Assessment of Income and Assets for SDT

Last amended: 27 May 2011

Assets test exemption

The principal beneficiary of a special disability trust (SDT) is allowed an assets test exemption on the asset value of the SDT, up to the SDT asset value limit. This limit is indexed on 1 July each year. The current asset value limit for special disability trusts can be found in the current pension rates charts, under the heading "Special disability trust".    

Trust assets above that limit, not including the principal home, are added to the assessable assets of the principal beneficiary. The controllers of the SDT are not attributable stakeholders. The primary residence is an exempt asset and will not be included in the assessable assets of the trust. The principal beneficiary is the only attributed stakeholder under the trust and company rules.

Non-exempt assets

There is no limit on the value of assets that can be held in the SDT. Where the trust's assessable assets are above the concessional limit, the amount of assessable assets above the assets value limit are to be included in the principal beneficiary's assessable assets.

Income test exemption

All income from the trust is exempt from means testing. The income can only be used for the benefit of the principal beneficiary, including trust expenses and any personal income tax associated with assessable income from the trust. Expenditure is to be restricted to what can be considered reasonable in relation to the principal beneficiary's care and accommodation needs.