Tuesday, August 2, 2011

Changes to Special Disability Trust legislation proposed


National

News Update

2 August 2011

Changes to Special Disability Trust legislation proposed

In response to ongoing community concern about the onerous restrictions on the establishment and operation of Special Disability Trusts (SDT), the Government has released draft legislation (and explanation) designed to make it easier for people to contribute to an SDT.
SDTs are designed to assist family members of people with severe disability to make private financial provision for the future care and accommodation needs of that person with severe disability.
Specifically, this draft legislation will:
  • provide a capital gains tax (CGT) exemption for assets transferred into an SDT for no consideration;
  • extend the CGT main residence exemption to SDTs;
  • provide a CGT exemption for the recipient of the principal beneficiary's main residence, if their ownership interest ends within two years of the principal beneficiary's death; and
  • ensure equivalent taxation treatment amongst SDTs established under different Acts.
The changes would apply from the 2006-07 income year, to align with when SDTs were first able to be established.
The consultation time is short, closing on 12 August. Members wishing to comment can do so by contacting NDS or by making a submission to The Treasury at cgt_sdt@treasury.gov.au.

Contact Information:
Philippa Angley, National Policy Manager, NDS National, Ph 03 8341 4302, philippa.angley@nds.org.au 

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