A discretionary trust is one where the trustee has discretion on how to distribute profits. usually the beneficiaries are very wide.

A unit trust is one where the beneficiaries are fixed. each as a unit or units so the profits must be distributed in accordance with the percentage of units owned. No flexibility. These are good for separate families or friends to do a joint business. Units could be held by each parties discretionary trust.

A family trust is actually a discretionary trust which just includes family members – but generally people use this term losely for a discretionary trust which may also include no family members.

BTW, the above is for NSW only, but other states would be very similar

Spouse is defined as defacto you are living with

FIRST HOME OWNER GRANT ACT 2000 – SECT 6

Spouses

6 Spouses

(1) A person is the "spouse" of another person if, on the commencement date of the eligible transaction:

(a) they are legally married, or

(b) they are living together as a couple in a de facto relationship within the meaning of the Property (Relationships) Act 1984 .

(2) A person to whom an applicant for a first home owner grant is legally married is not to be regarded as the applicant’s spouse if the Chief Commissioner is satisfied that:

(a) the applicant was not cohabiting with the person on the commencement date of the eligible transaction, and

(b) at the time of deciding the application, the applicant is not cohabiting with the person and has no intention of resuming cohabitation.

PROPERTY (RELATIONSHIPS) ACT 1984 – SECT 3

Definitions

3 Definitions

(1) In this Act, except in so far as the context or subject-matter otherwise indicates or requires:
"adult person" means a person of or above the age of 18 years.
"applicant" includes a cross-applicant.
"appointed day" means the day appointed and notified under section 2 (2).
"de facto relationship" -see section 4.
"domestic relationship" -see section 5.
"financial resources", in relation to parties to a domestic relationship or either of them, includes:

(a) a prospective claim or entitlement in respect of a scheme, fund or arrangement under which superannuation, retirement or similar benefits are provided,

(b) property which, pursuant to the provisions of a discretionary trust, may become vested in or used or applied in or towards the purposes of the parties to the relationship or either of them,

(c) property, the alienation or disposition of which is wholly or partly under the control of the parties to the relationship or either of them and which is lawfully capable of being used or applied by or on behalf of the parties to the relationship or either of them in or towards their or his or her own purposes, and

(d) any other valuable benefit.

"property", in relation to parties to a domestic relationship or either of them, includes real and personal property and any estate or interest (whether a present, future or contingent estate or interest) in real or personal property, and money, and any debt, and any cause of action for damages (including damages for personal injury), and any other chose in action, and any right with respect to property.
"regulation" means a regulation made under this Act.
"Supreme Court" means the Supreme Court of New South Wales.

(3) A reference in this Act to periodic maintenance is a reference to maintenance paid or payable or to be paid, as the case may require, by means of a weekly, fortnightly, monthly, yearly or other periodic sum.

american concepts don't always work in Australia.

You could buy using a company, but this would result in more tax being paid and offer little or no asset protection.

If you have no property now, i would suggest you look at buying one in your own name, live in it initially (maybe get the FHOG and stamp duty concessions) and then move out again. Using the tax laws to your advantage you could claim this house as your main residence and sell it CGT free for up to 6 years.

Discretionary trust offer very good asset protection and great tax flexibility. Each year you can distribute the tax to the lowest tax payers (amount your trusts beneficiaries) and save tax this way. eg. each child can earn $3,000 pa and pay no tax, each individual $15,000 and no tax.

i have had a few of these sorts of problems – makes you want to invest in shares!

His income is about $15,000 pa. That means rough borrowing cap would only be approx $90,000. Can't accept gurantors from non-spouses (parents maybe ok).

I have heard of this in the USA . Could you please explain how it would work in Australia

They will send you a letter before cancelling it and you can provide reasons why they shouldn't cancel.

I would suggest you look at using a discretionary trust. I would personally only ever buy assets in a trust.

Companys offer little asset protection at all for property ownership – only if the shares are owned by a discretionary trust. Where companies do offer protection is if you are running  a business and the business is sued = the company not you. They could help you if the tenant sues the owner of the property, but not if someone else were to sue you.

Also companies are not the best way to own an appreciating asset as they do not get the 50% CGT discount.

I suggest Trust Magic for an easy to read book about trusts and also to do some searches here and on the net in general.

Also be aware that trusts do have some draw backs such as more land tax and losses cannot be used to offset personal income.

I have never renewed any of my ABNs and it has been more than 3 years. I did have one cancelled because it hadn't been used though.