The usual options
- One person's name. Simple. All of the income and deductions belong to that person.
- Joint names. Joint tenants hold equally. Tenants in common can hold unequal shares, such as 70 and 30, and the income and deductions follow the shares on title.
- A family trust or unit trust. The trustee holds the property and income is distributed under the trust deed. A loss made in a trust generally stays in the trust and does not flow out to reduce a person's wage income.
- A company. Uncommon for residential investment, partly because a company is not entitled to the capital gains discount available to individuals.
- A self managed super fund. Possible under strict borrowing rules, and construction adds further complications. Specialist advice is essential.
What the choice changes
- Tax on the rent, and who benefits from any loss.
- Borrowing. Lenders assess trusts and companies differently, and not every lender will fund every structure.
- Land tax. States apply different thresholds and rates to trusts, and they are often less generous.
- Duty. Some states charge additional duty where a trust could have foreign beneficiaries.
- Asset protection and estate planning.
- Capital gains tax when you sell.
Why it has to be decided first
The purchaser named on the land contract is the legal buyer. Moving the property to a different person or entity later is generally a transfer. That can mean duty a second time, calculated on the value at that date, and it can trigger capital gains tax. Contracts sometimes allow a nominee to be substituted, but the rules for doing that without paying duty twice are strict and differ between states.
It costs far less to get the name right at the start than to correct it afterwards.
How the 2027 changes fit in
The negative gearing and capital gains changes announced in the May 2026 Budget make this question matter more, because they change how losses and gains are treated depending on what you buy and when. They were announced policy at the time of writing. A registered tax agent can tell you where the law stands and how it applies to each structure.
What to take to your accountant
- Your income and your partner's income, now and as you expect it to change.
- What you already own and what you owe.
- How long you expect to hold the property.
- Whether you plan to buy again.
- The contracts, before you sign them.
This is why we introduce the accountant early. We do not give tax or legal advice, and we do not recommend a structure.