The Federal Government has just released draft amendments to the Income Tax Assessment Act which are aimed at providing additional concessions for Special Disability Trusts (SDTs). The key measures contained in the draft legislation are as follows:
– Providing a capital gains tax (CGT) exemption for an asset transferred into a special disability trust for no consideration;
– Providing a CGT exemption for the trustee of a SDT where the principal beneficiary of the SDT uses the property as their main residence;
– A CGT exemption for the recipient of the principal beneficiary’s main residence if their ownership interest ends within two years of the principal beneficiary’s death;
– Ensuring all SDTs are provided with the same exemptions.
Special Disability Trusts were first introduced in 2006 to assist families and carers to make financial provision for the current and future accommodation needs of a family member with a severe disability.
Should you wish to know more about SDTs or the recently introduced changes please contact Murray Howlett of our Taxation Services Division on (07) 3023 1300.