19 Apr 10 Government releases draft legislation reforming taxation treatment of special disability trusts
In joint media release No 2010/064, the Parliamentary Secretary for Disabilities and Children's Services and the Parliamentary Secretary for Victorian Bushfire Reconstruction, Bill Shorten, and the Assistant Treasurer, Senator Nick Sherry, announced the release for public consultation of draft legislation and explanatory material on the proposed changes to the taxation of the unexpended income of special disability trusts.
The changes were announced in the 2009-10 Budget and will provide for the unexpended income of a special disability trust to be taxed at the relevant principal beneficiary's personal income tax rates.
Draft legislation dealing with the extension of 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 will be released shortly.
"The Government welcomes further public comment on the draft Bill and explanatory materials by 28 April, 2010 – this will allow the introduction of the Bill in the winter Parliament sittings," said the Assistant Treasurer.