Commonwealth Consolidated Acts

SOCIAL SECURITY ACT 1991 - SECT 1209Z

  (1)   If a person transfers an asset (the transferred asset ) to a special disability trust, the transfer is taken not to be a disposal of the asset (within the meaning of section   1123) if:

  (a)   the person is an immediate family member of the principal beneficiary of the trust; and

  (b)   the person, or the person's partner:

  (i)   is receiving a social security pension and has reached pension age; or

  (ii)   is receiving a service pension and has reached pension age within the meaning of the Veterans' Entitlements Act; or

  (iii)   is receiving income support supplement and has reached qualifying age within the meaning of section   5Q of the Veterans' Entitlements Act; or

  (iv)   is receiving a veteran payment and has reached pension age; and

  (c)   the person receives no consideration, and is not entitled to any consideration, for the transfer; and

  (d)   the transfer is unconditional; and

  (e)   the value of the transferred asset does not exceed $500,000; and

  (f)   in a case where there has already been a transfer to which this section has applied (an exempt transfer ), by that person or any other person, to the trust or any other special disability trust that had the same principal beneficiary--the sum of:

  (i)   the values of all of the assets transferred, by exempt transfers that have already been made, to the trust or any other special disability trust that had the same principal beneficiary; and

  (ii)   the value of the transferred asset;

    does not exceed $500,000.

Note 1:   For special disability trust , see section   1209L.

Note 2:   For immediate family member , see subsection   23(1).

Note 3:   For pension age (except for the purposes of subparagraph   (1)(b)(ii) of this section), see subsections   23(5A) to (5D).

Note 4:   For social security pension , service pension and income support supplement , see subsection   23(1).

  (2)   This section has effect subject to sections   1209ZA and 1209ZD.

  (3)   In this section:

"other special disability trust" includes a special disability trust within the meaning of the Veterans' Entitlements Act.

"value" , of an asset transferred to a special disability trust, means the market value of the asset at the time of the transfer.