Hubby and I have been arguing about the consequences of redeeming special income units in HDT. Our trust was set up based on the Macquarie Group Services deed (Chris Battens model). Hubby being the high income earner borrowed money and bought special income units in the trust, the trust bought a property etc. Now we want to sell the property. This means that hubby will need to redeem the special income units relating to the property in the trust. The trust deed has a clause which allows the special income units to be redeemed at "par" value - ie same value as when the units were bought in the trust. However, an accountant told us that we have to be careful because the ATO would raise eyebrows on this "par" redemption, and the redeemed value should be adjusted (increased) to at least CPI. Hubby is very worried and thinks that if this were the case then there was no benefit for us to have properties in the trust. Appreciated any views / comments on the above. Has there been any change to the "par" value redemption to the special income units in the HDT deed? Many thanks.