Booklet: Special Disability Trusts (SDT) (Chapter 6 – What are the advantages of an SDT?)

Booklet: Special Disability Trusts

Below is Chapter 6 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 2025/2026 financial year.

An understandably concerning question that families of people with disability often have is, “What will happen when I can no longer provide care?”

The key benefits of an SDT are:

  • Forward planning: Legal planning can ensure that the ongoing needs of a beneficiary continue to be met, even in circumstances where family members or a primary carer can no longer provide assistance.
  • Control of assets: A trustee has a legal obligation to safeguard and hold the assets for the benefit of the beneficiary.
  • Social security:
    • A gifting concession of up to $500,000 (combined) is available for eligible immediate family members of the principal beneficiary; and
    • An assets test assessment exemption of up to $832,750 (current as at the 2025/2026 financial year and indexed each year on 1 July) is available to the principal beneficiary.
  • Taxation benefits and exemptions:
    • Net income on trust assets is taxed at a lower personal income tax rate; and
    • Capital Gains Tax exemptions.

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

 

The information contained in this post is current at the date of editing – 04 August 2025.

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