The legislation does not specify a minimum time. Nor does the ATO tax ruling on this one.

No, this would not be possible because you can only count 1 property as your main residence at any 1 time.

CGT is exempt for main residences up to 5 acres only. So your property will be subject to CGT even if you live in it. It might be best put in a trust – but consider the land tax side of things too. This is complex as there are exemptions for primary producers etc.

Usually when you die your property is left to a beneficiary in your will. There are usually no stamp duty of CGT when it is transferred, but there will be CGT when it is onsold by the beneficiary. They will usually be considered to have acquired the property at the price you paid for it, for CGT calcs.

All states in Australia have laws against perpetuities, except SA. So if you set up your trust in SA it can last longer than 80 years – forever possibly!

Trusts don't usually pay tax. Any CGT will be passed on to the beneficiaries and if a beneficiary is a natural person they should be entitled to the 50% discount (if held for 12 months or more). If a company were to receive the CG, then no discount.

If you buy the property in your own name you may be able to claim the interest against your personal income, but this will depend on lots of factors such as what the property is being used for, or your intentions – eg to construct etc.

Just remember negative geared properties will one day make a profit. So buying in your own name now may save some tax, but long term…..

Trusts are separate entities for tax, so any losses cannot be used to offset your personal income.
FHOG cannot be used for properties purchased in a trust.

I think the wording of that special condition was a bit vague. Is it reasonable to be worry about such a problem?

You may be able to terminate the contract on other grounds though. eg some of the required reports may have been missing etc. Better check with your solicitor

Most lenders calculate interest on a daily basis. So putting your funds into the loan 1 day early will save you 1 day interest, and then you will be saving interest on interest etc. Compounding effect. Paying fortnightly means you are paying the equiv of 13 months per year, but you are also paying the funds into the loan sooner thereby saving you a few weeks interest on that repayment  as well as the compounding effect.

But I agree that an offset account would be more ideal. As soon as your pay hits the offset account it will be saving you interest.Every day counts

If you do it with the intention of selling then CGT won't apply and it will be income tax (ie no discount).

Generally you can claim anything associated with building the property and holding costs, travel costs, accounting advice etc.

Don't forget to factor in GST in your calculations too – you will need to charge the buyer 10% GST>

Yes, the PIT., Will it survive an audit?

There are many problems with hybrid trusts. Depend on the date of your deed and the wording the interest may not be deductible at all, or partially deductible, or maybe even fully deductible.

State doesn't matter for taxation matters as it is a commonwealth tax.

Best to seek advice before you invest – and get it in writing.

number8

Didn't think it was directed at me so no offence taken. Just couldn't see which post you were referring to.

Who is this directed to?

Lots have changed since that book was written! There are a few old threads here about the PIT and the author of the book posted too. Mr Chan – forget his first name.