External
Policy

Last amended: 9 October 2006

Non-complying use of capital/income

If the income or capital of the special disability trust (SDT) is used for purposes which make it a non-complying trust, then the trust will be assessed under the normal trust and company rules from the date the trust was deemed by a delegate to be non-complying. Any gifts will lose their concessional treatment from the date that the trust becomes non-complying.

Non-compliance events

Events which could result in the trust being non-complying include:

  • refusal to comply with investment restrictions,
  • refusal to conduct independent audits, and
  • purchase of business property used by a related party, other than the beneficiary.