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Eligibility of the Principal Beneficiary

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Last amended: 10 June 2011

    

Principal beneficiary

A person does not need to be in receipt of an income support payment for a special disability trust (SDT) to be established for their care and accommodation needs. However, before an SDT is created it must be established that the person meets the definition of having a severe disability.

If the beneficiary of the trust is receiving a payment from Centrelink, this is done through an assessment by the Centrelink Special Disability Trust team.    

What is considered a severe disability?

    

VEA ?

Beneficiary requirements

Section 52ZZZWA(4) VEA

VEA ? (go back)

A person with a severe disability is defined as follows:

  • a person who has reached 16 years of age:
  • whose level of impairment would qualify the person for disability support pension or who is already receiving an invalidity service pension or an 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, States and Territories, and
  • who has a disability as a result of which he or she is not working and who has no likelihood of working for more than 7 hours per week for a wage that is at or above the relevant minimum wage, or he or she is working for wages set in accordance with the Supported Wage System, or
  • a child under 16 years of age who is a profoundly disabled child as defined in subsection 197(1) of the Social Security Act 1991.
Type of income support payment

The assessment of the SDT and any means test concessions are not related in any way to the type of income support payment the principal beneficiary receives now or in the future.


Means a payment of:

  • job search allowance, or

  • youth training allowance.

 

 

According to section 52ZZZW of the VEA, a special disability trust is a trust that has been established solely in order to provide for the current and future care and accommodation needs of the beneficiary who is a person with a severe disability.

 

 

To be eligible to be the principal beneficiary of a special disability trust, a person must have a severe disability. A person with a severe disability is:

  • a person who has reached 16 years of age:
  • whose level of impairment would qualify the person for disability support pension from Centrelink or who is already receiving invalidity service pension or invalidity 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 (wholly or partly) under an agreement between the Commonwealth and State/Territory governments, and
  • who has a disability as a result of which he or she is not working and who has no likelihood of working for a wage that is at or above the relevant minimum wage, or
  • a child under 16 years of age who is a profoundly disabled child as defined in subsection 197(1) in the Social Security Act 1991.

 

 

A Disability Support pension is paid by Centrelink to claimants with a significant and long term inability to work and is broadly equivalent to an Invalidity service pension paid by DVA.

A service pension is an income support payment broadly equivalent to the social security age and disability support pensions. It may be paid once a veteran or partner has reached the nominated age or is incapacitated for work.

ISS is an income support payment that may be paid to eligible war widows and widowers under the VEA and persons receiving wholly dependent partners' compensation under the MRCA, and who satisfy the means tests. It is an indexed rate, increased twice-yearly in March and September in line with changes to the cost of living and/or average wages. Income Support Supplement (ISS) legislation commenced on 20 March 1995. It is a payment created to replace the ceiling rate income support age, carer, wife and disability support pensions, paid to war widows/widowers by Centrelink.

 

 

Someone who has responsibility for a person who requires ongoing care, attention or support due to severe incapacity or frailty to enable that person to continue to reside in his or her home.

Means carer payment under the Social Security Act 1991.