Yes it could be done. many legal issues to consider though.

See RPI from this forum, he is a property lawyer based in Brisbane.

Firstly a banker should not be giving tax advice.

But he is correct in this instance (pretty rare for a banker!)

The purpose and use of the borrowed funds determine deductibility. Security for the loan doesn’t matter.
In this case you are borrowing to pay down a private loan. Interest is not deductible in this instance.

It is still possible to get good asset protection while owning a property in individual names.

Since land tax is imposed by state legilsation the rules vary from state to state. So first you should decide which state you will be looking to buy in and then decide the structure.

This is only the case where the loan is in a different name to the owner of the property.

There are a wide varieties of hybrid trusts and lending will depend on the structure and terms of the deed

Get some legal advice on this.

Jay,

Not much you can do if that is the case except:

1. earn more income
2. talk your spouse around
3. find another partner to invest with
4. speak to another broker to check the figures.

Wayne, you will probably find the spouse will want more than you want to give. Even if sshe doesnt initially once friends start talking things change.

You will also need to consider the stamp duty implications. In most states you may be exempt on a transfer on breakdown of a marriage, but may need a court order or otherwise need to convince the commissioner of duties.

Krammer wrote:

What info do you need?

What are you trying to achieve?
Why do you want to consider a trust?
What do you expect the trust to hold and/or do?

for starters

What a huge mistake. How could you not know the land was off the plan and how did you not read the contract, especially the special conditions? Did you get the lawyer to review it before signing?

JimBo wrote:

Thanks everyone, this has clarified things similar to what I was thinking. Developers don’t pay CGT, however, they pay income tax; and in this case the Company will pay the tax (capped at 30%).

Above you say a trustee is owner. So company won’t be taxed but the trust will. Tax rate will depend on beneficiary