Found it,

DUTIES ACT 1997 (NSW) – SECT 67

Exemptions-transfers to married couples and de facto partners

67 Exemptions-transfers to married couples and de facto partners

(1) No duty is chargeable under this Chapter on a transfer, or an agreement for the sale or transfer, of dutiable property if it is proved to the satisfaction of the Chief Commissioner that:

(a) as a result of the transfer or agreement, the property is or will be held by a married couple or de facto partners as joint tenants or as tenants in common in equal shares, and

(b) the dutiable property:

(i) is land that has erected on it a private dwelling house and was solely or principally used, as at the date of transfer, as the principal place of residence of the married couple or de facto partners, or

(ii) is vacant land and the married couple or de facto partners intend to use it as the site of a private dwelling house to be solely or principally used as their principal place of residence, or

(iii) is shares that confer an entitlement to exclusive possession of a company title dwelling that was solely or principally used, as at the date of transfer, as the principal place of residence of the married couple or de facto partners, and

(c) both the transferor and the transferee are the married couple or one of them or the de facto partners or one of them and no other person is a party to the transfer, and

(d) in the case of de facto partners, the parties to the relationship have lived in the relationship for at least the 2 years before the date of the transfer.

(1A) For the purposes of subsection (1) (b), a private dwelling house may be principally used as the principal place of residence of a married couple or de facto partners despite the fact that it may be partly owned by another person or persons or that it may also be the principal place of residence of another person or persons.

(2) In this section, "private dwelling house" includes a lot within the meaning of the Strata Schemes (Freehold Development) Act 1973 used as a place of residence.

http://www.austlii.edu.au/au/legis/nsw/consol_act/da199793/s67.html

Thanks Fishngym

DUTIES ACT 2001 – SECT 151

151 Exemption–particular residences

Transfer duty is not imposed on a dutiable transaction that is the transfer, or agreement for the transfer, by way of gift, from 1 party to a subsisting marriage or de facto relationship to the other party to the marriage or de facto relationship, of an interest in residential land if–

(a) after the transfer, the residential land will be owned by the parties as joint tenants or tenants in common in equal shares; and

(b) the residence will be the principal residence of the parties.

Hi god

Just reading the Duties Act 1997 (NSW) while waiting for the RBA announcement.
http://www.austlii.edu.au/au/legis/nsw/consol_act/da199793/

I cannot find anything regarding transfer between spouses being exempt. But I recall reading something recently, maybe it was QLD.

Found some other interesting exemptions

• s96 Transfer by corporation of principal place of residence to principal shareholder or spouse

• s274Transfer of certain business property between family members (eg primary production land)

• s284B Restructuring of unit trust for land tax purposes

• s65(11) Financial agreements No duty is chargeable under this Chapter on a financial agreement made under section 90B, 90C or 90D of the Family Law Act 1975 of the Commonwealth.

Probably the salary sacrifice method?

I think most states have exemptions for stamp duty where the property is the main residence and is transferred between spouses – but not for investments properties (unless due to a family court order – consider the tax benefits of divorce?)

Do you have any deposit?

You may not have too many costs if you are a FHO but you will still need to pay solciitor, approx $1000, and lender's mortgage insurance. LMI can be hefty. around 2% to 3% of the loan amount.

The FHOG will be available at settlement, but if you don't have a deposit most of it may be eaten up in fees.

Hi Craig

Don't think any lenders will be keen to lend on the basis of a guarantee securred by a deposit.

The easiest option is to probably enter into a loan agreement with the relative. have everything drawn up properly by a solicitor. And remember, a gift is not usually refundable!

what about the amortization sheet in excel? There are a few loan template sheets around in excel.

In the Hart case they were using a loan product specifically designed to speed up the paying off of the home loan product while maximising the investment loan. It was marketed in this way too. This case wasn't really about the deductibility of capitalised interest as it was deemed a scheme to avoid tax and the ATO was able to apply Part IVA to arrange it. ie they denied it as it was a scheme to avoid tax.
See TD 2008/27 which basically states that capitalising interest is allowable and is deductible if the original purpose of the loan is investment/business.

TD 2008/27

Income tax: is the deductibility of compound interest determined according to the same principles as the deductibility of other interest?

http://law.ato.gov.au/atolaw/view.htm?locid=%27TXD/TD200827/NAT/ATO%27&PiT=99991231235958

1. Def do not use the same structure for your business and other assets. Businesses are risky and get sued all the time. You don't want your assets exposed. Set up costs for a trust are from $200+ on the internet or around $1000 from an accountant with some advice thrown in. Company costs $400 to set up or maybe $1000 thru an accountant. Running costs depend on what assets your trusts have and how many – but it shouldn't be that much more than buying them in your own name.

2. You should consider lending the cash to your company to purchase the assets – whether house or business. But you should also consider that if you personally go down then this money loan is your asset and can be called back. So you would also need to consider gifting it to your trust and weigh up the 2.

Also consider that it is not easy to borrow for a business in this climate.

3. If a bank knows you are going to quit your job to start a business, then it will be unlikely for them to want to lend to you!

4. What is a finance advisor and how much do they charge

5. A good broker can make sure you set your trust up in a way to help you go forward and maximise borrowings – and this should be done in conjuntion with an accountant who can give you tax advice etc.

It is probably similar to that in other states.

eg. the possession needs to be:
– open, not secret
– peaceful, not by force
– adverse, not by consent.

You will need to possess the land for at least 12 years in NSW to claim title.