Buying investment property: personal names, a trust or a company?
The structure you buy in is the one decision you cannot easily change later. Here is how the options compare after the 2026 reforms.
Published
Every week someone asks us whether they should buy “in a trust”. The honest answer is that it depends on four things: your income now, your income later, your exposure to risk, and what you intend to do with the property. The 2026 tax reforms added a fifth.
The options compared
| Personal names | Discretionary trust | Company | |
|---|---|---|---|
| Losses | Against other income (subject to the 2026 negative gearing limits) | Trapped in the trust | Trapped in the company |
| Capital gains | Indexation and 30% minimum tax from 1 July 2027 | Flow to beneficiaries; same new rules for individuals | Taxed at company rate; no discount |
| Asset protection | Limited | Strong, if set up properly | Moderate |
| Victorian land tax | Individual rates and threshold | Trust surcharge rates generally apply | Company rates |
| Cost and admin | Low | Set-up, annual accounts and trust deed | Set-up, ASIC fees, annual accounts |
| Main residence exemption | Available | Not available | Not available |
When personal names make sense
For a single investment property that will be cashflow negative, held by people on high marginal rates with low personal risk, personal names are often the right answer. If the property was acquired before 12 May 2026, or is an eligible new build, losses can still reduce your taxable income.
When a trust makes sense
Trusts suit positively geared properties, families who want to distribute income to lower-income members, and owners with professional or business risk who need asset protection. The trade-off is that losses stay inside the trust, and Victorian land tax for trusts is generally higher.
Watch this space
Treasury released a consultation paper in July 2026 on a minimum tax on discretionary trusts from 1 July 2028, including changes to how franking credits and corporate beneficiaries are treated. It is not yet law. Anyone buying property in a trust today should model both the current rules and the proposal.
When a company makes sense
Rarely for residential property held long term, because companies have never received the CGT discount. Companies can suit property development or short-term holds where the gain is effectively trading income.
Don’t forget the lending
Lenders assess trusts and companies differently, usually requiring personal guarantees and sometimes different pricing. The structure has to work for the bank as well as for tax — which is why our accountants and brokers look at it together.
The cost of getting it wrong
Moving a property from personal names into a trust later is usually treated as a sale: stamp duty on the transfer and capital gains tax on any growth. The cheapest fix to a bad structure is the one you make before you sign.
Common questions
A trust can claim the deductions, but net losses stay in the trust and cannot be distributed to beneficiaries to offset their salary. They carry forward against future trust income.
Sometimes. It depends on whether the property will be positively geared, your asset protection needs and land tax. For a single negatively geared property held by high-income earners, personal names often win.
Usually only by selling it to the trust, which typically triggers stamp duty and capital gains tax. Decide before purchase where possible.
Sources
- Holding Redlich — status of Budget 2026–27 measures, including the proposed minimum tax on discretionary trusts (July 2026)
- State Revenue Office Victoria — land tax rates for trusts and companies
General information
This article is general information only, current as at October 2026. It is not tax, legal or financial product advice and does not take into account your objectives, financial situation or needs. Obtain advice specific to your circumstances before acting.
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