Simple really

Have an offset account on your PPOR. Get all rents paid into this account and all wages and income.

Then just direct debit out to the various loans when interest is charged.

Ideally also have a LOC in there somewhere. You can then borrow to pay all expenses related to the property, except interest. This will help you save non deductible interest.

Use a credit card to pay for the expenses first and earn points and take advantage of the interest free period to save yourself even more non deductible interest. Before this card incurs interest you pay it off from the LOC (refinancing one loan with another).

Yes, BFA is really the only way to protect. Costs a fortune because of the risks involved. $2k to $5k for a simple one. These can be done pre/during/post a relationship so it is not too late.

Just because she is 'renting' this doesn't mean she cannot claim. Probably has no effect if she is in a relationship with your mate.

Of course the other option is to break up before 12 months…

Yes, if redrawn money is used for investments then little problems for the moment. Problems can occur if down the track one proeprty becomes a main residence or perhaps one property sold.

Bank will treat as one big loan. You will have the burden of apporitoning interest.

To keep it simple, so you had a $100,000 loan for an investment property.
You thought you would save interest by parking your $20,000 savings in the offset/redraw.

1. If it is an offset
You pay interest on $80,000. This is fully deductible

You later take out $20k to use as deposit on the new PPOR you will buy.
Interest on the loan is now $100,000. This is fully deductible.

or
2. If it is a redraw
You pay interest on $80,000 and this is fully deductible.

You later take out the $20k to use as deposit on your new PPOR.
This is treated as new borrowings.
Because it was borrowed for a private expense the interest on this loan is not deductible.

So now you have a loan of $100,000 but only interest on the $80,000 part is deductible.
This mistake has cost you about 5% x $20,000 = $1000 in lost deductions each year.

Furthermore now you have created a mixed loan. Your $100k investment loan is part investment and part personal. This creates further problems, especially if you were to try to pay off the private portion first – it is impossible. You would have complex mathematical calculations to do in apportioning interest and the only way to fix it would be to split the loan into 2 and start again – once you calculate the exact portions.

Imagine having an extra $1000 in deductions each year for 30 years, this would greatly help pay off your home loan sooner.

Be very wary of off the plan.

Also generally only 1 offset account is needed, unless your cash will exceed the loan amount. Or maybe the properties are going to be in different names.

Is the offset account an offset account or a redraw account called an offset? There could be a big effect if the loan is investment related.

This will only effect a small minority of people who have been getting good tax free income from their super. A superfund can earn up to $100,000 and still pay no tax, thereafter it is just 15%. So if the fund as a $200,000 profit it will pay just 7.5% just. Outside of super if a person earned $100,000 this would be taxed at 37%. A company would be taxed at 30%.

You can't use a council valuation for stamp duty purposes you will need a proper valuation done.

Why not just gift it after 01 July.  Installment contract? Option to purchase?

Why gift at all? What are you trying at acheive? Consider centrelink issues, stamp duty, asset protection, estate planning as well as CGT.

This would depend on the type of trust and the state the property is in. Fixed unit trust in NSW for instance – unit holders get the land tax free threshold.
Discretionary trust in QLD – large tax free threshold

Hi Boshie

Sounds like you on hard times. I suggest:

1. Ring credit card company and explain the situation, ask for a discount and if they can cut the debt in half and drop the rate or interest free to assist.

2. Ring/Write to the ATO and ask them to wipe the tax debt.Provide medical evidence etc. They probably will

3. stay with same lender and apply for a split loan. keep most on fixed and a small amount on variable so you can pay off if your situation changes. Ask for $20k extra to pay credit card. But try to get the cash to pay it yourself.

4. If credit card company says can't help then once the loan is done ring them again and offer to pay them 1/3 of the outstanding balance in cash within 7 days if they accept your offer. Take it up to 50% if you have too.

Good luck