You may be confusing the 50% CGT reduction which is available for assets held longer than 12 months.

For a main residence there is no minimum period in the legislation in which you must live to avoid CGT. But the main residence exemption is not available for vacant land.

But if you are building and move in as soon as practical after completion and live there for at least 3 months then you may be able to claim the main residence CGT exemption
s118-150 ITAA97
http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.150.html

Do you have the valuation?

It would be extremely dangerous for a purchaser to buy something like this on vendor finance. The bank could take the property and the purchaser left with nothing.

If a purchaser did buy then they could only transfer the title into their name if the vendor is able to pay out the mortgage. Or if the bank is willing to take a hit.

They would also need to qualify for finance on their own – which wouldn't be easy with a vendor finance deal.

Your mum would be a beneficiary of the trust and the appointor so it would affect pension.

The proceeds of the sale should probably be made out to the trustee of the trust – which name is the trust bank account in? Seek legal advice first.

Its not the trailing commissions that is the problem but the fact that most banks will require the broker to give back the upfront commission if the loan is discharged within a certain period. One lender this period is 3 years, most it is 18 months.

Purchase?
Is there a real estate agent involved?
LVR?

You must also expect to pay brokerage for such a deal as the broker will make no money from the lender.

If you consolidate then you will be joining both loans together. You can also get a separate amount of credit available, this is best done as a separate split.
 

TD51
Capital Gains: What factors are taken into account in determining whether or not a dwelling is a taxpayer's sole or principal residence?
http://law.ato.gov.au/atolaw/view.htm?locid=cgd/td51/nat/ato

This document has now been withdrawn.

But you can still view it here
http://law.ato.gov.au/atolaw/view.htm?docid=CGD/TD51/NAT/ATO/00001&PiT=19920326000001

you will gets some idea

Wow

Firstly, trusts won't help you are all with family law type asset protection – usually. This was found out by one of Australia's leading trust experts a few years, a barrister called Dr Spry.

A bare trust is one where the trustee has no powers. A just holds the legal title for B.

Your situation is messy and you need legal advice. Simplest would be just to leave as is and open a new account and deposit the cheque in that or get the cheque made out to your mum.

You also need to look at the trust deed and see if someone else is able to hold trust assets.

Also, I hope you mum is not going to be getting the pension anytime soon as all this will affect that.