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This sounds like an ownership structure rather than structuing the loans. It is generally not tax effective to buy a residence in a trust if it will be the main residence as there is no main residence CGT exemption and often land tax payable even if living in it.

Yes probably as long as the other criteria are met: - less than 2 hectares in land - no income producing - no other property counted as the main residence at the same time.

Slight correction above in bold.