Special Disability Trusts Explained
What a Special Disability Trust is, who it's for, its means-test and gifting concessions in general terms, and why it's separate from NDIS funding.
As families plan for the future, one term comes up often: the Special Disability Trust. It sounds technical, and the detail is genuinely complex, but the idea behind it is simple — a way for families to set aside money for a loved one's future care and accommodation, with some special concessions attached. This explainer covers the essentials in plain language, and why personal advice is essential…
What a Special Disability Trust is
The concessions, in general terms
Who it's for
It's separate from NDIS funding
Get advice before you act
Frequently asked questions
Is a Special Disability Trust part of the NDIS?
No. An SDT is a private financial and estate-planning arrangement using family money, governed by government trust and payment rules — not by the NDIS. The two can coexist: the NDIS funds disability supports, while an SDT may help with care and accommodation costs, but they're entirely separate.
What can a Special Disability Trust pay for?
Primarily the reasonable care and accommodation needs of the principal beneficiary, with some allowance for discretionary spending on their wellbeing. The rules define what's permitted, and there are reporting obligations. A solicitor experienced in SDTs can explain exactly what your trust could and…
Does my child qualify for a Special Disability Trust?
Not automatically. SDTs have their own defined eligibility around severe disability and work capacity, which differs from NDIS access rules. Qualifying for the NDIS doesn't guarantee SDT eligibility. Have the criteria checked by a professional or Services Australia before setting one up.
Are there real financial concessions?
Yes — broadly, a means-test assessment concession on trust assets up to a limit, and a gifting concession for eligible family contributions. The exact amounts are set by government, indexed and change over time, so we don't quote figures. Confirm current thresholds with Services Australia or an…
Do I need professional advice to set one up?
Strongly recommended. SDTs require a compliant trust deed, have spending and reporting rules, and interact with wills, payments and other beneficiaries. Getting the structure wrong can lose the concessions. A solicitor and financial adviser experienced in disability planning should guide the whole…