{"id":"F2023L01234","name":"Veterans’ Entitlements (Special Disability Trust — Trust Deed, Reporting and Audit Requirements) Determination 2023","slug":"f2023l01234","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":319293,"registerId":"commonwealth-F2023L01234-current","compilationNumber":null,"startDate":"2026-04-08","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Preliminary","content":"## Part 1 Preliminary\n\n#### 1 Name\n\n This instrument is the Veterans’ Entitlements (Special Disability Trust ─ Trust Deed, Reporting and Audit Requirements) Determination 2023.\n\n#### 2 Commencement\n\n This instrument commences on the day after registration.\n\n#### 3 Authority\n\n This instrument is made under the following provisions of the Veterans’ Entitlements Act 1986:\n (a) subsection 52ZZZWC(2);\n (b) subsection 52ZZZWF(4);\n (c) subsection 52ZZZWG(7).\n\n#### 4 Interpretation\n\n> Note: Terms used in this instrument have the same meaning as they do in the Veterans’ Entitlements Act 1986. For example, the following terms are defined in that Act:\n\n> Note: immediate family member;\n\n> Note: principal beneficiary;\n\n> Note: Social Security Act;\n\n> Note: special disability trust.\n\n In this instrument:\n\n> Act means the Veterans’ Entitlements Act 1986.\n\n> Auditing and Assurance Standards Board means the Australian non-corporate government entity responsible for developing, issuing and maintaining standards relating to auditing and assurance.\n\n> Australian Auditing Standards means the standards issued by the Auditing and Assurance Standards Board as existing on the day this instrument commences.\n\n> Note: The Australian Auditing Standards could in 2023 be viewed online on the Auditing and Assurance Standards Board website (auasb.gov.au).\n\n> Department means the Department of Veterans’ Affairs.\n\n> model trust deed means the document named Model Trust Deed for Special Disability Trusts:\n\n (a) published by the department responsible for administering the Social Security Act; and\n (b) as existing on the day this instrument commences.\n\n> Note: The Model Trust Deed for Special Disability Trust could in 2023 be viewed online on the Department of Social Services website (dss.gov.au).\n\n> relevant financial year, for a reporting requirement for a trust, means the financial year in relation to which the trustees are required to give financial statements about the trust under subsection 52ZZZWF(1) of the Act.\n\n#### 5 Schedules\n\n Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.\n\n## Part 2 Trust deed requirements\n\n#### 6 Form of trust deed\n\n For paragraph 52ZZZWC(2)(a) of the Act, the form of the trust deed required for a special disability trust is the model trust deed, in writing.\n\n#### 7 Provisions which must be included in trust deed and form of provisions\n\n (1) For paragraph 52ZZZWC(2)(b) of the Act, the trust deed must include provisions dealing with each of the matters mentioned in column 2 of the table in subsection (2).\n (2) For paragraph 52ZZZWC(2)(c) of the Act, the provision in the trust deed dealing with a matter mentioned in column 2 for an item of the following table must be in the form of the clause of the model trust deed mentioned in column 3 for that item.\n\n```html\n

Provisions to be included and form of provisions

Column 1

Column 2

Column 3

Item

Matter

Clause of model trust deed

1

Date on which trust is made

P.1

2

Parties to the trust

P.2

3

Description of the Principal Beneficiary

1.1

4

Declaration of trust

1.2

5

Name of trust

1.3

6

Application of operative provisions

1.4

7

Duration of trust

1.5

8

Exclusion of settlors

1.7

9

Primary and other purposes of trust

2.1

10

Priority of Principal Beneficiary

2.2

11

Power to accumulate income

2.4

12

Contributions

3.1

13

Non-acceptable contributions

3.2

14

Restrictions on use of trust funds

3.3

15

Prohibition on borrowing

3.4

16

Further prohibitions with regard to related parties

3.5

17

Prohibition on lending to Principal Beneficiary

3.6

18

Donor register

3.7

19

Qualifications of the trustee

5.1

20

Extent of trustee responsibility

5.5

21

Powers of trustee

6.1

22

Standard of care

6.2

23

Investment strategy

6.3

24

Requirement to keep accounts

8.1

25

Financial statements and reporting

8.2

26

Audit requirements

8.3

27

Amending the trust

9.2

28

Definitions

9.3

29

Interpretation

9.4

30

Applicable law

9.5

31

Execution

E.1

\n```\n\n#### 8 Provisions that cannot be included in trust deed\n\n For paragraph 52ZZZWC(2)(d) of the Act, the following provisions cannot be included in the trust deed:\n (a) a provision that is inconsistent with a clause of the model trust deed mentioned in the table in subsection 7(2);\n (b) a provision that has the effect of overriding a clause of the model trust deed mentioned in that table.\n\n## Part 3 Reporting requirements\n\n#### 9 Qualifications of persons preparing financial statements\n\n For paragraph 52ZZZWF(2)(a) of the Act, the financial statements about a trust must be prepared by a person who:\n (a) is either or both of the following:\n (i) a member of CPA Australia, Chartered Accountants Australia and New Zealand, or Institute of Public Accountants;\n (ii) if a trustee corporation is a trustee of the trust – an employee of the trustee corporation engaged by the corporation as an accountant or financial planner; and\n (b) is not an immediate family member of any of the following:\n (i) the principal beneficiary of the trust;\n (ii) a residuary beneficiary of the trust;\n (iii) a trustee of the trust.\n\n#### 10 Information that must be included in financial statements\n\n (1) For subsection 52ZZZWF(3) of the Act, the financial statements for a trust must include information of the kind specified in subsections (2) to (5).\n (2) The financial statements must include:\n (a) a profit and loss statement for the trust for the relevant financial year; and\n (b) a balance sheet for the trust with applicable notes for the relevant financial year; and\n (c) notes that disclose:\n\n(i) the basis on which the financial statements were prepared, including whether they comply with the requirements of the Act and the trust deed; and\n\n(ii) the material accounting policies applied in the financial statements and the nature and extent of any changes in those accounting policies, including the reasons why applying the new accounting policy provides more relevant and reliable information; and\n\n (d) if the trust has depreciating assets - a depreciation schedule for each class of trust assets held by the trust for the relevant financial year.\n (3) The financial statements must give a true and correct view in all material particulars of the trust’s financial position and performance as at 30 June of the relevant financial year.\n (4) The financial statements must include a statement to the effect that, for the relevant financial year:\n (a) all amounts paid out of the trust (other than amounts paid for reasonable administration expenses and taxation) were paid:\n (i) to meet reasonable care and accommodation needs of the principal beneficiary; or\n (ii) for other purposes, ancillary to meeting the reasonable care and accommodation needs of the principal beneficiary, that are necessary or desirable to facilitate the meeting of those needs; or\n (iii) for other purposes that are primarily for the benefit of the principal beneficiary; and\n (b) no amount was paid out of the trust:\n (i) for purposes other than those mentioned in subparagraphs (a)(i), (ii) or (iii); or\n (ii) for services provided to the principal beneficiary by an immediate family member of the principal beneficiary.\n (5) The financial statements about the trust must be accompanied by a statutory declaration made by all trustees of the trust to the effect that all information given in the accordance with section 52ZZZWF of this Act and this Part is true and correct in all material particulars.\n\n#### 11 Income tax returns\n\n (1) For subsection 52ZZZWF(3) of the Act, subject to subsection (2), the financial statement about a trust must include a certified copy of the trust’s income tax return, completed and lodged in accordance with the Income Tax Assessment Act 1936 for the relevant financial year.\n (2) If section 95AB of the Income Tax Assessment Act 1936 applies to the trust’s income, a certified copy of the trust’s income tax return is not required.\n\n## ![](image.002.png) \nPart 4 Auditing requirements\n\n#### 12 Audit period\n\n For section 52ZZZWG of the Act, the audit of the trust must relate to the period specified by the person requesting the audit under subsection 52ZZZWG (3) of the Act, being a period of 1 to 5 financial years in the period of 5 financial years ending on the 30 June last preceding the request.\n\n#### 13 Qualifications of persons preparing audit\n\n For paragraph 52ZZZWG(5)(a) of the Act, the audit of the trust must be prepared by a person who:\n (a) is a member of:\n (i) CPA Australia; or\n (ii) Chartered Accountants Australia and New Zealand; or\n (iii) the Institute of Public Accountants; and\n (b) is not the person who prepared, or is preparing, any of the financial statements about the trust for the period to which the audit relates; and\n (c) is not an immediate family member of any of the following:\n (i) the principal beneficiary of the trust;\n (ii) a residuary beneficiary of the trust;\n (iii) a trustee of the trust.\n\n#### 14 Information that must be included in audit\n\n (1) For subsection 52ZZZWG(6) of the Act, the audit of the trust must include information of the following kind:\n (a) a statement to the effect that the trust’s financial statements give a true and fair view of the trust’s financial position and performance as at 30 June of each financial year to which the audit relates;\n (b) if the person requesting the audit under subsection 52ZZZWG(3) of the Act requests the audit for the purpose of determining whether the trust has met the requirements of all of the provisions of the trust deed — a statement indicating whether the trust has met the requirements of all of the provisions of the trust deed;\n (c) if the person requesting the audit under subsection 52ZZZWG(3) of the Act requests the audit for the purpose of determining whether the trust has met the requirements of specified provisions of the trust deed — a statement indicating whether the trust has met the requirements of those specified provisions of the trust deed.\n (2) Information mentioned in subsection (1) must comply with the relevant Australian Auditing Standards.\n\nSchedule 1—Repeals\n\nVeterans’ Entitlements (Special Disability Trust ─ Trust Deed, Reporting and Audit Requirements) Determination 2013\n\n1 The whole of the instrument\n\nRepeal the instrument.","sortOrder":0},{"sectionNumber":"1","sectionType":"section","heading":"Name","content":"#### 1 Name\n\n This instrument is the Veterans’ Entitlements (Special Disability Trust ─ Trust Deed, Reporting and Audit Requirements) Determination 2023.","sortOrder":1},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n This instrument commences on the day after registration.","sortOrder":2},{"sectionNumber":"3","sectionType":"section","heading":"Authority","content":"#### 3 Authority\n\n This instrument is made under the following provisions of the Veterans’ Entitlements Act 1986:\n (a) subsection 52ZZZWC(2);\n (b) subsection 52ZZZWF(4);\n (c) subsection 52ZZZWG(7).","sortOrder":3},{"sectionNumber":"4","sectionType":"section","heading":"Interpretation","content":"#### 4 Interpretation\n\n> Note: Terms used in this instrument have the same meaning as they do in the Veterans’ Entitlements Act 1986. For example, the following terms are defined in that Act:\n\n> Note: immediate family member;\n\n> Note: principal beneficiary;\n\n> Note: Social Security Act;\n\n> Note: special disability trust.\n\n In this instrument:\n\n> Act means the Veterans’ Entitlements Act 1986.\n\n> Auditing and Assurance Standards Board means the Australian non-corporate government entity responsible for developing, issuing and maintaining standards relating to auditing and assurance.\n\n> Australian Auditing Standards means the standards issued by the Auditing and Assurance Standards Board as existing on the day this instrument commences.\n\n> Note: The Australian Auditing Standards could in 2023 be viewed online on the Auditing and Assurance Standards Board website (auasb.gov.au).\n\n> Department means the Department of Veterans’ Affairs.\n\n> model trust deed means the document named Model Trust Deed for Special Disability Trusts:\n\n (a) published by the department responsible for administering the Social Security Act; and\n (b) as existing on the day this instrument commences.\n\n> Note: The Model Trust Deed for Special Disability Trust could in 2023 be viewed online on the Department of Social Services website (dss.gov.au).\n\n> relevant financial year, for a reporting requirement for a trust, means the financial year in relation to which the trustees are required to give financial statements about the trust under subsection 52ZZZWF(1) of the Act.","sortOrder":4},{"sectionNumber":"5","sectionType":"section","heading":"Schedules","content":"#### 5 Schedules\n\n Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.","sortOrder":5},{"sectionNumber":"Part 2","sectionType":"part","heading":"Trust deed requirements","content":"## Part 1 Preliminary\n\n#### 1 Name\n\n This instrument is the Veterans’ Entitlements (Special Disability Trust ─ Trust Deed, Reporting and Audit Requirements) Determination 2023.\n\n#### 2 Commencement\n\n This instrument commences on the day after registration.\n\n#### 3 Authority\n\n This instrument is made under the following provisions of the Veterans’ Entitlements Act 1986:\n (a) subsection 52ZZZWC(2);\n (b) subsection 52ZZZWF(4);\n (c) subsection 52ZZZWG(7).\n\n#### 4 Interpretation\n\n> Note: Terms used in this instrument have the same meaning as they do in the Veterans’ Entitlements Act 1986. For example, the following terms are defined in that Act:\n\n> Note: immediate family member;\n\n> Note: principal beneficiary;\n\n> Note: Social Security Act;\n\n> Note: special disability trust.\n\n In this instrument:\n\n> Act means the Veterans’ Entitlements Act 1986.\n\n> Auditing and Assurance Standards Board means the Australian non-corporate government entity responsible for developing, issuing and maintaining standards relating to auditing and assurance.\n\n> Australian Auditing Standards means the standards issued by the Auditing and Assurance Standards Board as existing on the day this instrument commences.\n\n> Note: The Australian Auditing Standards could in 2023 be viewed online on the Auditing and Assurance Standards Board website (auasb.gov.au).\n\n> Department means the Department of Veterans’ Affairs.\n\n> model trust deed means the document named Model Trust Deed for Special Disability Trusts:\n\n (a) published by the department responsible for administering the Social Security Act; and\n (b) as existing on the day this instrument commences.\n\n> Note: The Model Trust Deed for Special Disability Trust could in 2023 be viewed online on the Department of Social Services website (dss.gov.au).\n\n> relevant financial year, for a reporting requirement for a trust, means the financial year in relation to which the trustees are required to give financial statements about the trust under subsection 52ZZZWF(1) of the Act.\n\n#### 5 Schedules\n\n Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.\n\n## Part 2 Trust deed requirements\n\n#### 6 Form of trust deed\n\n For paragraph 52ZZZWC(2)(a) of the Act, the form of the trust deed required for a special disability trust is the model trust deed, in writing.\n\n#### 7 Provisions which must be included in trust deed and form of provisions\n\n (1) For paragraph 52ZZZWC(2)(b) of the Act, the trust deed must include provisions dealing with each of the matters mentioned in column 2 of the table in subsection (2).\n (2) For paragraph 52ZZZWC(2)(c) of the Act, the provision in the trust deed dealing with a matter mentioned in column 2 for an item of the following table must be in the form of the clause of the model trust deed mentioned in column 3 for that item.\n\n```html\n

Provisions to be included and form of provisions

Column 1

Column 2

Column 3

Item

Matter

Clause of model trust deed

1

Date on which trust is made

P.1

2

Parties to the trust

P.2

3

Description of the Principal Beneficiary

1.1

4

Declaration of trust

1.2

5

Name of trust

1.3

6

Application of operative provisions

1.4

7

Duration of trust

1.5

8

Exclusion of settlors

1.7

9

Primary and other purposes of trust

2.1

10

Priority of Principal Beneficiary

2.2

11

Power to accumulate income

2.4

12

Contributions

3.1

13

Non-acceptable contributions

3.2

14

Restrictions on use of trust funds

3.3

15

Prohibition on borrowing

3.4

16

Further prohibitions with regard to related parties

3.5

17

Prohibition on lending to Principal Beneficiary

3.6

18

Donor register

3.7

19

Qualifications of the trustee

5.1

20

Extent of trustee responsibility

5.5

21

Powers of trustee

6.1

22

Standard of care

6.2

23

Investment strategy

6.3

24

Requirement to keep accounts

8.1

25

Financial statements and reporting

8.2

26

Audit requirements

8.3

27

Amending the trust

9.2

28

Definitions

9.3

29

Interpretation

9.4

30

Applicable law

9.5

31

Execution

E.1

\n```\n\n#### 8 Provisions that cannot be included in trust deed\n\n For paragraph 52ZZZWC(2)(d) of the Act, the following provisions cannot be included in the trust deed:\n (a) a provision that is inconsistent with a clause of the model trust deed mentioned in the table in subsection 7(2);\n (b) a provision that has the effect of overriding a clause of the model trust deed mentioned in that table.\n\n## Part 3 Reporting requirements\n\n#### 9 Qualifications of persons preparing financial statements\n\n For paragraph 52ZZZWF(2)(a) of the Act, the financial statements about a trust must be prepared by a person who:\n (a) is either or both of the following:\n (i) a member of CPA Australia, Chartered Accountants Australia and New Zealand, or Institute of Public Accountants;\n (ii) if a trustee corporation is a trustee of the trust – an employee of the trustee corporation engaged by the corporation as an accountant or financial planner; and\n (b) is not an immediate family member of any of the following:\n (i) the principal beneficiary of the trust;\n (ii) a residuary beneficiary of the trust;\n (iii) a trustee of the trust.\n\n#### 10 Information that must be included in financial statements\n\n (1) For subsection 52ZZZWF(3) of the Act, the financial statements for a trust must include information of the kind specified in subsections (2) to (5).\n (2) The financial statements must include:\n (a) a profit and loss statement for the trust for the relevant financial year; and\n (b) a balance sheet for the trust with applicable notes for the relevant financial year; and\n (c) notes that disclose:\n\n(i) the basis on which the financial statements were prepared, including whether they comply with the requirements of the Act and the trust deed; and\n\n(ii) the material accounting policies applied in the financial statements and the nature and extent of any changes in those accounting policies, including the reasons why applying the new accounting policy provides more relevant and reliable information; and\n\n (d) if the trust has depreciating assets - a depreciation schedule for each class of trust assets held by the trust for the relevant financial year.\n (3) The financial statements must give a true and correct view in all material particulars of the trust’s financial position and performance as at 30 June of the relevant financial year.\n (4) The financial statements must include a statement to the effect that, for the relevant financial year:\n (a) all amounts paid out of the trust (other than amounts paid for reasonable administration expenses and taxation) were paid:\n (i) to meet reasonable care and accommodation needs of the principal beneficiary; or\n (ii) for other purposes, ancillary to meeting the reasonable care and accommodation needs of the principal beneficiary, that are necessary or desirable to facilitate the meeting of those needs; or\n (iii) for other purposes that are primarily for the benefit of the principal beneficiary; and\n (b) no amount was paid out of the trust:\n (i) for purposes other than those mentioned in subparagraphs (a)(i), (ii) or (iii); or\n (ii) for services provided to the principal beneficiary by an immediate family member of the principal beneficiary.\n (5) The financial statements about the trust must be accompanied by a statutory declaration made by all trustees of the trust to the effect that all information given in the accordance with section 52ZZZWF of this Act and this Part is true and correct in all material particulars.\n\n#### 11 Income tax returns\n\n (1) For subsection 52ZZZWF(3) of the Act, subject to subsection (2), the financial statement about a trust must include a certified copy of the trust’s income tax return, completed and lodged in accordance with the Income Tax Assessment Act 1936 for the relevant financial year.\n (2) If section 95AB of the Income Tax Assessment Act 1936 applies to the trust’s income, a certified copy of the trust’s income tax return is not required.\n\n## ![](image.002.png) \nPart 4 Auditing requirements\n\n#### 12 Audit period\n\n For section 52ZZZWG of the Act, the audit of the trust must relate to the period specified by the person requesting the audit under subsection 52ZZZWG (3) of the Act, being a period of 1 to 5 financial years in the period of 5 financial years ending on the 30 June last preceding the request.\n\n#### 13 Qualifications of persons preparing audit\n\n For paragraph 52ZZZWG(5)(a) of the Act, the audit of the trust must be prepared by a person who:\n (a) is a member of:\n (i) CPA Australia; or\n (ii) Chartered Accountants Australia and New Zealand; or\n (iii) the Institute of Public Accountants; and\n (b) is not the person who prepared, or is preparing, any of the financial statements about the trust for the period to which the audit relates; and\n (c) is not an immediate family member of any of the following:\n (i) the principal beneficiary of the trust;\n (ii) a residuary beneficiary of the trust;\n (iii) a trustee of the trust.\n\n#### 14 Information that must be included in audit\n\n (1) For subsection 52ZZZWG(6) of the Act, the audit of the trust must include information of the following kind:\n (a) a statement to the effect that the trust’s financial statements give a true and fair view of the trust’s financial position and performance as at 30 June of each financial year to which the audit relates;\n (b) if the person requesting the audit under subsection 52ZZZWG(3) of the Act requests the audit for the purpose of determining whether the trust has met the requirements of all of the provisions of the trust deed — a statement indicating whether the trust has met the requirements of all of the provisions of the trust deed;\n (c) if the person requesting the audit under subsection 52ZZZWG(3) of the Act requests the audit for the purpose of determining whether the trust has met the requirements of specified provisions of the trust deed — a statement indicating whether the trust has met the requirements of those specified provisions of the trust deed.\n (2) Information mentioned in subsection (1) must comply with the relevant Australian Auditing Standards.\n\nSchedule 1—Repeals\n\nVeterans’ Entitlements (Special Disability Trust ─ Trust Deed, Reporting and Audit Requirements) Determination 2013\n\n1 The whole of the instrument\n\nRepeal the instrument.","sortOrder":6},{"sectionNumber":"6","sectionType":"section","heading":"Form of trust deed","content":"#### 6 Form of trust deed\n\n For paragraph 52ZZZWC(2)(a) of the Act, the form of the trust deed required for a special disability trust is the model trust deed, in writing.","sortOrder":7},{"sectionNumber":"7","sectionType":"section","heading":"Provisions which must be included in trust deed and form of provisions","content":"#### 7 Provisions which must be included in trust deed and form of provisions\n\n (1) For paragraph 52ZZZWC(2)(b) of the Act, the trust deed must include provisions dealing with each of the matters mentioned in column 2 of the table in subsection (2).\n (2) For paragraph 52ZZZWC(2)(c) of the Act, the provision in the trust deed dealing with a matter mentioned in column 2 for an item of the following table must be in the form of the clause of the model trust deed mentioned in column 3 for that item.\n\n```html\n

Provisions to be included and form of provisions

Column 1

Column 2

Column 3

Item

Matter

Clause of model trust deed

1

Date on which trust is made

P.1

2

Parties to the trust

P.2

3

Description of the Principal Beneficiary

1.1

4

Declaration of trust

1.2

5

Name of trust

1.3

6

Application of operative provisions

1.4

7

Duration of trust

1.5

8

Exclusion of settlors

1.7

9

Primary and other purposes of trust

2.1

10

Priority of Principal Beneficiary

2.2

11

Power to accumulate income

2.4

12

Contributions

3.1

13

Non-acceptable contributions

3.2

14

Restrictions on use of trust funds

3.3

15

Prohibition on borrowing

3.4

16

Further prohibitions with regard to related parties

3.5

17

Prohibition on lending to Principal Beneficiary

3.6

18

Donor register

3.7

19

Qualifications of the trustee

5.1

20

Extent of trustee responsibility

5.5

21

Powers of trustee

6.1

22

Standard of care

6.2

23

Investment strategy

6.3

24

Requirement to keep accounts

8.1

25

Financial statements and reporting

8.2

26

Audit requirements

8.3

27

Amending the trust

9.2

28

Definitions

9.3

29

Interpretation

9.4

30

Applicable law

9.5

31

Execution

E.1

\n```","sortOrder":8},{"sectionNumber":"8","sectionType":"section","heading":"Provisions that cannot be included in trust deed","content":"#### 8 Provisions that cannot be included in trust deed\n\n For paragraph 52ZZZWC(2)(d) of the Act, the following provisions cannot be included in the trust deed:\n (a) a provision that is inconsistent with a clause of the model trust deed mentioned in the table in subsection 7(2);\n (b) a provision that has the effect of overriding a clause of the model trust deed mentioned in that table.","sortOrder":9},{"sectionNumber":"Part 3","sectionType":"part","heading":"Reporting requirements","content":"## Part 1 Preliminary\n\n#### 1 Name\n\n This instrument is the Veterans’ Entitlements (Special Disability Trust ─ Trust Deed, Reporting and Audit Requirements) Determination 2023.\n\n#### 2 Commencement\n\n This instrument commences on the day after registration.\n\n#### 3 Authority\n\n This instrument is made under the following provisions of the Veterans’ Entitlements Act 1986:\n (a) subsection 52ZZZWC(2);\n (b) subsection 52ZZZWF(4);\n (c) subsection 52ZZZWG(7).\n\n#### 4 Interpretation\n\n> Note: Terms used in this instrument have the same meaning as they do in the Veterans’ Entitlements Act 1986. For example, the following terms are defined in that Act:\n\n> Note: immediate family member;\n\n> Note: principal beneficiary;\n\n> Note: Social Security Act;\n\n> Note: special disability trust.\n\n In this instrument:\n\n> Act means the Veterans’ Entitlements Act 1986.\n\n> Auditing and Assurance Standards Board means the Australian non-corporate government entity responsible for developing, issuing and maintaining standards relating to auditing and assurance.\n\n> Australian Auditing Standards means the standards issued by the Auditing and Assurance Standards Board as existing on the day this instrument commences.\n\n> Note: The Australian Auditing Standards could in 2023 be viewed online on the Auditing and Assurance Standards Board website (auasb.gov.au).\n\n> Department means the Department of Veterans’ Affairs.\n\n> model trust deed means the document named Model Trust Deed for Special Disability Trusts:\n\n (a) published by the department responsible for administering the Social Security Act; and\n (b) as existing on the day this instrument commences.\n\n> Note: The Model Trust Deed for Special Disability Trust could in 2023 be viewed online on the Department of Social Services website (dss.gov.au).\n\n> relevant financial year, for a reporting requirement for a trust, means the financial year in relation to which the trustees are required to give financial statements about the trust under subsection 52ZZZWF(1) of the Act.\n\n#### 5 Schedules\n\n Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.\n\n## Part 2 Trust deed requirements\n\n#### 6 Form of trust deed\n\n For paragraph 52ZZZWC(2)(a) of the Act, the form of the trust deed required for a special disability trust is the model trust deed, in writing.\n\n#### 7 Provisions which must be included in trust deed and form of provisions\n\n (1) For paragraph 52ZZZWC(2)(b) of the Act, the trust deed must include provisions dealing with each of the matters mentioned in column 2 of the table in subsection (2).\n (2) For paragraph 52ZZZWC(2)(c) of the Act, the provision in the trust deed dealing with a matter mentioned in column 2 for an item of the following table must be in the form of the clause of the model trust deed mentioned in column 3 for that item.\n\n```html\n

Provisions to be included and form of provisions

Column 1

Column 2

Column 3

Item

Matter

Clause of model trust deed

1

Date on which trust is made

P.1

2

Parties to the trust

P.2

3

Description of the Principal Beneficiary

1.1

4

Declaration of trust

1.2

5

Name of trust

1.3

6

Application of operative provisions

1.4

7

Duration of trust

1.5

8

Exclusion of settlors

1.7

9

Primary and other purposes of trust

2.1

10

Priority of Principal Beneficiary

2.2

11

Power to accumulate income

2.4

12

Contributions

3.1

13

Non-acceptable contributions

3.2

14

Restrictions on use of trust funds

3.3

15

Prohibition on borrowing

3.4

16

Further prohibitions with regard to related parties

3.5

17

Prohibition on lending to Principal Beneficiary

3.6

18

Donor register

3.7

19

Qualifications of the trustee

5.1

20

Extent of trustee responsibility

5.5

21

Powers of trustee

6.1

22

Standard of care

6.2

23

Investment strategy

6.3

24

Requirement to keep accounts

8.1

25

Financial statements and reporting

8.2

26

Audit requirements

8.3

27

Amending the trust

9.2

28

Definitions

9.3

29

Interpretation

9.4

30

Applicable law

9.5

31

Execution

E.1

\n```\n\n#### 8 Provisions that cannot be included in trust deed\n\n For paragraph 52ZZZWC(2)(d) of the Act, the following provisions cannot be included in the trust deed:\n (a) a provision that is inconsistent with a clause of the model trust deed mentioned in the table in subsection 7(2);\n (b) a provision that has the effect of overriding a clause of the model trust deed mentioned in that table.\n\n## Part 3 Reporting requirements\n\n#### 9 Qualifications of persons preparing financial statements\n\n For paragraph 52ZZZWF(2)(a) of the Act, the financial statements about a trust must be prepared by a person who:\n (a) is either or both of the following:\n (i) a member of CPA Australia, Chartered Accountants Australia and New Zealand, or Institute of Public Accountants;\n (ii) if a trustee corporation is a trustee of the trust – an employee of the trustee corporation engaged by the corporation as an accountant or financial planner; and\n (b) is not an immediate family member of any of the following:\n (i) the principal beneficiary of the trust;\n (ii) a residuary beneficiary of the trust;\n (iii) a trustee of the trust.\n\n#### 10 Information that must be included in financial statements\n\n (1) For subsection 52ZZZWF(3) of the Act, the financial statements for a trust must include information of the kind specified in subsections (2) to (5).\n (2) The financial statements must include:\n (a) a profit and loss statement for the trust for the relevant financial year; and\n (b) a balance sheet for the trust with applicable notes for the relevant financial year; and\n (c) notes that disclose:\n\n(i) the basis on which the financial statements were prepared, including whether they comply with the requirements of the Act and the trust deed; and\n\n(ii) the material accounting policies applied in the financial statements and the nature and extent of any changes in those accounting policies, including the reasons why applying the new accounting policy provides more relevant and reliable information; and\n\n (d) if the trust has depreciating assets - a depreciation schedule for each class of trust assets held by the trust for the relevant financial year.\n (3) The financial statements must give a true and correct view in all material particulars of the trust’s financial position and performance as at 30 June of the relevant financial year.\n (4) The financial statements must include a statement to the effect that, for the relevant financial year:\n (a) all amounts paid out of the trust (other than amounts paid for reasonable administration expenses and taxation) were paid:\n (i) to meet reasonable care and accommodation needs of the principal beneficiary; or\n (ii) for other purposes, ancillary to meeting the reasonable care and accommodation needs of the principal beneficiary, that are necessary or desirable to facilitate the meeting of those needs; or\n (iii) for other purposes that are primarily for the benefit of the principal beneficiary; and\n (b) no amount was paid out of the trust:\n (i) for purposes other than those mentioned in subparagraphs (a)(i), (ii) or (iii); or\n (ii) for services provided to the principal beneficiary by an immediate family member of the principal beneficiary.\n (5) The financial statements about the trust must be accompanied by a statutory declaration made by all trustees of the trust to the effect that all information given in the accordance with section 52ZZZWF of this Act and this Part is true and correct in all material particulars.\n\n#### 11 Income tax returns\n\n (1) For subsection 52ZZZWF(3) of the Act, subject to subsection (2), the financial statement about a trust must include a certified copy of the trust’s income tax return, completed and lodged in accordance with the Income Tax Assessment Act 1936 for the relevant financial year.\n (2) If section 95AB of the Income Tax Assessment Act 1936 applies to the trust’s income, a certified copy of the trust’s income tax return is not required.\n\n## ![](image.002.png) \nPart 4 Auditing requirements\n\n#### 12 Audit period\n\n For section 52ZZZWG of the Act, the audit of the trust must relate to the period specified by the person requesting the audit under subsection 52ZZZWG (3) of the Act, being a period of 1 to 5 financial years in the period of 5 financial years ending on the 30 June last preceding the request.\n\n#### 13 Qualifications of persons preparing audit\n\n For paragraph 52ZZZWG(5)(a) of the Act, the audit of the trust must be prepared by a person who:\n (a) is a member of:\n (i) CPA Australia; or\n (ii) Chartered Accountants Australia and New Zealand; or\n (iii) the Institute of Public Accountants; and\n (b) is not the person who prepared, or is preparing, any of the financial statements about the trust for the period to which the audit relates; and\n (c) is not an immediate family member of any of the following:\n (i) the principal beneficiary of the trust;\n (ii) a residuary beneficiary of the trust;\n (iii) a trustee of the trust.\n\n#### 14 Information that must be included in audit\n\n (1) For subsection 52ZZZWG(6) of the Act, the audit of the trust must include information of the following kind:\n (a) a statement to the effect that the trust’s financial statements give a true and fair view of the trust’s financial position and performance as at 30 June of each financial year to which the audit relates;\n (b) if the person requesting the audit under subsection 52ZZZWG(3) of the Act requests the audit for the purpose of determining whether the trust has met the requirements of all of the provisions of the trust deed — a statement indicating whether the trust has met the requirements of all of the provisions of the trust deed;\n (c) if the person requesting the audit under subsection 52ZZZWG(3) of the Act requests the audit for the purpose of determining whether the trust has met the requirements of specified provisions of the trust deed — a statement indicating whether the trust has met the requirements of those specified provisions of the trust deed.\n (2) Information mentioned in subsection (1) must comply with the relevant Australian Auditing Standards.\n\nSchedule 1—Repeals\n\nVeterans’ Entitlements (Special Disability Trust ─ Trust Deed, Reporting and Audit Requirements) Determination 2013\n\n1 The whole of the instrument\n\nRepeal the instrument.","sortOrder":10},{"sectionNumber":"9","sectionType":"section","heading":"Qualifications of persons preparing financial statements","content":"#### 9 Qualifications of persons preparing financial statements\n\n For paragraph 52ZZZWF(2)(a) of the Act, the financial statements about a trust must be prepared by a person who:\n (a) is either or both of the following:\n (i) a member of CPA Australia, Chartered Accountants Australia and New Zealand, or Institute of Public Accountants;\n (ii) if a trustee corporation is a trustee of the trust – an employee of the trustee corporation engaged by the corporation as an accountant or financial planner; and\n (b) is not an immediate family member of any of the following:\n (i) the principal beneficiary of the trust;\n (ii) a residuary beneficiary of the trust;\n (iii) a trustee of the trust.","sortOrder":11},{"sectionNumber":"10","sectionType":"section","heading":"Information that must be included in financial statements","content":"#### 10 Information that must be included in financial statements\n\n (1) For subsection 52ZZZWF(3) of the Act, the financial statements for a trust must include information of the kind specified in subsections (2) to (5).\n (2) The financial statements must include:\n (a) a profit and loss statement for the trust for the relevant financial year; and\n (b) a balance sheet for the trust with applicable notes for the relevant financial year; and\n (c) notes that disclose:\n\n(i) the basis on which the financial statements were prepared, including whether they comply with the requirements of the Act and the trust deed; and\n\n(ii) the material accounting policies applied in the financial statements and the nature and extent of any changes in those accounting policies, including the reasons why applying the new accounting policy provides more relevant and reliable information; and\n\n (d) if the trust has depreciating assets - a depreciation schedule for each class of trust assets held by the trust for the relevant financial year.\n (3) The financial statements must give a true and correct view in all material particulars of the trust’s financial position and performance as at 30 June of the relevant financial year.\n (4) The financial statements must include a statement to the effect that, for the relevant financial year:\n (a) all amounts paid out of the trust (other than amounts paid for reasonable administration expenses and taxation) were paid:\n (i) to meet reasonable care and accommodation needs of the principal beneficiary; or\n (ii) for other purposes, ancillary to meeting the reasonable care and accommodation needs of the principal beneficiary, that are necessary or desirable to facilitate the meeting of those needs; or\n (iii) for other purposes that are primarily for the benefit of the principal beneficiary; and\n (b) no amount was paid out of the trust:\n (i) for purposes other than those mentioned in subparagraphs (a)(i), (ii) or (iii); or\n (ii) for services provided to the principal beneficiary by an immediate family member of the principal beneficiary.\n (5) The financial statements about the trust must be accompanied by a statutory declaration made by all trustees of the trust to the effect that all information given in the accordance with section 52ZZZWF of this Act and this Part is true and correct in all material particulars.","sortOrder":12},{"sectionNumber":"11","sectionType":"section","heading":"Income tax returns","content":"#### 11 Income tax returns\n\n (1) For subsection 52ZZZWF(3) of the Act, subject to subsection (2), the financial statement about a trust must include a certified copy of the trust’s income tax return, completed and lodged in accordance with the Income Tax Assessment Act 1936 for the relevant financial year.\n (2) If section 95AB of the Income Tax Assessment Act 1936 applies to the trust’s income, a certified copy of the trust’s income tax return is not required.","sortOrder":13},{"sectionNumber":"Part 4","sectionType":"part","heading":"Auditing requirements","content":"## Part 1 Preliminary\n\n#### 1 Name\n\n This instrument is the Veterans’ Entitlements (Special Disability Trust ─ Trust Deed, Reporting and Audit Requirements) Determination 2023.\n\n#### 2 Commencement\n\n This instrument commences on the day after registration.\n\n#### 3 Authority\n\n This instrument is made under the following provisions of the Veterans’ Entitlements Act 1986:\n (a) subsection 52ZZZWC(2);\n (b) subsection 52ZZZWF(4);\n (c) subsection 52ZZZWG(7).\n\n#### 4 Interpretation\n\n> Note: Terms used in this instrument have the same meaning as they do in the Veterans’ Entitlements Act 1986. For example, the following terms are defined in that Act:\n\n> Note: immediate family member;\n\n> Note: principal beneficiary;\n\n> Note: Social Security Act;\n\n> Note: special disability trust.\n\n In this instrument:\n\n> Act means the Veterans’ Entitlements Act 1986.\n\n> Auditing and Assurance Standards Board means the Australian non-corporate government entity responsible for developing, issuing and maintaining standards relating to auditing and assurance.\n\n> Australian Auditing Standards means the standards issued by the Auditing and Assurance Standards Board as existing on the day this instrument commences.\n\n> Note: The Australian Auditing Standards could in 2023 be viewed online on the Auditing and Assurance Standards Board website (auasb.gov.au).\n\n> Department means the Department of Veterans’ Affairs.\n\n> model trust deed means the document named Model Trust Deed for Special Disability Trusts:\n\n (a) published by the department responsible for administering the Social Security Act; and\n (b) as existing on the day this instrument commences.\n\n> Note: The Model Trust Deed for Special Disability Trust could in 2023 be viewed online on the Department of Social Services website (dss.gov.au).\n\n> relevant financial year, for a reporting requirement for a trust, means the financial year in relation to which the trustees are required to give financial statements about the trust under subsection 52ZZZWF(1) of the Act.\n\n#### 5 Schedules\n\n Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.\n\n## Part 2 Trust deed requirements\n\n#### 6 Form of trust deed\n\n For paragraph 52ZZZWC(2)(a) of the Act, the form of the trust deed required for a special disability trust is the model trust deed, in writing.\n\n#### 7 Provisions which must be included in trust deed and form of provisions\n\n (1) For paragraph 52ZZZWC(2)(b) of the Act, the trust deed must include provisions dealing with each of the matters mentioned in column 2 of the table in subsection (2).\n (2) For paragraph 52ZZZWC(2)(c) of the Act, the provision in the trust deed dealing with a matter mentioned in column 2 for an item of the following table must be in the form of the clause of the model trust deed mentioned in column 3 for that item.\n\n```html\n

Provisions to be included and form of provisions

Column 1

Column 2

Column 3

Item

Matter

Clause of model trust deed

1

Date on which trust is made

P.1

2

Parties to the trust

P.2

3

Description of the Principal Beneficiary

1.1

4

Declaration of trust

1.2

5

Name of trust

1.3

6

Application of operative provisions

1.4

7

Duration of trust

1.5

8

Exclusion of settlors

1.7

9

Primary and other purposes of trust

2.1

10

Priority of Principal Beneficiary

2.2

11

Power to accumulate income

2.4

12

Contributions

3.1

13

Non-acceptable contributions

3.2

14

Restrictions on use of trust funds

3.3

15

Prohibition on borrowing

3.4

16

Further prohibitions with regard to related parties

3.5

17

Prohibition on lending to Principal Beneficiary

3.6

18

Donor register

3.7

19

Qualifications of the trustee

5.1

20

Extent of trustee responsibility

5.5

21

Powers of trustee

6.1

22

Standard of care

6.2

23

Investment strategy

6.3

24

Requirement to keep accounts

8.1

25

Financial statements and reporting

8.2

26

Audit requirements

8.3

27

Amending the trust

9.2

28

Definitions

9.3

29

Interpretation

9.4

30

Applicable law

9.5

31

Execution

E.1

\n```\n\n#### 8 Provisions that cannot be included in trust deed\n\n For paragraph 52ZZZWC(2)(d) of the Act, the following provisions cannot be included in the trust deed:\n (a) a provision that is inconsistent with a clause of the model trust deed mentioned in the table in subsection 7(2);\n (b) a provision that has the effect of overriding a clause of the model trust deed mentioned in that table.\n\n## Part 3 Reporting requirements\n\n#### 9 Qualifications of persons preparing financial statements\n\n For paragraph 52ZZZWF(2)(a) of the Act, the financial statements about a trust must be prepared by a person who:\n (a) is either or both of the following:\n (i) a member of CPA Australia, Chartered Accountants Australia and New Zealand, or Institute of Public Accountants;\n (ii) if a trustee corporation is a trustee of the trust – an employee of the trustee corporation engaged by the corporation as an accountant or financial planner; and\n (b) is not an immediate family member of any of the following:\n (i) the principal beneficiary of the trust;\n (ii) a residuary beneficiary of the trust;\n (iii) a trustee of the trust.\n\n#### 10 Information that must be included in financial statements\n\n (1) For subsection 52ZZZWF(3) of the Act, the financial statements for a trust must include information of the kind specified in subsections (2) to (5).\n (2) The financial statements must include:\n (a) a profit and loss statement for the trust for the relevant financial year; and\n (b) a balance sheet for the trust with applicable notes for the relevant financial year; and\n (c) notes that disclose:\n\n(i) the basis on which the financial statements were prepared, including whether they comply with the requirements of the Act and the trust deed; and\n\n(ii) the material accounting policies applied in the financial statements and the nature and extent of any changes in those accounting policies, including the reasons why applying the new accounting policy provides more relevant and reliable information; and\n\n (d) if the trust has depreciating assets - a depreciation schedule for each class of trust assets held by the trust for the relevant financial year.\n (3) The financial statements must give a true and correct view in all material particulars of the trust’s financial position and performance as at 30 June of the relevant financial year.\n (4) The financial statements must include a statement to the effect that, for the relevant financial year:\n (a) all amounts paid out of the trust (other than amounts paid for reasonable administration expenses and taxation) were paid:\n (i) to meet reasonable care and accommodation needs of the principal beneficiary; or\n (ii) for other purposes, ancillary to meeting the reasonable care and accommodation needs of the principal beneficiary, that are necessary or desirable to facilitate the meeting of those needs; or\n (iii) for other purposes that are primarily for the benefit of the principal beneficiary; and\n (b) no amount was paid out of the trust:\n (i) for purposes other than those mentioned in subparagraphs (a)(i), (ii) or (iii); or\n (ii) for services provided to the principal beneficiary by an immediate family member of the principal beneficiary.\n (5) The financial statements about the trust must be accompanied by a statutory declaration made by all trustees of the trust to the effect that all information given in the accordance with section 52ZZZWF of this Act and this Part is true and correct in all material particulars.\n\n#### 11 Income tax returns\n\n (1) For subsection 52ZZZWF(3) of the Act, subject to subsection (2), the financial statement about a trust must include a certified copy of the trust’s income tax return, completed and lodged in accordance with the Income Tax Assessment Act 1936 for the relevant financial year.\n (2) If section 95AB of the Income Tax Assessment Act 1936 applies to the trust’s income, a certified copy of the trust’s income tax return is not required.\n\n## ![](image.002.png) \nPart 4 Auditing requirements\n\n#### 12 Audit period\n\n For section 52ZZZWG of the Act, the audit of the trust must relate to the period specified by the person requesting the audit under subsection 52ZZZWG (3) of the Act, being a period of 1 to 5 financial years in the period of 5 financial years ending on the 30 June last preceding the request.\n\n#### 13 Qualifications of persons preparing audit\n\n For paragraph 52ZZZWG(5)(a) of the Act, the audit of the trust must be prepared by a person who:\n (a) is a member of:\n (i) CPA Australia; or\n (ii) Chartered Accountants Australia and New Zealand; or\n (iii) the Institute of Public Accountants; and\n (b) is not the person who prepared, or is preparing, any of the financial statements about the trust for the period to which the audit relates; and\n (c) is not an immediate family member of any of the following:\n (i) the principal beneficiary of the trust;\n (ii) a residuary beneficiary of the trust;\n (iii) a trustee of the trust.\n\n#### 14 Information that must be included in audit\n\n (1) For subsection 52ZZZWG(6) of the Act, the audit of the trust must include information of the following kind:\n (a) a statement to the effect that the trust’s financial statements give a true and fair view of the trust’s financial position and performance as at 30 June of each financial year to which the audit relates;\n (b) if the person requesting the audit under subsection 52ZZZWG(3) of the Act requests the audit for the purpose of determining whether the trust has met the requirements of all of the provisions of the trust deed — a statement indicating whether the trust has met the requirements of all of the provisions of the trust deed;\n (c) if the person requesting the audit under subsection 52ZZZWG(3) of the Act requests the audit for the purpose of determining whether the trust has met the requirements of specified provisions of the trust deed — a statement indicating whether the trust has met the requirements of those specified provisions of the trust deed.\n (2) Information mentioned in subsection (1) must comply with the relevant Australian Auditing Standards.\n\nSchedule 1—Repeals\n\nVeterans’ Entitlements (Special Disability Trust ─ Trust Deed, Reporting and Audit Requirements) Determination 2013\n\n1 The whole of the instrument\n\nRepeal the instrument.","sortOrder":14},{"sectionNumber":"12","sectionType":"section","heading":"Audit period","content":"#### 12 Audit period\n\n For section 52ZZZWG of the Act, the audit of the trust must relate to the period specified by the person requesting the audit under subsection 52ZZZWG (3) of the Act, being a period of 1 to 5 financial years in the period of 5 financial years ending on the 30 June last preceding the request.","sortOrder":15},{"sectionNumber":"13","sectionType":"section","heading":"Qualifications of persons preparing audit","content":"#### 13 Qualifications of persons preparing audit\n\n For paragraph 52ZZZWG(5)(a) of the Act, the audit of the trust must be prepared by a person who:\n (a) is a member of:\n (i) CPA Australia; or\n (ii) Chartered Accountants Australia and New Zealand; or\n (iii) the Institute of Public Accountants; and\n (b) is not the person who prepared, or is preparing, any of the financial statements about the trust for the period to which the audit relates; and\n (c) is not an immediate family member of any of the following:\n (i) the principal beneficiary of the trust;\n (ii) a residuary beneficiary of the trust;\n (iii) a trustee of the trust.","sortOrder":16},{"sectionNumber":"14","sectionType":"section","heading":"Information that must be included in audit","content":"#### 14 Information that must be included in audit\n\n (1) For subsection 52ZZZWG(6) of the Act, the audit of the trust must include information of the following kind:\n (a) a statement to the effect that the trust’s financial statements give a true and fair view of the trust’s financial position and performance as at 30 June of each financial year to which the audit relates;\n (b) if the person requesting the audit under subsection 52ZZZWG(3) of the Act requests the audit for the purpose of determining whether the trust has met the requirements of all of the provisions of the trust deed — a statement indicating whether the trust has met the requirements of all of the provisions of the trust deed;\n (c) if the person requesting the audit under subsection 52ZZZWG(3) of the Act requests the audit for the purpose of determining whether the trust has met the requirements of specified provisions of the trust deed — a statement indicating whether the trust has met the requirements of those specified provisions of the trust deed.\n (2) Information mentioned in subsection (1) must comply with the relevant Australian Auditing Standards.\n\nSchedule 1—Repeals\n\nVeterans’ Entitlements (Special Disability Trust ─ Trust Deed, Reporting and Audit Requirements) Determination 2013\n\n1 The whole of the instrument\n\nRepeal the instrument.","sortOrder":17}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"kimi_summary":{"_metrics":{"provider":"moonshot","completionTokens":3108},"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"This Determination replaces the 2013 version with the same title. It maintains the identical scope of regulating administrative, reporting and audit requirements for Special Disability Trusts under the Veterans' Entitlements Act 1986. The 2023 updates appear limited to refreshing external references (such as auditing standards and the model deed) to current versions without expanding the regulatory reach into new subject matters."},"complexity_factors":["Incorporation by reference of external documents: the Model Trust Deed (31 specific clauses) and Australian Auditing Standards (frozen as at commencement date).","Cross-references to three subsections of the Veterans' Entitlements Act 1986 and section 95AB of the Income Tax Assessment Act 1936.","7 defined terms in the interpretation section, including recursive definitions relying on the parent Act.","Detailed mandatory table with 31 items mapping legal matters to specific model deed clause numbers.","Multi-layered independence requirements for accountants and auditors (professional body membership plus family relationship exclusions).","Conditional logic regarding tax return requirements (exception if s 95AB ITAA 1936 applies)."],"plain_english_summary":"This Determination sets mandatory paperwork, accounting and audit rules for Special Disability Trusts for veterans: trusts must use the government Model Trust Deed, keep prescribed records, prepare annual financial statements and tax information by a qualified, non‑family accountant, and have trustees sign a statutory declaration. Independent audits may be required.\n\nIt affects veterans as beneficiaries, family trustees, accountants/auditors and the Department of Veterans' Affairs, ensuring trust funds are properly managed and spent only on the beneficiary’s care."},"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":false,"description":"This Determination replaces (repeals) the 2013 Determination (Schedule 1) and restates requirements for form of deed, required clauses, reporting and auditing. Its effect is largely to update and consolidate technical requirements (references to the model trust deed and current auditing standards as at commencement and clearer specifications of statement/audit content and preparer/auditor qualifications). It does not expand the class of persons covered or the fundamental policy purpose of prescribing deed form and financial oversight for special disability trusts; rather it updates the template, tightens/formalises some procedural detail (e.g. explicit membership requirements for preparers/auditors, trustee statutory declaration, and the audit‑period formulation) without materially changing the Determination’s original scope."},"complexity_factors":["31 mandatory matters listed in the model‑clause table (wide coverage of trust topics).","Multiple external cross‑references: Veterans’ Entitlements Act (subsections cited), Social Security Act (model deed published by that department), Income Tax Assessment Act 1936 (s 95AB), Australian Auditing Standards and Auditing and Assurance Standards Board.","Conditional rules and exceptions (e.g. tax return required unless s 95AB applies).","Independence and exclusion requirements with multiple actors (preparers, auditors, trustee corporation employees) and family‑relationship exclusions (ss 9, 13).","Flexible but bounded audit period (1–5 years selectable from the previous 5 years) (s 12).","Requirement that many deed provisions match model clause text exactly (s 7) and a prohibition on inconsistent or overriding clauses (s 8).","Statutory declaration requirement signed by all trustees (s 10(5)).","Dependence on external documents “as existing on commencement day” (model trust deed and Australian Auditing Standards), creating versioning/capture risk (Interpretation)."],"plain_english_summary":"**What this instrument does (mechanics)**\n\n- Sets the required legal form for a Veterans’ Entitlements special disability trust: trustees must use the published Model Trust Deed for Special Disability Trusts, in writing (see s 6). \n- Requires the trust deed to contain a fixed set of clauses and, for many topics, to use the exact clause text from the model trust deed (see s 7 and the table of 31 items, e.g. P.1, 1.1, 2.1, 3.3, 6.1, 8.2 etc.). \n- Forbids including deed terms that are inconsistent with or that override the listed clauses of the model deed (see s 8).\n- Prescribes who may prepare the trust’s annual financial statements and who may carry out an audit, and places family‑relationship and independence restrictions on those preparers and auditors (see ss 9 and 13).\n- Specifies precisely what must appear in the financial statements (profit & loss, balance sheet and notes, depreciation schedules where applicable), requires trustees’ statutory declaration, and requires a certified copy of the trust’s income tax return except where a specific income‑attribution tax rule applies (see ss 10–11).\n- Defines the possible audit period that may be requested (1–5 financial years, selected from the previous 5 years) and requires audit reports to comply with the Australian Auditing Standards and to state whether specified trust deed requirements were met (see ss 12 and 14).\n- Repeals the 2013 Determination and replaces it with this updated Determination (Schedule 1).\n\n(References in parentheses are to the sections of this Determination.)\n\n**Who is affected**\n\n- Trustees of special disability trusts established under the Veterans’ Entitlements Act (they must adopt the model trust deed and include the specified clauses) (s 6–8).\n- Principal beneficiaries of those trusts (their interests are the express priority in the model clauses and reporting requirements) (table items such as 2.1–2.4; s 10(4)).\n- Accountants and auditors who prepare trust financial statements or audits (they must hold membership of an approved accounting body or be specified employees of a trustee corporation, must be independent of the trustee/beneficiaries and must comply with professional auditing standards) (ss 9, 13, 14).\n- Donors and related parties (the model deed clauses and reporting/audit rules limit certain contributions, lending and related‑party transactions — see table items 3.1–3.7 and 3.4–3.6; and the reporting statements required at s 10(4)).\n- The Department of Veterans’ Affairs (it enforces the statutory reporting and may request audits under the Act; the Determination defines the form and content of what it can expect).\n\n**Why it matters (practical effects and incentives)**\n\n- Standardisation of deed terms: by requiring the model trust deed and exact clause forms for many matters (s 6–7), the instrument reduces variation between trusts. Mechanically, that makes government assessment and enforcement simpler because trusts must meet a known template. The cost is loss of contractual flexibility for trustees who might wish to tailor terms (s 8 prohibits inconsistent or overriding clauses).\n\n- Compliance and professionalisation costs: trustees must obtain financial statements prepared by qualified accountants (members of an approved professional body or specified trustee‑corp employees) who are not immediate family (s 9). Audits must be prepared by approved accountants not involved in preparing the financial statements and also not immediate family (s 13). These rules raise the minimum cost of compliance (fees for professional accountants and auditors) but aim to strengthen independence and reliability of reporting (ss 9, 13, 14).\n\n- Reporting detail and trustee attestation: financial statements must include standard financial statements, accounting policy notes, depreciation schedules if applicable, and a trustees’ statutory declaration that the material information is true (s 10(2)–(5)). This increases documentary burden on trustees but improves auditable transparency of how funds were used — especially that trust payments were for the principal beneficiary’s care and not for prohibited related‑party services (s 10(4)).\n\n- Audit scope and timing flexibility: the Determination allows a requesting person (normally the Department) to specify an audit period of between 1 and 5 financial years drawn from the previous 5 years (s 12). That gives the Department flexibility to examine past years without imposing an automatic recurring audit for every trust, but it also means a trustee can be asked to supply an auditor and records for multi‑year periods, which can increase retrospective compliance costs.\n\n- Interaction with tax law: the financial statement must normally include a certified copy of the trust’s income tax return (s 11(1)), but that is not required where section 95AB of the Income Tax Assessment Act 1936 applies (s 11(2)). That conditional rule prevents duplication where tax‑attribution rules already treat trust income as not requiring a separate return; it requires trustees and advisers to check cross‑legislation conditions.\n\n**Implementation and operational risks / trade‑offs**\n\n- Administrative friction: reliance on an externally published model trust deed and external auditing standards means trustees and their advisers must check the version current on the Determination’s commencement date (Interpretation). If the model deed or auditing standards change later, trusts created under this Determination rely on the versions “as existing on the day this instrument commences” unless the Act or later instrument says otherwise (Interpretation). \n\n- Concentrated vs diffuse effects: costs (accountant/auditor fees, recordkeeping) fall directly and concentrately on trustees (often small family groups or charities) while benefits — clearer administration and lower verification costs for government — are diffuse. The Determination narrows room for bespoke arrangements (s 8), which reduces negotiation space between family carers and trustees.\n\n- Risk of substitution: prohibitions on paying immediate family members for services (in the reporting attestation at s 10(4)(b)(ii)) and restrictions on related‑party transactions in the model deed may push families to formalise service arrangements through external providers, increasing cash outlays. Trustees will need to weigh the trust’s permitted expenditure items (table items 3.3 and related clauses) against the principal beneficiary’s practical needs.\n\n**Official rationale (as stated) and testing it against costs/incentives**\n\n- Officially the Determination defines the form and reporting/audit standards for special disability trusts; the implied policy goal is clearer, reliable, and independent financial reporting and consistent trust design. Mechanically that is achieved by prescribing the model deed (s 6–7), independence rules for preparers/auditors (ss 9, 13) and documentary/audit content (ss 10, 14). \n\n- Trade‑off summary: the measure increases standardisation and auditability at the cost of reduced drafting flexibility and higher professional compliance costs for trustees (ss 6–11, 13–14). The Determination limits possible conflicts of interest (immediate family exclusions) but may restrict informal family arrangements that some trustees used for convenience (s 10(4)).\n\n**Key sections to read first if you are a trustee or adviser**\n\n- Form and mandatory clauses: s 6 and s 7 (table of items). \n- Prohibited deed terms: s 8. \n- Who may prepare financial statements and audits: ss 9 and 13. \n- Required contents of financial statements and trustee statutory declaration: s 10 (and s 11 re tax returns). \n- Audit period and audit content standards: ss 12 and 14. \n- Repeal of earlier instrument: Schedule 1.\n"}},"importantCases":[],"_links":{"self":"/api/acts/f2023l01234","history":"/api/acts/f2023l01234/history","analysis":"/api/acts/f2023l01234/analysis","conflicts":"/api/acts/f2023l01234/conflicts","importantCases":"/api/acts/f2023l01234/important-cases","documents":"/api/acts/f2023l01234/documents"}}