RECOMMENDATIONS
Chapter 2
Recommendation 1
2.28 The
committee recommends that the special disability trust eligibility requirements
in section 1209M of the Social Security Act 1991 be amended to:
- include eligibility requirements which
effectively enable those with intellectual disabilities or mental illnesses to
become beneficiaries of special disability trusts.
Recommendation 2
2.47 The
committee recommends that the asset value limit for special disability trusts
in section 1209Y of the Social Security Act 1991 be increased to
$1,000,000 and annually indexed according to a rate which reflects ordinary
investment returns or the Consumer Price Index whichever is greater.
Recommendation 3
2.49 The
committee recommends that the provisions relating to the special disability
trust gifting concession be amended to annually index the gifting concession
limit to the rate applied to the special disability trust asset value limit.
Recommendation 4
2.50 The
committee recommends that, if after the adoption of the recommendations in this
report there is no improvement in the uptake of special disability trusts after
two years, options to expand eligibility for the gifting concession should be
reviewed.
Recommendation 5
2.71 The
committee recommends that the tax arrangements applying to SDTs be changed so
that:
- the sale of a property that is owned by a
special disability trust and used by the beneficiary as their principal place
of residence be treated the same as any other person's principle place of
residence, that is, exempt of capital gains tax;
- the transfer of property and other assets to a
special disability trust is exempt from capital gains tax and stamp duty;
- unexpended special disability trust income is
taxed at the beneficiary's personal income tax rate.
Recommendation 6
2.111 The
committee recommends that the allowable uses of special disability trusts be
expanded to include all day-to-day living expenses that are met to maximise the
beneficiary's health, wellbeing, recreation and independence.
Recommendation 7
2.112 The
committee recommends that unexpended income from a special disability trust be
able to be contributed, on a pre-tax basis, to a superannuation fund for the
trust beneficiary.
Recommendation 8
2.113 The
committee recommends that when a special disability trust is used to purchase a
first home for the trust beneficiary, the First Home Owner Grant should apply
and be payable to the trust.
Chapter 3
Recommendation 9
3.28 The
committee recommends that the government review appropriate options to provide
additional assistance to families establishing and maintaining a special
disability trust including low cost legal and financial advice, as well as
funding for the development of long-term planning.
Recommendation 10
3.29 The
committee recommends that requests for audits of a special disability trust be
restricted to one external audit per financial year, unless the Secretary of
the Department of Families, Housing, Community Services and Indigenous Affairs
determines this restriction should be waived.
Recommendation 11
3.30 That
the single trust rule in section 1209M(6) of the Social Security Act 1991
be amended to allow two trusts for each beneficiary.
Recommendation 12
3.51 The
committee recommends that Centrelink be designated as the agency responsible
and accountable for ensuring that special disability trusts are promoted and
understood among families caring for members with disability.
Recommendation 13
3.52 The
committee recommends that the Department of Families, Housing, Community
Services and Indigenous Affairs in partnership with industry bodies and peak
carer organisations develop a training package for financial and legal advisers
focussed on future planning for carers of people with disability, including
special disability trusts.
Recommendation 14
3.53 The
committee recommends that the government consider changing the name of special
disability trusts, for example to disability support trusts.
Navigation: Previous Page | Contents | Next Page