Family and community services

Reforms to special disability trusts

The Government has announced that changes will be made to special disability trusts which will increase flexibility for family members and carers who have the financial means to provide private financial provision for the future care and accommodation needs of a family member with severe disability.

It is proposed that from 1 January 2011 the following changes will apply:

- People with disability will be able to work up to seven hours a week and still qualify as a beneficiary of a trust.

- The trust will be able to pay for the beneficiary's medical expenses, including membership costs for private health funds, and the maintenance expenses of assets and properties.

- The trust will be able to spend up to $10,000 in a financial year on discretionary items not related to care and accommodation needs of the beneficiary to support social and community participation of the beneficiary.

- In two years, the Government will review the amount that can be held in the trust on a concessional basis, the amount that can be gifted, and who can request audits.

Changes to encourage non-working with disability to return to work

The Government has announced that from 1 July 2010 recipients of the disability support pension will be required to provide sufficient evidence that they are unable to work independently, even with assistance and support.

To satisfy this requirement, most applicants will have to provide evidence that they have been unable to obtain employment through an open employment service or vocational rehabilitation. This contrasts to the current situation where people can apply for the disability support pension without having to demonstrate that they have investigated alternative employment options.

Click here to go back to the article.