I don't want to dampen your enthusiasm, but think you might be a little low on your costs.

Have a look on the centrelink website. If someone on the pension or near pension age gifts away money they have various rules – which I haven't looked into as have had no need so far.

HI Darren

No need for a company C at this stage. I didn't know you had 2 companies in the mix already.

Your company A must be acting as trustee for the discretionary trust or the shares of company A must be owned by the trust.
You might as well distribute profits from the trust to individuals if their marginal tax rates are less than 30% and then they can gift or lend the money back to the trust.

If successful you will probably want to set up a few of these strucutres to limit potential losses even further.

Hi Jack

Section 118-140 of the INcome Tax Ass Act 1997

INCOME TAX ASSESSMENT ACT 1997 – SECT 118.140

Changing main residences

             (1)  If you * acquire an * ownership interest in a * dwelling that is to become your main residence and you still have your ownership interest in your existing main residence, both dwellings are treated as your main residence for the shorter of:

                     (a)  6 months ending when your ownership interest in your existing main residence ends; or

                     (b)  the period between the acquisition of the new ownership interest and the time when the ownership interest referred to in paragraph (a) ends.

             (2)  Subsection (1) only applies if:

                     (a)  your existing main residence was your main residence for a continuous period of at least 3 months in the 12 months ending when your ownership interest in it ends; and

                     (b)  your existing main residence was not used for the * purpose of producing assessable income in any part of that 12 month period when it was not your main residence.

They can gift you the house with them transferring the house into your name. But this will mean stamp duty will be payable on the value of the place. This could also affect their centrelink payments such as pensions etc. If they transfer it to you then it is yours and you will have equity of the full value. You could also buy it off them for the full amount and borrow 80% to buy it.

Or you could leave it in their names and get them to leave it to you in their will. Since it was their main residence there would probably be no stamp duty payable. But this won't help you access the equity unless they get a mortgage and on-lend you the money.

Buying it for market value may be a better option as you can then gear it to 80% and then they gift you the money back later and you pay down the loan to $1 and have the rest available as redraw. If you just get it gifted it will be hard for you to get access to all the equity as these days the banks do not like approving loans for large amounts of cash.

I don't read the age, but could he mean months listed?

You only get one property which is CGT exempt. (except for a 6 month overlap period when you can claim 2).

SHouldn't be an issue as you are just borrowing from one loan to pay back another – essentially a mini refinace.

One way around this is to buy in a trust with the guarantor a beneficiary – may not suit your circumstances tho.

Taking money from a redraw is just reborrowing it. So deductibility will depend on what the withdrawn money is used for.

Renting from a trust is not a good idea – usually.
Firstly losses in a trust are trapped. So if the trust has no other income the losses just sit there.
If it is making a profit then the trust must distribute this profit so you could end up paying tax on your own house. Even if it starts off with a loss you must charge market rent so it will become positive over time. imagine after 30 years you will be paying huge rent to yourself (essentially) and paying tax on it.
Trusts do not get the CGT exemption so if you sell later on you will pay tax on what would otherwise be tax free.
Land tax will be payable in some states (eg NSW no threshold). I think it is 1.7% in NSW. If owned in your own name it could be exempt.

The only reason to buy a main residence in a trust would be if you are at risk of being sued, and your home is only going to be your main residence for a short period before being rented out to a third party.