Documents required to assess a private trust 043-04020020

From 1 January 2002, the way private trusts are assessed under the Income and Assets Tests changed. The determination of a customer's assessable income and assets in respect of their involvement in a private trust is made by a Complex Assessment Officer (CAO), based on information provided in the Private Trust form (MOD PT) or Special Disability Trust form (MOD SDT) and accompanying documents.

Service Officers are responsible for providing the customer with the MOD PT or MOD SDT, if the new claim or a review triggers it to be issued. The Service Officer will also obtain from the customer all the relevant documentation as detailed in the checklist in Part D of the MOD PT or the checklist of the MOD SDT.

Note: if the customer is involved in more than one private trust they will need to complete a separate form for each private trust and provide the documents in the checklist for each private trust.

These documents are needed by the CAO to determine the assessable income and assets of the private trust and to whom the assessable income and assets are attributed. This may be used to determine the rate of an income support payment under the Social Security Act 1991, or ongoing entitlement to a Low Income Health Care Card (LIC) for impacted customers.

Services Australia requires the completed modules, and any other documents that may be required for the assessment, within 14 days of them being issued.

Following is a list of the types of documents and financial statements that may be needed to assess a private trust or SDT.

Note: all of the documents and financial statements listed may not be needed, only those that are applicable to the individual customer and the trust they are involved in:

• Private Trust form (MOD PT) or Special Disability Trust form (MOD SDT)
• Private Company form (MOD PC), only if the trustee is a corporate trustee
• Business Details form (MOD F), only for partnerships and primary production aggregation
• Trust Real Estate details section of the MOD PT for each property held by the trust including the home of the customer and their partner
• loan agreement for each liability of the Trust
• the latest individual tax return for the customer and their partner, if applicable
• the latest tax return for the private trust in which the customer or their partner is involved, including the complete financial statements
• trading account details, (part of the profit and loss account)
• profit and loss statement
• Resolution to Distribute and distribution statements
• depreciation statement
• balance sheet
• beneficiary or unit holder loan account details
• notes to and forming part of the accounts
• initial trust deed, or the original (or a certified copy of the original) statutory declaration or legal document of your resignation from the trust, which also states you will not exert any control over, or benefit in any way, from the trust
• council rates notice for each property held by the trust
• for a SDT - a copy of a will if the trust is the result of monies from a death bequest
• for a SDT - the trust deed(s), schedules showing contribution(s) or Donor Register and Statutory Declaration(s) by Trustee(s)
• evidence the trust has had a change in circumstance or any additional information the customer would like Services Australia to consider

The following documents may be requested at a later stage, if required:

• for a private trust - the trust deed, deed of settlement, or will
• last return to the Australian Securities and Investment Commission (ASIC)
• the schedule of unit holders if the trust is a unit trust
• certificate of title for each property held by the trust
• certificates for share investments held by the trust
• certificates for managed investments held by the trust

If several customers are involved in the same trust, some of the documents required may already have been provided to Services Australia. For example, the agency may already have been provided with the latest financial statements of the trust by another customer.

Note: since 1 January 2002 the assessment of a private trust must be done by a CAO.