Families, Community Services and Indigenous Affairs and Other Legislation (2006 Budget and Other Measures) Act 2006
1209MBeneficiary requirements
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1209M Beneficiary requirements
Single beneficiary rule
(1) The trust must have no more than one beneficiary (the principal beneficiary), not including any residuary beneficiary.
Impairment or disability conditions
(2) If the principal beneficiary has reached 16 years of age:
(a) the beneficiary must:
(i) have an impairment that would qualify the person for disability support pension; or
(ii) be receiving invalidity service pension under Part III of the Veterans’ Entitlements Act; or
(iii) be receiving income support supplement granted on the ground set out in subparagraph 45A(1)(b)(iii) of the Veterans’ Entitlements Act; and
(b) the beneficiary must:
(i) have a disability that would, if the person had a sole carer, qualify the carer for carer payment or carer allowance; or
(ii) be living in an institution, hostel or group home in which care is provided for people with disabilities, and for which funding is provided (wholly or partly) under an agreement, between the Commonwealth, the States and the Territories, nominated by the Secretary under subsection (3); and
(c) the beneficiary must have a disability as a result of which he or she is not working, and has no likelihood of working, for a wage that is at or above the relevant minimum wage.
Note: For relevant minimum wage, see subsection 23(1).
(3) The Secretary may, by legislative instrument, nominate an agreement for the purpose of subparagraph (2)(b)(ii).
(4) If the principal beneficiary is under 16 years of age, he or she must be a profoundly disabled child within the meaning of section 197.
Living beneficiary rule
(5) A trust stops being a special disability trust when the principal beneficiary dies.
Single trust rule
(6) A trust is not a special disability trust for a particular principal beneficiary if, at the time of its creation, there is already another trust in existence for that person that is:
(a) a special disability trust; or
(b) a special disability trust within the meaning of the Veterans’ Entitlements Act.