Review of a Special Disability Trust (SDT) 043-04070070

The SDT is reviewed annually to ensure it continues to meet the legislative requirements of an SDT. Once a person with a disability is assessed as meeting the requirements of an SDT they are normally considered to meet the requirements on a permanent basis. Unless there is evidence, that they are now working in open employment of more than 7 hours per week on an ongoing basis.

When an SDT is first approved, the Complex Assessment Officer (CAO) will set a review for 1 January of the following year to allow time for the trustee or contact to provide the required documents by 31 March.
Note: if the trust had been set up prior to approval and has already been in existence past a financial year, the CAO will need to request the full financial statements, trust tax return (if lodged) and statutory declarations (with a review for their return).

When the annual review matures, a letter issues to the nominated contact of the SDT requesting financial statements, income tax return (if lodged), trustee(s) statutory declaration(s) and donor register/contribution updates (if applicable).

If the documentation is not supplied by 31 March and there is no entitlement to a waiver, the trust may lose its concessional status as an SDT. If this happens, the income and assets of the trust will be subject to the normal private trusts and company rules and any gifts to the trust may be subject to the deprivation provisions.

An audit of an SDT:

• is only to be requested by Services Australia if there is an indication that trust funds have been used inappropriately or outside the SDT regulations, or during the review of a decision. This would be paid for by the trust
• can be requested by the Principal Beneficiary, an Immediate Family Member, a legal guardian or financial administrator of the Principal Beneficiary (under Commonwealth, State or Territory law) or a person acting as guardian for the Principal Beneficiary on a long-term basis

If an audit is requested, a copy of the audit report must be provided to Services Australia as delegate of the Secretary.

The minimum period an audit can be requested for is a single financial year, with the maximum period being 5 financial years.