@marty – I was told by an accountant that withholding as late (May, 2013) as possible is common practice. Having said that, you would get a lump sum Tax bill in May, 2013 of $50k for example then another $50k again due in June, 2013. Bit rough.

@luke – I bought my IP then went into contracting within 5 months. I asked to top up to renovate for $20k and got rejected even though I am getting double of what I was with full-time. They wanted more payments and Tax Assessment. If you’re looking at IP in 12 months then you should be ok. You might get a higher interest rate though.
Pty Ltd might be better as you’ll be paying yourself a constant amount each month like a full-time employee whereas agency will pay based on hours you do so it might fluctuate if you take time off. I think banks like to see consistency. If you’re not sure best to speak to your bank and see their criteria.

I like having funds available "just in case"

So I would use my savings to pay off hecs but increase my IP offset account by approximately the same amount so I have access to this money – even though I may not use it immediately.

Does that make sense?

For the purposes of this exercise, let's assume that the additional credit on the investment loan is for "renovation" purposes.

No cap gains tax.

Terry, yes!

Are my figures right and have I missed anything?

What would tax be?

That's perfect – thanks a lot!

No worries Michael,

5-years for last 12-months.

Cheers,
Vucko

Yes – ignore the 2-month notice; I was reading the wrong information.

Has your family signed an agency agreement with the agent so the agent will look for a replacement tenant? If there is no signed agency agreement the agent is quite happy to take your money until the expiry of the lease.

I don't believe they have signed anything but they were just told they will have to pay lease until the place is re-let.
Can you elaborate on this?

I'll start with by contacting VCAT and explaining the above.

But at this stage we would rather pay a small amount rather then $1500/month.

The leasing company just keeps saying nothing they can do and that "winter is a slow time for getting tenants"… terrible!

My income should tripple by then if not more, I will be married so two incomes/security, and worst case scenario sell current property.

Hi Maggie,
Thanks for your reply.
Can you please PM me your e-mail address and your details and I will contact you.
Cheers.