01 Aug 11 Special Disability Trusts: draft legislation released
In media release No 2011/117, issued 31 July 2011, the Assistant Treasurer and Minister for Financial Services and Superannuation, Bill Shorten, announced the release of exposure draft legislation and draft explanatory material intended to make it easier for people to contribute to a Special Disability Trust (SDT).
The amendments make SDTs more beneficial for families by:
- Providing a CGT exemption for assets transferred into an SDT for no consideration
- Extending the CGT main residence exemption to SDTs
- Providing 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 equivalent taxation treatment amongst SDTs established under different Acts.
These changes will apply from the 2006-07 income year, to align with when SDTs were first able to be established.
Consultation closes on Friday 12 August 2011.
Treasury has advised that it received 3 submissions in response to the consultation paper on the removal of income tax impediments affecting special disability trusts, released on 10 May 2011. All of these submissions were public and are accessible here