Special Disability Trusts

A way for families to plan for the long term care and living needs of someone with a severe disability.

You need to know

Benefits

If you have a Special Disability Trust you may get a gifting concession and assets test assessment exemption.

Read more about benefits

Characteristics

A Special Disability Trust must have only one principal beneficiary (the person for whom the trust is established) who meets the eligibility criteria.

Read more about characteristics

The principal beneficiary

To be eligible to be a principal beneficiary of a Special Disability Trust, the person with a disability must meet the definition of severe disability.

Read more about the principal beneficiary

Eligibility for the gifting concession

Immediate family members of the Special Disability Trust principal beneficiary who are of age or of service pension age and get a pension are eligible for the gifting concession.

Read more about eligibility for the gifting concession

Fund contributions

Contributions or gifts of assets to any value can be made to a Special Disability Trust at any time by almost anyone.

Read more about fund contributions

Gifting concessions

A gifting concession of up to $500,000 combined is available for eligible family members of the principal beneficiary.

This concessional amount can only be used once. For example, if an eligible contributor gifts to a Special Disability Trust and receives a concession and then dies, his or her concession amount cannot be accessed by any other immediate family member.

Using Special Disability Trust funds

The funds of a Special Disability Trust are intended to meet the reasonable care and accommodation needs of the principal beneficiary.

Read more about using Special Disability Trust funds

Tax concessions

A Special Disability Trust’s unexpected income is taxed at the beneficiary’s personal income tax rate, rather than at the highest marginal tax rate.

Resources

More information

To find out more about Special Disability Trusts:

  • contact Department of Human Services' Special Disability Trust Team by:
    • phoning 1800 734 750 for the cost of a local call except from mobile and pay phones
  • visit the Department of Social Services website

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Page last updated: 22 September 2017