Jay,

Not much you can do if that is the case except:

1. earn more income
2. talk your spouse around
3. find another partner to invest with
4. speak to another broker to check the figures.

Wayne, you will probably find the spouse will want more than you want to give. Even if sshe doesnt initially once friends start talking things change.

You will also need to consider the stamp duty implications. In most states you may be exempt on a transfer on breakdown of a marriage, but may need a court order or otherwise need to convince the commissioner of duties.

Krammer wrote:

What info do you need?

What are you trying to achieve?
Why do you want to consider a trust?
What do you expect the trust to hold and/or do?

for starters

What a huge mistake. How could you not know the land was off the plan and how did you not read the contract, especially the special conditions? Did you get the lawyer to review it before signing?

JimBo wrote:

Thanks everyone, this has clarified things similar to what I was thinking. Developers don’t pay CGT, however, they pay income tax; and in this case the Company will pay the tax (capped at 30%).

Above you say a trustee is owner. So company won’t be taxed but the trust will. Tax rate will depend on beneficiary

Its the ACN that is important and it is this that identifies the company.

Considered a ‘trading name’ instead of changing the company name?

Krammer wrote:

Accountant is out of state for the week and I had some questions in regards to trusts. A little background information:

– Consultant with multiple streams and yearly intake of $250-350k
– Trust hasn’t been set up yet, looking into best options to use revenue from consulting to fund property investment scheme for tax advantages
– Recent transition from 457 to PR and am able to now form a company
– No personal property

Anyone in a similar contract role and have experience to share? Which strategies should I look into for tax benefits? Most of the guys I work with always give me the “my wife handles it” brush off when I ask about their setup. Any links to further reading or information would be greatly appreciated

I specialise in trusts – what are your questions?

1. Yes it would be in the written agreement you entered with the bank. Contract and/or terms and conditions booklet.

2. This would apply to any property owned by the trustee.
There would be benefits of transferring, but also costs and ongoing issues. Lots to consider.

3. The problem is your life may not follow what you propose in the private ruling app form. Turn around time is supposed to be 28 days, but is usually longer.

Yes you can claim expenses associated with it. Even if you didn’t claim you would still be subject to CGT

1. From a corporations law point of view you may need a new director. You shoudl also consider the terms of the loan agreement – may need bank’s consent.
2. Loss of the 50% CGT discount. No income to offset any losses (other than rent). Losses may carry forward.
3. Consider if you will actually be a non resident. There is a recent case where an aussie went to dubai for work for a number of years yet he was still a tax resient here.

Best to seek tax advice on this.