Income tax impediments removed from Special Disability Trusts

Income tax impediments removed from Special Disability Trusts

Income tax impediments removed from Special Disability Trusts

Bill Shorten has announced the Government will introduce legislation to remove income tax barriers to help families make financial contributions to Special Disability Trusts.

To make SDTs more beneficial for families, the Government will:

  • Provide a capital gains tax (CGT) exemption for assets transferred into an SDT for no consideration
  • Backdate the application of the 2009‐10 Budget measure that provides a CGT main residence exemption for SDTs to 2006‐07
  • Provide a CGT exemption for the recipient of the principal beneficiary’s main residence, if disposed of within two years of the principal beneficiary’s death
  • Ensure equivalent taxation treatment amongst SDTs established under different Acts.

These changes will apply from the 2006‐07 income year, to align with when SDTs were first able to be established.

Parliamentary Secretary for Disability and Carers, Senator Jan McLucas, said “By removing these
barriers, SDTs will become more attractive for families looking to provide for the long‐term care of a
family member with severe disability.”

Read the media release and background information here.

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