It also depends on other factors such as have you paid off your PPOR mortgage? If not then I would be keeping my cash in an offset account attached to that.

There are a number of issues that you need to consider with asset protection.

Firstly, never enter into a partnership. It is extremely dangerous as all partners are liable to debts of the partnership. So you could both end up losing your assets if you get in trouble. You should look at using a pty ltd company as this limits liability, usually, to the company. The company is a separate legal person and If the company goes down the shareholders cannot be liable (unless given gurantees etc), and even the director is generally not liable unless something illegal has happened (insolvent trading, not paying PAYE tax etc). Def have just 1 director.

As for transferring assets, you have to be aware of the various claw back and voiding provisions of the bankruptcy act. Transfers can be voided within for up to 5 years if you go bankrupt and the transfer was at less than market value, s120. Transfers done to defeat creditors then the transfer can be voided – with no time limit. s121.

the NSW conveyancing Act also has voiding provisions for transfers done to defeat creditors. s 37.

Even if you owned a property in the wife's name only and she takes no risk at all, then the property may not be completely safe. An argument could be raised that your wife owns the property as trustee for your share. This would especially be the case if your funds were used to purchase the house, or deposit, and if you contribute to the mortgage.

This all needs to be considered in addition to the tax aspects.

I would suggest you immediately stop paying down the loan and change it to IO while you work out what to do.

Could be both

Yes, I have had experience. invested in a few projects over there.

My advice would be not to invest in thailand. I have written about  this before here.
Why not invest here and just rent over there?

I agree with Dan.

The accountant is incorrect. Unless he is referring to a unit trust. IT 2385 says it all.
If your accountant needs any more confirmation he can look at the recent rulings concerning Hybrid Trusts were deductibility of interest was only possible subject to the wording of the deed concerning the discretion of the trustee.
 

Why not run an example by your accountant and see how he treats it.

And if no names are mentioned the lenders can't ask for guarantees or letters etc. It is only a few lenders too, not all.

the trust deed will determine this. usually there is no limit

Yeah, i think it would continue with the executor in place of the dead guy.

Whether it is a good buy or not is another question.

A trust is where someone (trustee) owns something in their name for someone else (beneficiary). There are many different types of trusts, but the most common for investing is a discretionary trust. This is where the trustee owns a property for a wide class of beneficiaries. Any profit is distributed by the trustee to the various beneficiaries (usually of one family) in a way so that the tax is minimised.

Because the trustee only owns the property for someone else, if he were to go bankrupt then the property is not considered his and is pretty safe from creditors. If a beneficiary goes bankrupt then the trustee simply stops giving them money – otherwise their creditors will get their hands on it. This is the asset protection side.

A company is a separate legal person and can own property. Companys are less flexible in terms of income, and so are not usually used to own property – except as a trustee. Since companys are separate legal persons they are able to be sued. The shareholders behind a company are generally safe if a company is sued – they can lose what they paid for the shares, but can't be pursed for the company debt.