Last amended: 27 May 2011
Attribution of income
Section 52ZZZWI VEA
Income amounts from SDT
Section 52ZZZWJ VEA
Attribution of assets
Section 52ZZZWK VEA
Effect of certain transfers to SDT
Section 52ZZZWL VEA
The effect of exceeding the $500,000 limit
Section 52ZZZWM VEA
Transfers by the immediate family members prior to reaching pension age etc
Section 52ZZZWN VEA
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".
Reference Library – Pension Rates
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.