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A unit trust could possible change into a discretionary, depending on how it is drafted. Stamp duty and cgt issues. Could be exempt from stamp duty in some instances in some states but CGT would apply.

Needs to be fixed for the land tax threshold - the unit holders will be considered owners in proportion to their ownership of units.

ok. but is that trust a fixed trust?

The basic principles of deductibility are that for the interest to be deductible it has to be borrowed for income producing investments/business. But it also has to be a commercial arrangement. So would you borrow to to invest in a rental property where there is no right to receive rent? or...

Set up costs would be the same. Depending on the terms no interest or oly partial interest would be deductible to the unit holder. The trustee must have no disretion over income or capital while the units are issued. saying the word "hybrid" to a lender makes them poo their pants. It can also...

Trustee of the unit trust purchases property on behalf of the beneficiaries under the terms of the trust deed. A unit trust is a trust in which unit holders have fixed entitlements to the income and/or capital of the trust. The beneficiaries are unit holders. A unit holder could be a person, a...

I did a consult yesterday for someone who wanted to buy in companies. His idea was that the company can retain income and cap the tax at 30%. I pointed out 2 problems: 1. No CGT discount His argument was that no intention to sell. So that won't be an issue. My counter arguement was that...

no. And i would suggest you don't gift... sell at full market value.

You have a wide variety of ownership structures and structure of structures to consider. The owner of the property doesn't necessarily need to be a 'trust'. eg. buy in low income earners name and dump cash into the offset. e.g buy in Vic in name A and then sell to name B (no stamp duty)...