The essential structure for Western Australian property investors. The WA Property Trust unlocks a second, independent $300,000 land tax threshold for the trustee — separate from your personal assessment — while preserving SMSF co-investment, stamp-duty-free transfers up to $2 million, and the ability to convert non-deductible debt.
The most important issue when investing in Western Australian residential real estate is flexibility — what you can do with the property in the future. Over 90% of investors acquire property in the wrong structure, permanently closing off critical options that may be needed years or decades later.
Individual ownership, companies, partnerships, and discretionary trusts all fail in different ways — removing one or more of the four key investment strategies before you have even considered whether you need them.
Only the WA Property Trust keeps all four critical strategies available: land tax threshold, stamp-duty-free transfer, SMSF investment, and debt refinancing to deductible interest.
Property is held by the trustee — not the individual. Unitholders are protected from personal creditor claims while retaining the full economic benefit of their investment.
Unitholders may borrow personally to acquire units — interest on that borrowing may be deductible — while the trust structure delivers land tax and asset protection benefits simultaneously.
The WA Property Trust can issue ordinary and special units — allowing third parties to participate in special financing arrangements for minor developments alongside existing unitholders.
Each step below represents a strategy permanently foreclosed when property is acquired in the wrong structure. The WA Property Trust preserves all six.
Most property investors see their investment as "providing for their retirement." The decision to transfer to an SMSF may occur at some distant future date — by which point the opportunity is permanently lost if the wrong structure was chosen. If held in an individual's name, discretionary trust, hybrid trust or company, the SIS Act prohibits the SMSF trustee from acquiring the residential property. A unit trust acquired from an arm's-length party allows the SMSF to acquire units once the trust is debt-free and assets are not used as security.
Transferring a property between family members or to an SMSF directly triggers ad valorem transfer duty. A unit trust changes this: in WA, where the unencumbered property value is below $2 million, issuing units to a new entity and redeeming from the old entity does not attract transfer duty. For example, redeeming individual units and issuing to an SMSF trustee on a $1,600,000 property — no stamp duty applies. This threshold is significantly higher than the VIC equivalent.
Converting non-deductible personal debt (such as a home loan) to deductible investment debt requires an equity position that is not direct ownership. When the trust trustee borrows funds to redeem units from a unitholder, the interest on that borrowing is deductible — confirmed in FCT v Roberts; Smith 92 ATC 4380. This strategy is entirely unavailable to individual owners, company owners, or partners. A unit trust or hybrid trust is required.
Investors currently holding property subject to WA land tax gain access to a second independent $300,000 threshold. The WA Dept of Treasury & Finance Land Tax Guide confirms that land owned directly by an individual is not aggregated with land in which the individual holds an interest through a trust. The trustee is assessed separately — meaning the WA Property Trust effectively doubles your threshold-protected land value.
MGS recommends each investment property be held in its own WA Property Trust. This maximises each property's access to a separate $300,000 land tax threshold; avoids the CGT complication of realised gains when one property is sold and another retained in the same trust; and allows individual SMSF refinancing strategies as each property becomes unencumbered on its own timeline.
If the unitholder has borrowed personally for negative gearing, the SMSF may still invest provided the trust asset is not being used as security for that debt. Over time, other assets such as the family home can be substituted as security, and salary sacrifice contributions can then reduce the debt at the concessional 15% SMSF tax rate — accelerating the pathway to full SMSF unit ownership and the tax concessions associated with superannuation.
The comparison below shows which structures preserve all four critical investment pathways. Only the WA Property Trust achieves all four simultaneously.
| Structure | Land Tax Threshold | Change Owner (No Stamp Duty) | SMSF Can Acquire | Refinance to Deductible |
|---|---|---|---|---|
| WA Property TrustRECOMMENDED | ✓ | ✓ ¹ | ✓ ² | ✓ |
| Company | ✓ | ✗ | ✓ ² | ✗ |
| Individual | ✓ | ✗ | ✗ ³ | ✗ |
| Partnership | ✓ | ✗ | ✗ ³ | ✗ |
| Hybrid Unit Trust | ✓ | ✓ ¹ | ✗ ³ | ✓ |
| Discretionary Trust | ✓ | ✓ ¹ | ✗ ³ | ✗ |
Each MGS WA Property Trust is prepared specifically for Western Australian property investment under the Land Tax Assessment Act 2002. The kit includes everything required to establish the trust, administer unitholdings, and position each property optimally for SMSF co-investment and land tax efficiency.
MGS recommends establishing a separate trust for each investment property — maximising access to the independent $300,000 WA land tax threshold and preserving individual SMSF and CGT strategies for each asset.
For specific WA land tax and structuring advice, consult a qualified WA land tax specialist.
Under the WA Land Tax Assessment Act 2002, the trustee of a trust is assessed for land tax separately from the individual unitholders. The WA Dept of Treasury & Finance Land Tax Guide confirms that land held directly by an individual is not aggregated with land held through a trust in which that individual has an interest. This means the trust property has access to its own $300,000 threshold — in addition to your personal $300,000 threshold — effectively doubling your threshold-protected land value in WA.
The $2 million threshold reflects the WA Duties Act provisions applicable to unit trust transfers. WA's higher threshold means the stamp duty saving strategy is relevant for a much broader range of properties than in VIC (where the limit is $1 million). For example, a WA investor with a $1,600,000 property can redeem units and issue them to an SMSF trustee with no transfer duty — a transaction that would attract stamp duty if attempted via direct ownership. The threshold applies to the unencumbered value of the property at the time of transfer.
Provided the trust asset is not being used as security for the personal borrowing, the SMSF may still invest. This distinction is critical: the SIS Act prohibition relates to assets being subject to a charge, not to the existence of personal debt by the unitholder. Over time, the family home or other assets can be substituted as security, and salary sacrifice arrangements into the SMSF can reduce the debt at the 15% concessional tax rate — making SMSF ownership achievable faster and more tax efficiently.
MGS strongly recommends against it. A single trust holding multiple properties aggregates their land values — reducing threshold access. If one property is sold, the capital gain is realised in the trust and affects all remaining properties held in that trust. The SMSF acquisition strategy requires the trust to be entirely debt-free; with multiple properties, one may remain encumbered indefinitely, blocking SMSF investment in any of them. One trust per property is the optimal and recommended structure.
Transferring an existing individually-held property into a trust can trigger CGT event A1 and WA transfer duty at ad valorem rates. The WA Property Trust structure is most beneficial when established before the property is purchased. If you already own a property personally and wish to restructure, specific advice on the CGT, stamp duty and land tax consequences must be obtained before taking any action. In some circumstances — particularly where the future SMSF strategy or land tax saving justifies the upfront cost — restructuring can still be worthwhile. Contact MGS for a consultation.
Yes. The WA Property Trust is capable of issuing both ordinary units and special units with entitlements determined by the trustee. This feature may be used for introducing third parties who participate in special financing arrangements as part of minor developments. Any issue of units to an SMSF must still satisfy SIS Act and SIS Regulations requirements regardless of the class of units being acquired.
Your message has been sent and a member of our team will respond to your inquiry soon.
If your matter is urgent, please call us on the phone number listed above.