JIT and bene313
It is in fact a combination of a CGT issue, stamp duty (NSW, VIC & WA), land tax and SMSF. The most important is the CGT issue...
Thanks, very interesting stuff, I wasn't fully aware of these details and the logic behind them.
The CGT Issue
I subscribe for 2,000 $1.00 each units in a newly created unit trust. The trust acquires 2 properties for $1,000 each being property A and property B. Property A does not increase in value over the next 5 years while property B doubles in value. I decide to sell property A for $1,000 due to its poor performance. I wish to get my hands on the $1,000 cash. Each unit in the unit trust is worth $1.50. I would need to redeem 666 units to get the $1,000 out of the unit trust. I make a capital gain of $333.
Chris, I'm a bit slow on the uptake here, just to be sure regarding the $333 capital gain...
This is 666 units at $1.00 each ($666) that are now worth 666 x $1.50 ($1000), so the capital gain is $1000 - $666 ~ $333... ?