Let me try:
Option – firstly this is an agreement between X and Y where X can buy Y's property, but doesn't have to. Y must sell to X if the conditions are met. So Y is locked in, but X isn't

Call Option is an option where X thinks the price is going to rise.
eg.  X buys a $1000 option on a $500,000 property with a strike price of $520,000.  X would only buy an option if he thinks the property will rise above $521,000 (strike price plus his option fee). Y sells the option because he thinks it won't and he will get $1000 for his troubles. Here the seller is locked in.

Put Option. This is one where the seller thinks the value will fall.
Seller Y sells X and option to purchase with a strike price of $500,000 and an option fee of $1,000. If the property goes down in value below $499,000 X ain't going to buy – because it has gone down in value. Y will have gained by keeping the option premium. Here the buyer is locked in.

Put/Call is a combination of the above.
The seller is locked in and the buyer is locked in. Neither can get out of the contract. These used to be popular because you could enter into a binding agreement without entering into a contract of sale for the property. Just an option contract. Stamp duty would be avoided if the buyer wanted to onsell before settlement. State Govts have introduced new laws to prevent this now.

And/or Nominee
This is where you sign a contract and put you name and ' and/or nomiee' after it. Before settlement you are able to nominate someone else as the purchaser.
This was used, illegally, in the past by some to onsell before settlement and avoid paying stamp duty. It would only have been possible if you had entered into a written agreement with the nominee before you signed the contract (but people used to back date these agreements). These days the OSR are much more strict regarding this and it could result in stamp duty being paid twice.

When you enter into an option agreement you are entering a separate agreement than the contract of sale of land. Usually the option agreement would have the contract of sale attached to it as an annexure, but you are not entering into that contract until you exercise the option.

Also consider what happens if one goes bankrupt. Or worse, divorce. What is a spouse puts a caveat on the property and you are unable to sell – and he/she subpoenas all records related to the property etc.

Yes thats true. At 95% LVR you probably couldn't cross collateralise them anyway.

only if there is a profit.

oh, sorry, don't know much, actually anything, about that.

Without checking too closely i think if you purchase an option on a property for $1 then you would pay stamp duty on the amount of $1 – there is probably a minimum nominal sum.

If you then onsold the option you would have  capital gain of selling price less purchase price less costs. So on your example $499,999 capital gain. You wouldn't get the 50% discount unless you had held it for 12 months of more. less legals.

Why not ring the OSR and ask them the question. Say you are buying an option on some land and how is the stamp duty calculated. They won't give legal advice but should be able to help with a basic question like this.

GST is a different matter. I am not sure if it would apply, but if it did then it is 10%, so you would pay 10c on the purchase and have to charge 10% on the sale which would be $50,000 on $500,000.

On another note, why would a vendor accept a $1 option price? They will not benefit much out of it, and will probably spend $500 in fees for their lawyer to explain it to them (and tell them not to accept).

This may make borrowing complicated!

What about a discretionary trust with a corporate trustee. It is unlikely she will do an ASIC check.

I agree. Wouldn't even consider the mortgage managers because of the fact that all of their loans are mortgage insured.

Hey, that was a joke too BTW. Poor people benefit by being the recipients of the donations.

NSL, what are you thinking about when you ask the question? are you thinking of setting up a charity?

NHG

I think you have considered most things, but perhaps the most important is how to structure the  group so that you do not waste all your borrowing capacity. Imagine if the bank requires personal guarantees from all members – each person will be responsible for the whole loan. So applying for future loans will mean that the whole debt of the first loan will be taken as being borrowed by that person, yet possibly only one quarter of the income will be allowed. This can greatly decrease borrowing capacity.

You may also not know what other debts etc the other members have. One person may drag the group down because of higher debts compared with their income.

On the other hand you may need all 4 people's incomes to service. And a lender may not allow someone's guarantee unless that  person is part of the group.

So you need to be careful in structuring. Some banks will want guarantees from all directors. Others will want guarantees from all units holders or all named beneficiaries – you may not want this.

Giving guarantees also creates considerable risk. Its best not to give a guarantee unless you must. If one project goes bad you don't want to ruin the whole group. All will have their credit files damaged and personal assets at risk.