Safest way would be to pay market value and transfer title.

Based on what you have said about it would probably not be worth doing for a few reasons:

1. Stamp duty on the onsale to the trust

2. Less asset protection because you are transferring

3. Your top tax rate is 32.5% whereas  a company would be 30%

4. Good idea not to have the trustee as a beneficiary for stamp duty reasons, in NSW at least.

5. When selling it would be be best to get the gain in your own hands rather than a company as individuals pay only at max of 45% tax, less the 50% CGT discount = 22.5% plus medicate levy. If you distribute to a company 30% with no 50% discount.

If one property in one name it could have enabled you to split the capital gain between the both of you, but I think it would be too late to implement now.

And just because the valuation has come in short doesn't mean you can get out with the finance clause either. Has the finance been rejected?

You can't break the law just to get $20k.

Look up the FHOG Act and you will see the definition of "spouse" – which may be in another act such as the Acts Interpretation Act. Then see if you meet the definition. If you are not living together in a domestic relationship then you will probably not be spouses and would probably still qualify.

If the trust makes a taxable income after expenses then tax will be payable. Who pays depends on the terms of the deed and when the beneficiaries become 'presently entitled' to the income. This can occur before they actually receive the income. “Presently entitled” basically. means a right to demand immediate payment of the income.

If no one is presently entitled then usually the trustee would be taxed, or maybe default beneficiaries depending on the deed.

Perhaps it is a temporary thing until the sinking fund reaches a certain level.

You need advice to set up the structure.

You cannot transfer your super into a trust unless you have met a condition of release. But if that is the case why would you as the CG and income inside a superfund would be exempt from tax at that stage.

You have to look and see if the body corporate has the power to issue these contributions. If so then you have to pay.

Sorry, don't mean to alarm you but Its too late now. You have set it up all incorrectly and The ATO can deny the deductions. See the case Domjan.

You can't borrow money and put it into a savings account – well you can but the interest will not be deductible because it is not investing. Mixing it with cash makes it even worse as you can't trace the borrowed funds.

It is like taking some milk and storing it in a class of orange juice and then saying you will take the milk out later to make a cup of tea.

What was in the contract you signed? Did you see any strata searches or conduct any?