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Below is Chapter 11 of our ‘Special Disability Trusts’ booklet. To read the other chapters of our booklet, click the links below:
- Chapter 1 – What is an SDT?
- Chapter 2 – What are the requirements of an SDT?
- Chapter 3 – What can an SDT pay for?
- Chapter 4 – What are the eligibility criteria of an intended beneficiary?
- Chapter 5 – Do you need medical reports confirming the disability?
- Chapter 6 – What are the advantages of an SDT?
- Chapter 7 – What is the effect of the gifting concession?
- Chapter 8 – What is the effect of the assets test assessment exemption?
- Chapter 9 – Are there beneficial taxation consequences?
- Chapter 10 – What are the administrative requirements of an SDT?
- Chapter 12 – What are the ongoing obligations of an SDT?
- Chapter 13 – Summary
Please note that the information in this booklet is current as at the 2025/2026 financial year.
Once an SDT has been established, anyone can make a contribution into the SDT subject to a number of exceptions.
A beneficiary or the beneficiary’s partner cannot transfer any assets into an SDT, including any compensation received by or on behalf of the principal beneficiary (for example, damages received from a personal injury claim). The reason behind this restriction
is that SDTs are not intended to allow a beneficiary to move their assets into a non-assessable environment for social security purposes.
This investment restriction mirrors the restriction on superannuation funds from intentionally acquiring an asset from a related party to the fund (i.e. a member).
The ‘blanket ban’ against beneficiary contributions for SDTs does not apply to the following assets:
- All or part of a bequest (gifts received by Will); and
- Superannuation death benefits,
provided that the beneficiary transfers the assets into the SDT within 3 years of receipt of the bequest or superannuation death benefit.
For example, John’s mother set up a SDT for him in 2020. John’s grandfather died on 30 April 2022 leaving John $50,000 in his will. John can transfer the money into his SDT provided he does so by 30 April 2025.
The information contained in this post is current at the date of editing – 04 August 2025.
