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Buying Property in Australia Through a Company or Family Trust: Pros, Cons and the Taxes to Watch

  • November 5, 2026

Home " Legal blog " Uncategorised " Buying Property in Australia Through a Company or Family Trust: Pros, Cons and the Taxes to Watch

The direct answer: Buying through a company or family trust can help with asset protection and passing wealth down the family, but in Victoria it usually means higher land tax, a foreign company or foreign trust may also pay foreign purchaser additional duty and land tax surcharges, and the main residence tax exemptions for individuals do not apply. Whether it suits you depends on how the property will be used, where the money comes from and who the family members are, and should be worked out before you sign.

Possible benefits

  • Separating the asset from personal business risks
  • A trust can distribute income flexibly and helps with succession
  • Easier management when several family members invest together

Taxes and limits to watch

  • Land held in a trust usually attracts higher land tax rates with a smaller tax-free threshold
  • If a beneficiary or shareholder is a foreign person, the company or trust may be treated as a foreign purchaser, needing FIRB approval and paying surcharge duty and land tax
  • A company selling an asset generally cannot use the capital gains tax discount available to individuals
  • A property owned by a company or trust cannot be claimed as an individual’s main residence for the related exemptions
  • Lending terms are usually stricter than for individuals and often require personal guarantees from directors or trustees

What to check in the trust deed

Before using an existing family trust to buy property, check that the deed allows it, that the trustee has power to borrow, and whether it needs amending to exclude foreign beneficiaries. Where overseas parents provide the money, record in writing whether it is a gift or a loan.

Talk to a lawyer about your situation

Every family’s situation is different, and so are the taxes and procedures that apply. Please book a paid consultation and a lawyer will go through your situation and explain the options. Related service: Melbourne property lawyers.

This article is general information only and is not legal, tax or financial advice. Do not rely on it. Please book a consultation for advice on your situation.

重要提示: 本文仅为一般资讯, 不得作为依据. 本文并非法律, 税务或财务意见, 没有考虑您的个人情况, 亦可能未反映发布后的法律变化. 其他国家的法律也可能适用. 请勿仅依据本文采取或不采取任何行动. 阅读本文或与我们联系, 并不构成律师与客户关系. 如需针对您情况的意见, 请预约咨询.

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