The Government tabled its response to the report on 14 May 2009. As an important step in addressing the barriers to the uptake of Special Disability Trusts, the Government has agreed to the following measures:
- starting from the 2008-09 financial year unexpended income of a Special Disability Trust will be taxed at the beneficiary's personal income tax rates, rather than the highest marginal tax rate;
- from 1 July 2009 the Government will extend the capital gains tax main residence exemption to include a residence that is owned by a Special Disability Trust and used by the relevant beneficiary as their main residence;
- the Special Disability Trust guidelines on care and accommodation needs will be revised, within current legislative provisions, to expand the list of examples of reasonable care and accommodation needs.
The Government is reviewing all recommendations from the Senate Committee including broadening the eligibility requirements to make it easier for people to establish Special Disability Trusts.
The measures address barriers identified in the Senate Standing Committee on Community Affairs’ report on Special Disability Trusts, Building trust: Supporting families through Disability Trusts.