Booklet: Special Disability Trusts (SDT) (Chapter 4 – What are the eligibility criteria of the intended beneficiary?)

Below is Chapter 4 of our ‘Special Disability Trusts’ booklet. To read the other chapters of our booklet, click the links below:

Please note that the information in this booklet is current as at the 2024/2025 financial year.

For a special disability trust to be established, the beneficiary must meet the definition of ‘severe disability’ which will be assessed by Services Australia (formerly Centrelink).

Under section 1209M of the Social Security Act 1991 (Cth), a person who has a ‘severe disability’ is:

  • A person who has reached 16 years of age:
    • whose level of impairment would qualify the person for Disability Support Pension or who is already receiving a Department of Veterans’ Affairs (DVA) Invalidity Service Pension or DVA Invalidity Income Support Supplement;
    • who has a disability that would, if the person had a sole carer, qualify the carer for Carer Payment or Carer Allowance; and
    • who has a disability and is unable to work more than seven hours a week in the open labour market; or
  • A person who has reached 16 years of age:
    • whose level of impairment would qualify the person for Disability Support Pension or who is already receiving a DVA Invalidity Service Pension or DVA Invalidity Income Support Supplement;
    • who is living in an institution, hostel or group home where care is provided for people with disabilities and funding is provided under an agreement between the Commonwealth, states and territories; and
    • who has a disability and is unable to work more than seven hours a week in the open labour market; or
  • A child under 16 years of age:
    • who is a person with a severe disability or a severe medical condition;
    • who has a carer who has been given a qualifying rating of ‘intense’ under the Disability Care Load Assessment (Child) Determination for caring for that person; and
    • who has had a treating health professional certify in writing that, because of that disability or condition:
      • the person will need personal care for six months or more; and
      • the personal care is required to be provided by a specified number of persons.

A person is eligible to receive Disability Support Pension if they:

  • Are over 16 years of age and under the aged pension age; and
  • Meet residence requirements; and
  • Are permanently blind or have been assessed as having a physical, intellectual, or psychiatric impairment of at least 20 points under the impairment tables; and
  • Are:
    • participating in the Supported Wage System; or
    • unable to work or to be retained to work 15 hours or more per week at or above the relevant minimum wage within the next 2 years because of their impairment; and
  • Have actively participated in a program of support (this is not required if they have a severe impairment); and
  • Meet the income and assets tests for their situation.

To assess a person’s eligibility for Disability Support Pension, Services Australia usually requires a report from the person’s doctor or specialist about their disability, injury or illness. Services Australia may also require the person to undergo a Job Capacity Assessment (which aims to determine whether the person can work, how much work they can do, and how much help they need in order to find and keep a job).

A carer is eligible to receive Carer Payment if they:

  • Personally provide constant care, in the home, to someone with a disability or medical condition, or who is frail aged;
  • Meet the income and assets tests;
  • Are living in Australia;
  • Meet residence requirements; and
  • If the care receiver (the person being cared for):
    • requires care in their home or in hospital;
    • meets an income and assets test unless they receive an eligible pension or benefit paid by the Department of Human Services or an eligible service pension or an income support supplement paid by the Department of Veterans Affairs;
    • meets the residence requirements; and
    • is an adult 16 years or over:
      • with a medically assessed physical, intellectual or psychiatric disability, or is frail aged; or
      • with a medically assessed physical, intellectual or psychiatric disability, or frail aged, with a dependent child in their care. If the dependent child is aged 6 years or older, the care receiver must qualify for and receive Carer Allowance for that child.

Services Australia encourages people to contact the Special Disability Trust Assessment team to ascertain whether the intended beneficiary meets the eligibility requirements before setting up an SDT.

To download a PDF of our booklet, enter your email below.

 

The information contained in this post is current at the date of editing – 11 September 2024.

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