Stamp duty is payable at market values, as is CGT.

The best way to avoid this is to keep as is.

My idea of risk is more like the unforeseen circumstances – job loss, sickness, change in bank policy, drop in values etc. All this can happen – even if you can service now you may not be able to in the future.

Dan

The tax consequences for allowing a settlor to be a beneficiary are covered under s102 ITAA 1936.
http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1936240/s102.html

I think this basically boils down to if the settler can benefit under the trust then the income of the trust could be taxed at the top rate of the settlor.

You should look up the websites of the bodies you want to join and then download app forms and see if they ask the question. I think bankruptcy may hinder any job which involves money. You could be a lawyer though!

With trusts the ownership of an asset is legally with the trustee. So long as you were not the trustee you would be right. But you would need someone else willing to take that position (or director of the trustee company) and the risk, as they would also need to guarantee the loans of the trust.

1. The borrowing expenses themselves can be claimed over 5 years or the term of the loan if shorter. If you borrow to pay the borrowing expenses then the interest on this should be deductible too (eg capitalising LMI)

2. If you borrow to pay rates and other expenses then the interest on this would also normally be deductible if it is an investment property.

Matt

If you are not happy why not just leave? – probably because of the exit fees? You could at least threaten to leave by requesting a pay out figure.

The settlor has to be a person – natural or company. I think a settlor can be a beneficiary, but this will introduce tax problems. But I have never looked into this – although i did see one client who had his son as settlor for some reason.

Why create the uncertainty? Just set up the deed here and get joe blow to be settlor – someone who you will never want to distribute to.

John – you don't say if you are a resident in Australia for tax purposes (this is different to your immigration status – you could be a resident for immigration purposes but a non resident for tax). If so then I suspect you will be able to claim the Australian home as your main residence. There is no minimum period required to live in a house to make it your main residence – it will depend on the circumstances.

Tony – I don't think the FIRB could help, FIRB deals with foreigners investing in Australia, not tax, nor the OSR for Capital Gains tax as this is a commonwealth tax collected by the ATO.

Whose book? Steve McKnights?

There is no need to register a trust. In many states stamp duty may be payable on the trust deed though.

Whether you have a mortgage on your house shouldn't matter, you can still get a trust started and you could even get a loan in the name of the trust, such a LOC but using your house as security.

tell them you want a cheque – then deposit it in the account.