EXPLANATORY STATEMENT

Social Security (Special Disability Trust – Discretionary Spending) (DEEWR) Determination 2011

Summary

The Social Security (Special Disability Trust – Discretionary Spending) (DEEWR) Determination 2011 (the Determination) is made under subsection 1209RA(3) of the Social Security Act 1991 (the Act).  The purpose of the Determination is to set out the maximum amount of a special disability trust’s income and assets that can be spent for purposes that are primarily for the benefit of the principal beneficiary.

The Determination is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

Section 1 sets out the name of the Determination.

Section 2 provides that the Determination is taken to have commenced on 1 January 2011.  The reason this Determination commences retrospectively is due to legislative amendments which were made to Part 3.18A of the Act by the Families, Housing, Community Services and Indigenous Affairs and Other Legislation Amendments (Budget and Other Measures) Act 2010 and have a retrospective commencement date of 1 January 2011.  The changes relate to a broadening of the purpose requirements from a sole purpose to a primary purpose of the trust.  The amendments also introduce a new purpose which allows the trust to undertake a level of discretionary spending for other purposes that are primarily for the benefit of the principal beneficiary.  These changes are beneficial in nature.  Retrospective commencement of this Determination does not affect the rights of a person so as to disadvantage that person or impose any liabilities in respect of anything done or omitted to be done before the date of registration.

Section 3 provides definitions of terms used in the Determination.

Section 4 provides that, for the purposes of subsection 1209RA(3) of the Act, the maximum value of the trust’s income and assets that can be spent by the special disability trust for other purposes that are primarily for the benefit of the principal beneficiary (other than the primary purposes of a special disability trust), is:

(a) ten thousand dollars ($10,000) in the 2010-2011 financial year; and

(b) ten thousand, two hundred and fifty dollars ($10,250) in the 2011-2012 financial year. 

Consultation

The Department of Families, Housing, Community Services and Indigenous Affairs and the Department of Veterans’ Affairs were consulted in the making of this Determination, to ensure a co‑ordinated approach. 

Regulation Impact Statement

There was no requirement to prepare a Regulation Impact Statement in regard to the Determination, as this measure is not likely to have a direct, or a substantial indirect, effect on business and is not likely to restrict competition.