Special disability trusts before 1 July 2023

Circumstances/Transactions:

A declaration of trust that establishes a special disability trust (SDT) or a transfer of dutiable property for the same purpose for no consideration.

Where the dutiable value of the property that is a subject of the declaration exceeds $500,000, duty is chargeable only in respect of the dutiable value of the property that exceeds $500,000. If the dutiable property is not gifted by an immediate family member, this exemption does not apply. 

Special disability trusts from 1 July 2023

Evidence:

For a declaration of trust, the following evidence is required:

1. The original executed special disability trust deed.
2. A letter from Centrelink confirming the beneficiary and SDT's current eligibility status.
3. A statutory declaration by the trustee declaring the following:
   • Whether the creation of the SDT involved declaring a trust over any dutiable property and if so:
     • state whether the dutiable property held by the trust was gifted by an immediate family member, and if so, identify their relationship to the principal beneficiary, or
     • state whether any consideration passed between the trustee of the SDT and the other party, and
     • whether the value of any dutiable property held by the trust exceeds $500,000.
4. Evidence of the value of the property (other than cash) held by the special disability trust (if any) as at the date of the declaration, by one of the following:
   • a letter of appraisal from a licensed real estate agent and a copy of the rate notice, or
   • a valuation by a certified practising valuer who is a member of the Australian Property Institute (API) or by a member of the Real Estate Institute of Victoria (REIV) with sworn valuer accreditation.