

Salary sacrifice a credit card? What do you mean? Does the employer just pay the credit card for you each month by reducing the taxable wage by the same amount?

If you pay a loan with a credit card then you would need to do a cash advance and then use the cash to pay. No lender would take the credit card payment. Same with rent, the real estate agent may be able to charge a credit card, but they would want the card fee added on the transaction – 1-2% usually.

If the tenant pays the bills then you could include it, but the amount they pay you  would be income i presume.

I may be being too strict, but you never know. I have a friend who has been audited by the ATO and he had transferred money from his loan to his savings account, mixed with other money, and then invested it. They never picked it up or mentioned it so it wasn't a problem.
But better to be safe and sure.

still not ideal. but better than the other way.

Michael,

Did see your post there. Special disability trusts are just trusts set up for someone with a disability. If it is set up for the maintenance of the person with the disability and the disability is severe then there are many tax and centrelink benefits – the trust assets may not count as the person's assets up to a certain level, so someone could still receive centrelink benefits and be a beneficiary of the trust.