Your structure options
| Structure | Often chosen for |
|---|---|
| Personal name | Simplicity; access to the 50% CGT discount |
| Company | Flat company tax rate on retained profits; separation from personal affairs |
| Discretionary (family) trust | Flexibility distributing income; asset protection |
| Unit trust | Joint ventures between unrelated parties |
| SMSF | Business owners buying their own premises for retirement |
These are general points only — the right structure depends on your situation, so get advice from your accountant before buying.
How lenders assess a company purchase
- Trading company — two years of company financials and tax returns, or alternative documents for low doc loans.
- New or holding company — the lender relies on rental income plus the directors' personal financial position.
- Guarantees — directors usually guarantee the loan; trusts need the trust deed reviewed.
Get the order right
- Decide on structure with your accountant.
- Set up the company or trust (and ABN/TFN, GST registration if needed).
- Get finance pre-approval in that entity's name.
- Sign the contract in the correct entity's name.
Signing in the wrong name and changing it later can mean paying stamp duty twice — one of the most expensive mistakes we see.