Don't know, but they wouldn't be of much use anyway. You really just need an application form.

Hi Mu

Funny how this site converts the http address. I had to do some searching, but found it, TA 2008/3.
http://law.ato.gov.au/atolaw/view.htm?DocID=TPA/TA20083/NAT/ATO/00001
or click here

While searching for the correct address, I came across a few other interesting links on HDTs.

Using hybrid trusts – advanced tax planning or tax nightmare?

http://www.ntaa.com.au/download.asp?RelatedLinkID=169 or click here

EDITED VERSION OF NOTICE OF PRIVATE RULING Authorisation Number: 28993
http://www.ato.gov.au/rba/content.asp?doc=/rba/content/28993.htm
Click

I would say it depends.

As the trust will be being the property, the trust would get the deductions normally. If the trust only has rent as income, then there will probably be a loss. This loss cannot be distributed to your personal income.

A way around this is to use a unit trust and borrow to buy the units, but these have many disadvantages.

It is getting harder and harder to get finance. Many of the specialised lenders have gone and No Docs are getting scarce with Low Docs also getting harder to get. Pretty soon there will only be the major banks left. Less competition means higher rates and fees. If it is harder to get finance, then less people will be able to purchase property which will affect prices too!!

From a tax pov, you may still have to pay CGT on this property if you sell in the future, but it should be limited to the increase in value while it was rented. So it may be a good idea to get a valuation on it done when you move in (tell the valuer you want a conservative one done!).

If you think you will ever move out of this one and rerent it, then it would be best not to pay down the loan on it, but to put the proceeds on the sale into a 100% offset linked to the new home. Better for tax reasons if you rent it out again.

Each person on the title must be on the loan, but sometimes a title can be in one name with the spouse on the loan as well.

I agree. You are buying someone's half of the property, so you will need a new loan to do this. Maybe you could try to ask if they can keep your 50% portion of the original loan at the same rate?

I personally wouldn't buy under my own name. Use a trust everytime – but it depends on your circumstances. Trusts may have to pay more land tax and they cannot distribute losses.

http://www.ato.gov.au has the CGT booklet available for download. I think there is also a CGT calculator on there somewhere.

I think it works like this.

Profit $50,000
less buying and selling costs etc of $8
= $42,000
50% discount = $21,000
This $21,000 is then added to your other income.

So if you were on the top tax rate you could pay a max of $10,500 in tax – but it is probably much less.

Hi Harry

But your units would still be at risk, and hence the property if you are ever sued.

Since you run a business through a discretionary trust you should not be too much in need to personally deducting interest on the property loan. You could form a new Discretionary trust and buy the property in this. There would be a loss and no tax saving, normally, but if you have another DT, it could distribute to this new trust first to offset the loan and then any income left could be distributed to family members.

This would result in the same tax savings and give you asset protection – but could result in more stamp duty depending on the state in which your properties are in.