Hi

Yes you could get a LOC on your 2 bedroom unit and then pay cash for the new one. That would keep the new one unencumbered – you could always mortgage it later.

If you are going to live in the new unit, then the interest on the loan will not be deductible. And since your existing unit has no debt, if you start renting it out it will be positive cashflow and you will have to pay tax on the rent (less deductions).

It may be better just to stay in the existing place and rent the new one?

Hi

I think the GST will be on the full sale price, but you should be able to claim a refund of GST on the materials you purchase for the house.

Don't think you can avoid GST unless it was your intention to hold onto the properties long term.

There are some good documents on this available at http://www.bantacs.com.au

Stewar

You haven't worded that very well, so it is unclear what is happening.

Is company A going to buy a unit (a flat) is units in a unit trust?

Is Mary etc buying shares in the company or is she buying a percentage of a property that the company is selling?

If your trust owns the property then it has to claim the deductions. Losses from a trust cannot be offset against personal income.

A way around this is to use a unit trust or a hybrid trust and to borrow in your personal name to buy the units. This allows negative gearing in a trust, but the trusts will be restricted as far as flexibility to distribute income is concerned.

it doesn't matter what is used as security, deductibility depends on who borrows the money and what it is used for.

you could amend the deed, but that will cause a resettlement as crj mentioned. That means the existing trust comes to an end and a new trust is formed which is the same as the old trust selling everything to the new one = stamp duty and CGT. So you will want to avoid that at all costs.

Looks for ways around it. eg, you are mentioned so it may also mention any trust in which you are a trustee also being a beneficiary. So you could then get the money into a new trust which you can then have your children (and everyone else practially) is a beneficiary.

I think you only need to live there to qualify for the grant. Taking a boarder should not matter with the OSR, but it will matter with the tax man. You will lose the CGT free status of your residence – or the part that you rent out.

I am pretty sure St G require an ABN, not sure about the GST

I doubt your employer could pay your trust unless it did some work for your employer. Maybe it did?

Some tips:
– get a part-time job now, build up some history and then go full time immediately after finishing school – you may be able to qualify for the loan straight away if your income is sufficient.
– get a cheap place to start off. COnsider getting the FHOG and living in it 6 months, then moving out and renting it while you live at home. It can still be CT exempt while allowing you to claim expenses etc
– get a IO loan with a 100% offset. never pay down the loan.
– Consider getting a job where you can learn about property. Finance is good as without loans you cannot progress very far. Do you job for a few years and then move on to another area and build up your knowledge. Building knowledge is great.
– Don't bother going to Uni, but Study for a Law degree on weekends. Will come in very handy. http://www.usyd.edu.au/lec/

BTW, you won't be able to get a loan until you are 18.

I would say that you probably could claim them – but only to the extent the tools were used in money making activity. Depending on the cost you may be able to claim some outright, with others depreciated.