Hi M

I don't know much about the tax aspects and less about GST, but a trustee company can register for GST if it is conducting a business. But this is not recommended due to the risks associated with business – ie don't have your property owned in the same trust as a business. A GST is collected it would need to be paid to the ATO with BAS statement lodgement. reporting is generally every 3 months, but it can be done yearly in some instances.

If the company is only acting as trustee then there is no income and the trust would be the one lodging tax returns and BAS statements.

If a trust is renting premises then the costs associated with this could be claimed, if it is running a business for example. you could charge your trust rent for a home office, but then this would be income to you and may result in the loss of the CGT exemption on your house too. It may be a good idea if you are renting the house though. I think the trust would only be able to claim the GST back if it is registered for GST.

What do you need to know?

Depreciation is claimed by the owner of the property = the 'trust'. If you trust is running at a loss, which it probably will in the early years, then you cannot offset private income and will, ideally, need to direct other income into the trust to offset this.

Its worth looking into as it can free up cash which can pay down non-deductible debt and this will save you tax long term which will hopefully make up for the stamp duty costs.

Or even a company as directors of trustee companies trading can be personally held liable for debts of the trust.

You cannot change ownership without paying stamp duty – generally, an exemption in some situations is for transfers between spouses.

You could transfer half the house, or even less, such as 1% to get your name on title. you will only pay stamp duty on the value of the portion transferred. See if your bank is happy with this first though – get a preapproval, or even a full approval first.

Also consider the other aspects of the deal:
– effect on centrelink benefits for your mum – current/future.
– asset protection benefits
– estate planning – any siblings who may be annoyed for e.g.
– CGT

converting to a LOC is very dangerous. I would suggest you never start putting wages etc in and taking them out. It may work out ok if you are just capitalising the interest, I would have done it part IO with offset and part LOC.

It is a good idea to start borrowing for the property as you plan but run it by your tax advisor first.

He is talking about CGT I think. You still have to pay these costs though.

never heard of it.

I can't help with a solicitor in QLD – and they wouldn't do the calculations for you anyway. Just download a loan amortisation template for excel and you can do it in 5 secs.

Why?

You may as well have the wife as a borrower.