NM,

I wouldn't like to say too much public, but you could have utilised a dsicretionary trust and possibly a post death testamentary discretionary trust depending on the circumstances.

hi Karl

A LOC is no good for a normal loan. In fact it can be very very bad if you were to use one on your home and to later rent it out.

What is ideal is this:

$100,000 home

$80,000 loan. This can be IO or PI with 100% offset account. All rents and incomes go into this account.

After your home grows in value:
$200,000 home value
original loan is $80,000
now you can set up a LOC for $80,000

You must never use this LOC unless it is for a new investment property.
 you buy a $100,000 IP
Loan is $80,000 interest only with the remaining $20,000 and stamp duty etc costs coming from the LOC.

Many tax issues with LOCs. You should avoid them for general use and only use then to access equity for further investments.

It should be just a mathemetical calculation in that case???? Which is larger 0.05% of the loan or $395?

ATO has a new online 'calculator' on GST
https://expertsystems.ato.gov.au/scripts/net/GSTProperty/Introduction/GSTPropertyIntro.aspx?Task=da80fe99-4af2-4f1c-87e8-e0c361999fb6&NavGraph=Home&View=HomeView&PID=68&ms=Tax%20Professionals

Refinancing won't help with CGT though

This is the date for that the land tax in NSW is calculated on. So buying on 1 Jan instead can mean you have 1 year without having to pay.

Anthony, Yes read that ruling and it makes it clear that it woudn't be possible.

I am surprised that this Fin planner put it in writing in his statement of advice even though it is clearly prohibited. he didn't know about that ruling it seems.

He has also suggested that my friend use the recontribution strategy to bring down the taxable component of his super. This is a good strategy as he has no tax dependants so his adult children will pay tax on any taxable component of his super that they receive as death benefits.

But the fin planner is suggesting he contribute $450,000 in one year by bring forward 3 years of $150,000. However my mate is over 65 so I beleive the bring forward part is not available and he will be limited to $150,000 pa while still working and under 75. Excess constributions  can have serious consequences. excess can be taxed at 46.5%! $300,000 x 46.5% = a lot.

Business names are different to trusts. A name is not a legal entity and is really just a name. eg you can trade as ris4rob if you register this name – but the entity will be yourself. or you could set up a company ALB Pty Ltd and have this trade as ris4rob.

There are many issues surrounding structures with lots to consider. What you may be referring to is to set up a company and then have this act as trustee for a trust. This will not help you increase borrowing power, but should be looked into for other reasons.

Thanks Anthony. Very interesting. Do you think the ss3 about entering into a scheme could apply?