Section 1209M — Social Security Act 1991: Beneficiary requirements

Single beneficiary rule (1) The trust must have no more than one beneficiary (the principal beneficiary), not including any residuary beneficiary. Impairment or disability conditions (2) If the principal beneficiary has reached 16 years of age: (a) the beneficiary must: (i) have an impairment that would qualify the person for disability support pension; or (ii) be receiving invalidity service pension under Part III of the Veterans’ Entitlements Act; or (iii) be receiving income support supplement under the Veterans’ Entitlements Act on the grounds of permanent incapacity; and (b) the beneficiary must: (i) have a disability that would, if the person had a sole carer, qualify the carer for carer payment or carer allowance; or (ii) be living in an institution, hostel or group home in which care is provided for people with disabilities, and for which funding is provided (wholly or partly) under an agreement, between the Commonwealth, the States and the Territories, nominated by the Secretary under subsection (3); and (c) the beneficiary must have a disability as a result of which either: (i) he or she is not working, and has no likelihood of working, for more than 7 hours a week for a wage that is at or above the relevant minimum wage; or (ii) he or she is working for wages set in accordance with the program administered by the Commonwealth known as the supported wage system. Note: For relevant minimum wage, see subsection 23(1). (3) The Secretary may, by legislative instrument, nominate an agreement for the purpose of subparagraph (2)(b)(ii). (4) If the principal beneficiary is under 16 years of age, subsection (4A) must apply to him or her. (4A) This subsection applies if: (a) the principal beneficiary is a person with a severe disability or a severe medical condition; and (b) another person (the carer) has been given a qualifying rating of intense under the Disability Care Load Assessment (Child) Determination for caring for the principal beneficiary; and (c) a treating health professional has certified in writing that, because of that disability or condition: (i) the principal beneficiary will need personal care for 6 months or more; and (ii) the personal care is required to be provided by a specified number of persons; and (d) the carer has certified in writing that the principal beneficiary will require the same care, or an increased level of care, to be provided to him or her in the future. Living beneficiary rule (5) A trust stops being a special disability trust when the principal beneficiary dies. Single trust rule (6) A trust is not a special disability trust for a particular principal beneficiary if, at the time of its creation, there is already another trust in existence for that person that is: (a) a special disability trust; or (b) a special disability trust within the meaning of the Veterans’ Entitlements Act.