Have a Family trust set up, what next ??

Please get proper advice before you do that.

Firstly there will be little asset protection, especially in the early years, because of the clawback provisions of the bankruptcy act.
Land tax may also be payable where it otherwise wouldn't be. If you will continue to live in the house, then there are many legal implications involved as well as tax implications. And losses of the trust cannot be used to offset personal income.

So, firstly I would see a lawyer. You will need them to do the conveyancing too. You will need to transfer from yourself to the trustees (even if still yourself), discharge loans and then reapply again. so you may be up for buy/sell conveyancing fees, loan exit and application fees, stamp duty and valuation fee (for stamp duty).

You will also lose the main residence CGT exemption.

I guess you could do the conveyancing yourselves. You are basically buying off yourself so you wouldn't need to do the usual checks etc. Just a transfer.

Land tax will depend on which state the property is in. If NSW then 1.6% tax of the value of the land will be applied for trusts with no tax free threshold.

The bank must release the property as security or you will not be able to transfer title. One of the problems with cross collateralising. What you could do is to move the existing loans over to the property once the trust owns it. Then you have legal issues such as is the trustee acting in the best interests of the beneficiaries by allowing one beneficiary to use trust property to secure a loan.

Steps would be, roughly,

Get your trust deed stamped, ABN, TFN etc
Apply for finance as trustee for the trust.
Arrange the transfer document to be filled in.
Check with OSR if they need a valuation for stamp duty purposes, and then order if necessary
Arrange to have the loan discharged and substitution of security if necessary.
Work out payout figures, collect a deposit from your trust, pay stamp duty, notify council etc of change of ownership

Villas would be counted. Land tax is payable on the land component only. Main residences are usually exempt and investment properties up to a certain value are exempt. I am not sure of the rules for WA, but in NSW there is no exemption for trusts.

eg. In NSW  you owned a house worth $500,000 with a land value of $300,000 there would be no land tax payable, where is if this was held in a trust then 1.6% pa = $4800 would be payable every year. Huge impact.

a. Stamp duty is a capital expense, so it could only be claimed against any CG when sold.

b. Depends what you mean by "we". You as an individual cannot claim interest on loan the trustee takes out to purchase trust property. The trust would claim the interest. If the trust is a unit trust and you  borrow to buy the units you may be able to claim the interest.

c. any expenses relating to the purchase or operation of an investment property can be claimed  – by the owner of the property.

Just think of the trust as a separate person (for tax) – that will make it easier to get your head around.

If the trust is purchasing a rental property then the stamp duty could be deductible against the capital gain when sold. if a person is selling to the trust then the stamp duty may be deductible against any capital gain if it was a rental.

Just think of the trust as a separate person – which it is for tax purposes (but not legally).

If a person buys a property and rents it they can generally claim the interest. Generally they can also claim the expenses too.

If the trust is renting the property to a beneficiary or trustee just be careful and get your accountant's advice first. There is a chance the ATO could claim it is a scheme.

Also bear in mind that if your trust has no other income it is probably going to have losses – which won't be offset and these will need to be carried forward. This may also mean you need to make a family trust election too.

Some expenses such as carpet etc would be capital expenses, so you would have to depreciate them – the trust that is. Same with painting too i think.