Yes, investment property can be bought through a trust in Australia, most often a discretionary (family) trust or a unit trust. The trustee holds the property for the beneficiaries. Trusts can offer flexibility over who receives income and some separation of assets, but the 2026 Budget changes, land tax and borrowing rules have narrowed the case, so the structure needs advice before you buy.
The ownership structure is best decided before purchase. Liviti's strategy team plans property purchases alongside your accountant and lawyer, who set up and advise on the structure itself.
Key takeaways
- A trust is an obligation on a trustee to hold property for beneficiaries; the trustee can be a person or a company.
- From 1 July 2027, the 50% CGT discount for individuals, trusts and partnerships is replaced by cost base indexation and a 30% minimum tax on capital gains. This is now law.
- A 30% minimum tax on discretionary trusts from 1 July 2028 has been announced but is not yet law.
- In NSW, discretionary trusts, and unit trusts that are not fixed trusts, are usually "special trusts" for land tax: no threshold, and a flat 1.6% rate.
- Structuring is legal and tax advice; this guide is general information only.
How buying property in a trust works
The ATO describes a trust as "an obligation imposed on a person or other entity to hold property for the benefit of beneficiaries." A trust is a relationship rather than a legal entity, but it is treated as a taxpayer for tax purposes.
- The trustee holds the property and can be one or more people, or a company (a corporate trustee). The trustee must deal with the property as the trust deed sets out.
- The beneficiaries are the people or entities the property is held for.
- The trust deed sets out the rules of the trust, including who can benefit and how.
Under trust law, trustees are personally liable for the debts of the trusts they administer, and are entitled to be indemnified out of the trust property for liabilities properly incurred. Under tax law, the trustee registers the trust, lodges its tax returns and pays some of its tax. Source: ATO, Trusts, trustees and beneficiaries.
Types of trusts used for property
- Discretionary (family) trust: the trustee decides each year how income and capital are distributed among the beneficiaries.
- Unit trust: beneficiaries hold units, like shares, and receive income in proportion to their units. Often used when unrelated parties invest together.
- Hybrid and other trusts: combine features of both and depend heavily on how the deed is drafted.
"Property trust" is also used for listed property trusts, or real estate investment trusts, which are funds traded on the stock exchange. Those are financial products, not a way of owning an investment property directly, and are outside the scope of this guide.
What the 2026 Budget changed for trusts
Capital gains tax (now law). The Budget replaced the 50% CGT discount for individuals, trusts and partnerships with cost base indexation and a 30% minimum tax on capital gains, from 1 July 2027, applying only to gains that accrue after that date. The legislation passed in June 2026, and the ATO confirms these measures "are now law". The detailed rules, including how gains before and after 1 July 2027 are treated, are set out in the Act and ATO guidance, so check them with your accountant.
Minimum tax on discretionary trusts (announced, not yet law). The Government has announced a 30% minimum tax on discretionary trusts from 1 July 2028, paid by the trustee. Beneficiaries other than companies would receive non-refundable credits for that tax. Fixed and widely held trusts, among others, are excluded. Restructure rollover relief is proposed for three years from 1 July 2027 for those moving assets out of discretionary trusts. As of October 2026 the ATO lists this measure as "not yet law".
Negative gearing (now law). From 1 July 2027, negative gearing for residential property is limited to new builds, with properties held at 7:30pm (AEST) on 12 May 2026 grandfathered. See property investment strategies in Australia for what that means for each approach.
Sources: Budget 2026-27, Tax reform; ATO, Reforming negative gearing and capital gains tax; ATO, Minimum tax on discretionary trusts. Check the current position with your accountant.
Land tax on trust-owned property
Land tax is set by each state, and trusts are often treated differently from individuals. In NSW, a "special trust" is any trust that is not a concessional or fixed trust for land tax purposes, and can include family, discretionary and unit trusts:
- A special trust does not receive the land tax threshold, so land tax can apply even when the land value is below it.
- Special trusts are taxed at a flat 1.6% up to the premium land tax threshold, then 2%. On a land value of $600,000, Revenue NSW's example gives $9,600 a year.
- A discretionary trust whose deed does not irrevocably exclude foreign beneficiaries is treated as foreign, and can pay surcharge land tax on residential land.
Fixed trusts and some other trusts do receive the threshold. Source: Revenue NSW, How trusts are assessed for land tax. Other states set their own rules, so check with the state revenue office where the property is.
Borrowing to buy in a trust
Lending to a trust is assessed differently from lending to an individual, and not every lender offers it. Liviti's finance team, an MFAA-accredited brokerage comparing more than 70 lenders, can compare lenders that lend to trusts.
Personal name or trust: what to weigh
- Who will receive the rental income and capital gains, now and in the future?
- Will the property make losses in the early years, and where would those losses sit?
- How do land tax, set-up costs and yearly accounting fees compare with any tax benefit?
- How do the 2027 CGT changes and the proposed 2028 trust minimum tax affect the numbers?
- How much separation of assets do you need, and what would a lawyer say it actually provides?
- Will a lender lend to the trust on terms that suit the plan?
These questions have different answers for different people, so speak to your accountant and a lawyer about your situation before choosing a structure.
Planning the structure before you buy
Structure, finance and the property itself work best when they are decided together, before contracts are signed. Liviti brings strategy, finance, buyer's agency and construction under one roof and works alongside your accountant and lawyer on the structure. See how Liviti's strategy service works, or take the strategy scorecard to see where you stand.
Frequently asked questions
Can I buy an investment property in a family trust?
Yes. A family trust is a discretionary trust, and its trustee can buy and hold investment property for the beneficiaries. The trustee, often a company, holds the title and runs the trust's tax affairs. Whether it suits you depends on your income, land tax, borrowing and the 2026 Budget changes, so speak to your accountant and a lawyer first.
Is buying property in a trust still worth it after the 2026 Budget?
It depends on your situation. The 50% CGT discount is replaced with indexation and a 30% minimum tax from 1 July 2027, which is now law, and a 30% minimum tax on discretionary trusts from 1 July 2028 has been announced. Both reduce some of the tax advantages trusts were used for. An accountant can model the numbers for you.
Do trusts pay land tax in NSW?
Often, yes. In NSW, discretionary trusts and unit trusts that are not fixed trusts are usually special trusts, which do not receive the land tax threshold and pay a flat 1.6% up to the premium threshold, then 2%. To avoid surcharge land tax, a discretionary trust's deed must irrevocably exclude foreign beneficiaries. Other states have their own rules.
What is the minimum tax on discretionary trusts?
It is a proposed 30% minimum tax on the taxable income of discretionary trusts from 1 July 2028, paid by the trustee. Beneficiaries other than companies would receive non-refundable credits for it. As of October 2026 the ATO lists it as announced but not yet law, with exposure draft legislation released for consultation in September 2026.
