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Hi Julia is referring to the costs that you pay in relation to your IP. That is, the interest, council rates, insurance etc. If your employer reduces your salary to take pay for these costs as a salary sacrifice arrangement then you pay less tax during the year. Your employer gets to...

HI GP Excellent! Yes, I have a copy of that same article. Quite an interesting read. NickM, Coasty Mike, Mry and myself have been comparing our thoughts, processes and understanding of exactly how a HDT works over the last week or so. We have asked both Chris Balalovski of Macquarie...

Hi Bort Yes, the trust can borrow money against its assets (one IP or many IP's) and redeem the units from the SIU holder. The trust can then claim the interest on the loan used to do this. The redemption price must be, in accordance with the trust deed rules, at least as much as was paid...

Hey GP A capital gain is defined as part of the income of the trust and therefore if the trust has issued SIU's then that CG will also be distributed to the unit holders as part of the overall trust income. This is as opposed to the trust distributing its capital (IP's; shares and other...

Hi I guess the nature of the property investment is your answer. Rents might start at a 4 to 5% yield, but, over time the rents will rise and the SIU holder will receive more and more distributions because of this rent rise and because the depreciation deductions will fall away. For...

Good morning Ronin I think that one of the reasons why so many of us are struggling with this issue is that you describe potential situations that are not just not possible for a well written and well used HDT. Believe me when I say that none of us are interested in breaking the law...

There has been a mention that Part IVA could be a deterrent to considering a HDT….. I tend to agree with James on this point. Most times that we see Part IVA mentioned it is because an accountant does not understand something properly; wishes to protect his/her own bum; or just wishes to...

Hi I must apologise. You see, I am not as clever as most of the people on this forum and so I have to keep things incredibly simple to be able to cope in a complex world. My apology is because I did not keep things simple when discussing this topic. I tried to be clever and so did not...

Hello Ronin I believe that we will eventually agree to disagree....and in doing so, will have heard further thoughts and opinions from each side to give us both further understanding. I am not sure that I completely follow your thoughts. The tax office have no problem with people...

Good morning Ronin Welcome to the forum and thank you for the robust discussions that you have started on hybrid trusts. I must admit, the people that Coasty Mike has mentioned are probably the best examples of where to find "expert" information on these structures. In addition, can I...