Nope. Trusts do not get ACNs because an ACN is an Australian Company Number and only applies to companies.

Standard practice. It is not handed over to the purchases until the cheques are received.

Joe2030 wrote:

Thank you, Terrw.

“Do not redraw funds and place into an offset as they will not longer be borrowed funds.”

Sorry, I am not clear to me this. Can you elaborate about this?

Interest on money borrowed to invest can be deductible under s8-1 ITAA97.
But borrowing to place into a savings account means the money is no longer borrowed money, but cash. If this cash is later invested the direct connection between the borrowing and the investing is not there.

There is an argument that the funds can be traced to the loan. However if the savings account contains other funds then the loan will be mixed and certainly all the loan interest will NOT be deductible.

Don’t do this without getting tax advice.

an offset account is a savings account and not a loan so your loan balance will not change if you withdraw money/. No effect on LMI.

Even if you pay the loan down and use redraw (not a good idea usually) then this won’t effect LMI at all either.

You will only incur LMI if you borrow more than the original amount and the LVR is more than 80%>

A development involves making something and selling it. properties in this case. Similar to a gadget maker making something to sell – trading stock and/or income tax. Capital gains tax applies to certain assets that are bought to hold longer term with the aim of producing an income from the property and the later sale being incidental.

prob not. many issues involved. GST?

virtually all lenders lend to trusts.

Yes. prepaying means paying in advance. The loan will be fixed for the next 12 months so no payments will be due until the expiry of the 12 months.

Do you have a main residence? If so then I would pay this off. If not then I would buy one. You can then leverage off that.

Get some legal advice on structuring things for tax effeciency and also asset protection.

If the SMSF purchased the unit outright it would be using up its cash so may not be able to afford a second unit withtout further extra contributions.