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Is there a difference between a Private Tax Ruling and just satisfactory answers based on an ATO query? Also, how does the NickM ones contrast with the ones where the interest deductions have been disallowed by the previous private rulings? I find it interesting that the ATO will allow some...

I would imagine that if a positive ruling or similar came from the ATO, the trust experts on the forum would be the first ones to post links to it, since it will vindicate their views and increase their business (and rightly so). Their silence suggests that it's a matter of 'we're not sure yet'...

I view it another way. I think if the ATO wanted to ban ANYTHING, it will be able to find some technicality to do it. What stops them (or defeats them in the courts) is a combination of fairness and politics. Surely from a tax collection perspective the ATO would love to outlaw normal...

David, what exactly gives you this confidence? Has the ATO made a private ruling in favour of its terms? Or are the trust terms similar enough to a positive ruling that already exists? Or are you confident because your trust deed provider is competent and confident that it will be valid? I...

Sorry, I was thinking borrow money from a LOC at 7% and on-lend it to the trust at 5%. The 2% loss I take could be construed as for asset protection purposes since it gets into the trust and is protected. Alex

Julia, does this mean I am now allowed to borrow money from say a LOC and on-lend it to the trust at a lower interest rate? Alex

Thanks a lot, Julia. I see. I was just thinking whether I can sever the franked dividends with the franking credits. If I can't that's fine. That makes sense. So even though the trust nets off taxable income against losses (such as -vely geared property) because franking credits are in...

It will be, and so will I when I set up the trust (I'm going to do this after I come back to Australia to live permanently). I'm an Australian citizen, will be living in oz and my family will all file oz tax returns, etc. I know that there are lots more issues if the trust or beneficiaries...

I think I'm going to use two DTs (or, as GSJ suggested, one DT and one HDT with no units issued). Keep the -vely geared property in one, and shares in the other. Say I have shares in a DT that has $700 in franked dividends + $300 franking credits. Am I able to distribute franking credits to...

A very good suggestion, GSJ. Without any units issued the HDT functions the same as an ordinary discretionary trust. I'm thinking set up one trust for the ungeared stuff (shares, bonds, etc) and a second trust for IPs. Alex

The fact remains, though, that there is no clear ruling from the ATO regarding valuation of the units at redemption. While ATO deemed values (if, for example, the ATO deemed the value of the units to be the same value as the property itself) have no direct bearing on creditor claims, that would...

This is only based on my reading and not really a professional opinion, but I can see the asset protection and income streaming benefits of a normal DT. As trust assets grow ALL trust assets are protected by the trust structure and any lawsuits against the trustees or beneficiaries will not...

If the ATO can deem that the value of the units to be the market value of the assets, presumably creditors can as well. Which means the value of the units increase and therefore invalidates the asset protection (i.e. creditors can still lay claim to the increasing value of the asset in the...