4.14.2 Eligibility of the Principal Beneficiary of a Special Disability Trust

Introduction

This section contains information on how to determine whether a person is eligible for the means test concessions for special disability trusts.

Summary

This topic contains information on the following:

• overview,
• definition of a severely disabled person, and
• type of income support payment.

Overview

A person does not need to be in receipt of an income support payment for a special disability trust to be established for their care and accommodation needs. However, before a special disability trust can be established the person needs to establish that they meet the definition of severe disability.

Explanation: A person can have assets that exceed the limit for payment of income support or they may be unable to access payment for other qualification reasons. This does not stop them being a severely disabled person.

Example 1: Jane has received a lump sum compensation settlement and is not receiving any income support payments due to a preclusion period. However, she meets all eligibility criteria of a severely disabled person. Although Jane does not receive income support payments during the preclusion period, her parents establish a special disability trust for her to pay for her care needs.

Example 2: James is currently in gaol or psychiatric confinement (in connection with a criminal charge). James meets all the eligibility criteria of a severely disabled person. His grandparents establish a special disability trust for him to meet his future accommodation needs.

Definition of a severely disabled person

To be eligible to be a principal beneficiary of a special disability trust, the person must meet the definition of severe disability. The definition of severe disability is:

• a person who has reached 16 years of age:
  • whose level of impairment would qualify the person for DSP or who is already receiving a DVA invalidity service pension or DVA invalidity ISS, and
  • who has a disability that would, if the person had a sole carer, qualify the carer for CP or CA or the person is living in an institution, hostel or group home in which care is provided for people with disabilities, and for which funding is provided (wholly or partly) under an agreement between the Commonwealth and State/Territory governments, and
  • who has a disability as a result of which he or she is not working and who has no likelihood of working for a wage that is at or above the relevant minimum wage, OR

• a child under 16 years of age who is a profoundly disabled child as defined in SSAct section 197(1) who was a principal beneficiary immediately before 1 July 2009, or
• a person under 16 years of age:
  • who has a severe disability or a severe medical condition, and
  • whose carer has been given a qualifying rating of intense under the Disability Care Load Assessment (Child) Determination for caring for the child, and
  • for whom a treating health professional has certified in writing that, because of that disability or condition: the child will need personal care for 6 months or more, and the personal care is required to be provided by a specified number of persons; and
  • for whom the carer has certified in writing that the child will require the same care, or an increased level of care, to be provided to him or her in the future.

Act reference: SSAct section 1209M Beneficiary requirements, clause 139D of schedule 1A Saving - principal beneficiary of a special disability trust

Type of income support payment

A special disability trust and the assessment of the trust and any means test concessions are not related in any way to the type of income support payment the principal beneficiary receives now or in the future. Eligibility is based on the principal beneficiary being able to qualify for DSP or the corresponding DVA payment, and has no relationship to the type of payment being received.

Example: John's parents established a special disability trust for him when he was 55 years old. At that time he was in receipt of DSP. John is now 65 years old and is transferring to Age pension. The special disability trust continues to pay for his care and accommodation needs and the means test concessions continue to apply.

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Last reviewed: 1 July 2009