Social Security (Special Disability Trust) Amendment Guideline 2016 (Cth)

Social Security (Special Disability Trust) Amendment Guideline 2016

Social Security Act 1991

I, FINN PRATT, Secretary of the Department Social Services, make this guideline under subsection 1209U (4) of the Social Security Act 1991.

Dated: 31 May 2016

Finn Pratt

Secretary of the Department of Social Services

1. Name of guideline

This guideline is the Social Security (Special Disability Trust) Amendment Guideline 2016.

1. Commencement

This guideline commences on the day after it is registered on the Federal Register of Legislation.

3              Amendment of the Social Security (Special Disability Trust) (FaHCSIA) Guidelines 2011

Schedule 1 amends the Social Security (Special Disability Trust) (FaHCSIA) Guidelines 2011.

Schedule 1        Amendment

(Section 3)

[1]           Name of Guidelines

Repeal the name, substitute:

Social Security (Special Disability Trust) Guidelines 2011

1. Part 1, section 1.1

Repeal the section, substitute:

These Guidelines are the Social Security (Special Disability Trust) Guidelines 2011.

1. Part 3, after subsection 3.2(2)

Insert:

(3) Subject to subsection (4), the Secretary may decide to give a waiver notice to the trustees of a trust in relation to a contravention of paragraph 1209R(1)(b) of the Act if satisfied that:

(a)   the contravention occurred as a result of court proceedings relating to the transferred asset; or

(b)   the contravention occurred because:

(i)         the transferor transferred the asset within the timeframe under paragraph 1209R(1)(b) to a trust intended to be a special disability trust (the first trust); and

(ii)        the first trust is not a special disability trust because of a contravention of a requirement of Division 1 of Part 3.18A of the Act; and

(iii)       the asset is transferred by the transferor to a special disability trust; or

(c)the transferor:

(i)transferred the asset to a trust intended to be a special disability trust after the end of the 3 year period mentioned in paragraph 1209R(1)(b) of the Act; and

(ii)can show there was an intention to transfer the asset to the trust before the end of that 3 year period.

(4)   The Secretary may decide to give a waiver notice to the trustees of a trust in the circumstances set out in subsection (3) if satisfied of the following matters:

(a)   the contravention does not involve fraudulent conduct;

(b)   the contravention in relation to the first trust does not involve fraudulent conduct;

(c)   having regard to all the circumstances, including the nature of the contravention in relation to the first trust, the requirement should be waived.

(5)   Sections 3.4 and 3.5 do not apply to this section.