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Obviously you should only consider setting up a trust if you are investing in postively geared properties.
IMO, at this stage you may be better off just purchasing properties in your own name as it appear you are earning a minimal amount of income at the moment and the next couple of years.
Once you have a couple of properties you may then consider setting up a trust. Also note that the tax effective of a trust depends on the availability of suitable beneficiaries.
It appears that in your current situation you really wouldn’t save much tax at the moment with having a trust.
Also if you purchased in a discretionary trust you would be up of land tax (NSW)immediately as there is no land value threshold if purchased in a trust. Whereas if you purchase in your own name there would be a land tax threshold.
In my opinion most property investors would be aware of land tax, as it is a tax which comes hand in hand with property investing.
Unfortunately there in no real away of avoiding land tax. Hopefully (realistically I’m dreaming) the state governments may reduce the rate of land tax as they are reaping heaps from the increase of land prices.
Don’t forget that not all principle place of residence (in NSW) is exempt from land tax, as land tax is payable on PPoR is your land value is over approxiamately $1.5 million (I can’t remember the figure off hand).
In order to apply for an ABN, you must be running an enterprise (business). I would doubt whether you would be able to legally get an ABN is you were simply investing in residental property as these are inputed tax supplies. If you were investing in commercial property then you would certainly need to apply for ABN as commercial property is an GST taxable supply.
