Property

Unit trusts have traditionally been used to hold property and other assets with a view to changing the ownership by changing the unit holder. They are also used for negative gearing and with self managed superannuation funds.
Unit Trusts

Hybrid Unit Trusts are unit trusts with the added feature of allowing for the issue of special units. The rights and restrictions of special units are contained within the application and unit certificates.
Hybrid Unit Trusts

Unit trusts have traditionally been used to hold property and other assets with a view to changing the ownership by changing the unit holder. They are also used for negative gearing and with self managed superannuation funds. One of the disadvantages of a Unit trust is that for Land Tax purposes they are classified as a “Special Trust” which results in loss of the Land Tax property value threshold. As a consequence annual land tax costs in NSW can be as much as $6,012 more expensive than is the property were to be owned by individuals.
NSW Land Tax Unit Trust

Following various rulings and statements issued by the Commissioner, a great deal of caution needs to be exercised in establishing and operating Hybrid Discretionary Trusts.
Hybrid Discretionary Trusts

Using a Hybrid Discretionary Trust to acquire income-producing assets.
Warning – Hybrid Discretionary Trusts

The popularity of discretionary trusts is largely due to their asset protection and family succession qualities. They also provide a wide range of taxation and other benefits to those who use them widely.
Discretionary Trusts

Self Managed Superannuation Funds can now borrow to invest in real estate. Much care needs to be taken in setting up and running a self managed superannuation fund.
Self Managed Superannuation Funds

One of the most overlooked issues involving instalment warrants is the capital gains tax consequences where a beneficiary of the warrant (the trustee of the self managed superannuation fund) is not absolutely entitled as a against the custodian ( the trustee of the warrant trust). A capital gain is triggered when a beneficiary becomes absolutely entitled as against the trustee to a CGT asset (sec. 104-75 ITAA 1997).
Instalment Warrants and CGT