When Justice Has a Price Tag: The Struggles of Legal Funding in Australia
At AMC Finance (Australian Mortgage Corporation), we speak to people every week who are trying to move forward with legal
Peter runs a truck service company based near Caloundra, QLD. His company is quite successful and has been running for about 10 years. However, the lease on the current premises is due to expire next year and he doesn’t want to get stuck into another 5-year lease term. He is keen to buy a new business premises in the best structure possible. He can afford to purchase a site for $800,000.
We spoke to his accountant and worked out that by purchasing a new site in the name through his Family Trust, he can effectively pay off the loan and pay rent to himself for less monthly outgoings than his previous lease. His wife and children are trustees of the Trust and hence this adds a level of asset protection to Peter, meaning that he can control & receive income from assets without having them in his name.
For tax purposes, the taxable income was as low as possible, however we were able to add back lease payments, depreciation, Director’s Superann, and other expenses to make the loan service.
We organised a 30-year loan, lending up to 80% of the commercial property value, Interest only for 5 years, non-reviewable i.e. lender cannot recall the loan at any stage nor ask to view company’s financial performance).
After 5 years Peter may look at refinancing the loan again.
Peter runs a truck service company based near Caloundra, QLD. His company is quite successful and has been running for about 10 years. However, the lease on the current premises is due to expire next year and he doesn’t want to get stuck into another 5-year lease term. He is keen to buy a new business premises in the best structure possible. He can afford to purchase a site for $800,000.
We spoke to his accountant and worked out that by purchasing a new site in the name through his Family Trust, he can effectively pay off the loan and pay rent to himself for less monthly outgoings than his previous lease. His wife and children are trustees of the Trust and hence this adds a level of asset protection to Peter, meaning that he can control & receive income from assets without having them in his name.
For tax purposes, the taxable income was as low as possible, however we were able to add back lease payments, depreciation, Director’s Superann, and other expenses to make the loan service.
We organised a 30-year loan, lending up to 80% of the commercial property value, Interest only for 5 years, non-reviewable i.e. lender cannot recall the loan at any stage nor ask to view company’s financial performance).
After 5 years Peter may look at refinancing the loan again.
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At AMC Finance (Australian Mortgage Corporation), we speak to people every week who are trying to move forward with legal
The 2025–26 Federal Budget, delivered amid growing pressures on household finances and small businesses, offers meaningful relief in key areas—particularly
The Albanese Government’s long-awaited Help to Buy scheme is set to launch later in 2025, offering a powerful new pathway
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