SPECIAL
DISABILITY
TRUSTS

You love and care for your family members with special needs, a Special Disability Trust can be the peace of mind you’ve been looking for:

  • Access generous tax concessions

  • Maintain social security benefits

  • Secure the future care of your loved one

Overview

Special disability trusts (SDT) were introduced in 2006 are part of a government scheme to provide further benefits to assist in the care of individuals who have severe disabilities. These trusts are a valuable option to consider when planning for the long-term care and accommodation needs of a loved-one with a severe disability.

In the right situation, a SDT can be extremely beneficial, due to the welfare benefits and tax concessions. These can all be very complicated and that is where we can assist you.

Our areas of expertise

  • Help you understand the benefits

  • Facilitate the setup SPD Trusts

  • Minimise the tax you and your family pay

  • Ensure you maximise all available welfare benefits

  • Manage the ongoing trust compliance & administration

Ready to talk?

GRAHAM GARDNER

ACCOUNTANT

 [email protected]

Frances Butera

FRANCES BUTERA

ACCOUNTANT

 [email protected]
 0422 593 401

FAQ’s with SDT’s

  • The Settlor – Person or company who, with the trustee(s), establish the trust by contributing an initial amount.
  • The Appointer – Any person or corporation who is not the beneficiary or settlor. The appointor usually indirectly controls the trust and hires the trustee.
  • The Trustee – Manages the day to day activities of the trust.
  • The Beneficiary – Person who benefits under the trust.

  • the death of the beneficiary,
  • when the assets are fully expended on the beneficiary, or
  • any earlier date as required by law or the trust deed.

Under 16?

    • Person with a severe disability or a severe medical condition, and
    • a treating health professional has certified in writing that, because of that disability or condition:
      • the child will need personal care for 6 months or more, and
      • the child care is required to be provided by a specified number of persons,
    • the carer has certified in writing that the beneficiary will require the same care, or an increased level of care, to be provided to him or her in the future.

Over 16?

    • Level of impairment that would qualify the person for Disability Support Pension or who is already receiving a Department of Veterans’ Affairs Invalidity Service Pension or Income Support Supplement, and
    • who has a disability that would, if the person had a sole carer, qualify the carer for Carer Payment or Carer Allowance, or
    • who is living in an institution, hostel or group home in which care is provided for people with disabilities and for which funding is provided under an agreement between the Commonwealth, the states and the territories, and
    • who has a disability as a result of which he or she is not working and/or who has no likelihood of working for more than seven hours per week at or above the relevant minimum wage.

Yes, a beneficiary can work up to seven hours a week at or above the minimum wage and still qualify for a Special Disability Trust.

No, a beneficiary is not able to reside permanently outside of Australia. However, a beneficiary can travel overseas on a temporary basis.

  • Anyone, except the beneficiary or settlor, can be a trustee as long as they meet the legislative requirements. A trustee can either be an individual or a corporation, which includes accountants, solicitors, corporate trustees and state trustees.
  • An individual, or a director of a trustee corporation, must:
    • be an Australian resident,
    • not have been disqualified at any time from managing corporations under the Corporations Act 2001,
    • have not been convicted of an offence of dishonest conduct against a law of the Commonwealth, state, territory or foreign country, and
    • have not been convicted of an offence under the Social Security Act 1991 or the Social Security (Administration) Act 1999 or the Veterans’ Entitlement Act 1986

Helpful Resources