Thanks for all the input everyone.

Jamie – yes, my husband is the sole income earner, so I do understand where he's coming from.

Chris – thanks for your input.  My husband and I do work quite similarly, where I do all the research and then we proceed together.  I guess one of the other issues is that I just didn't think we'd get more finance without me working, but seems I thought wrong

Dark Knight – not buying high price properties as while I'm not against this, our borrowing power and the cash flow position of the property will ultimately dictate the property we purchase (together with all our other thoughts following research etc of course, this wouldn't be the sole factor)

Time to get things moving!

Thanks Jamie, that could be a good spin off business for you   My husband does generally leave the finances up to me, so while that's OK, it also means a bit more pressure that I don't make the wrong decision.. Big decisions are made together of course, but normally after I initiate it all and he feels comfortable.

I'm determined to at least figure out what our options are, so really appreciate the input.

I do appreciate that if someone was working and then entitled to a tax deduction due to a rental loss in order to get FTB that would be taking two bites of the cherry.  I guess as I see it, I earn nothing and my net rental loss is useless to me and is still halving my entitlement. 

Since my tax is so simple, I'm just doing it myself, but have decided to declare all the expenses.  I'd rather stay on the right side of the Commissioner!

Thanks Terry.

As I don't have any income at present, apart from my share of a net rental loss, I want to ensure it remains under the FTB income threshold of $5183, as net losses are counted as income for this purpose.  So for me, it wouldn't matter about a higher level of rent.  I think I'll be under the threshold anyway, as I expect the loss to be about $4K, but was curious as to the legality of not claiming expenses.  I don't think it could be caught under Part IV as I'm not avoiding tax, just trying to maximise FTB

Thanks for your response Jamie – the sole reason he is refinancing is to get a better rate.  I believe he will be saving about $5000 pa in interest (if I recall correctly).  The costs to refinance each loan will be about $500-600, so justified based on the interest savings (ignoring all other factors and considerations mentioned).  He has previously paid LMI, but I think he is now reassessing his future plans to continue to accumulate investment properties, as he has started a family with his wife and is considering selling up to purchase a PPOR.  I really think I will now press him to see an expert BEFORE he proceeds with the refinance. 

Thanks Wilko and Terry again.  I'm certainly no expert as I said, so I'll be sure to get him to seek some expert advice with all of this 'restructuring'. 

I'd be open to any suggestions for someone in Melbourne that he can see in this regard.  He's based in Kingsville and works in St Kilda Road.

Thanks everyone again for your help!  I just know I'm going to learn a lot on here

Thanks Grant.  I'll definitely be passing all of this on to him!

Thanks Terryw, would you be happy to expand further on some of the key issues regarding tax and asset protection.  At the moment all the properties are in his name only, so I wouldn't have thought he'd be afforded any real asset protection now with the current structure anyway.