Key Thresholds and Limits (Effective 1 July 2025)
| Category | 2025–26 Figure | Description |
| Assets Test Limit | $832,750 | Amount exempt from Centrelink/DVA assets test for the principal beneficiary. Indexed annually on 1 July. |
| Annual Discretionary Spending Limit | $14,750 | Maximum amount that can be used each financial year for discretionary (non-care/non-accommodation) expenses such as clothing, recreation, and utilities. Indexed annually. |
| Gifting Concession (Combined for Eligible Immediate Family) | $500,000 | Lifetime limit for eligible immediate family members contributing to the trust without affecting their own Centrelink/DVA entitlements. |
Compliance and Lodgement Requirements (FY 2025–26)
| Obligation | Requirement / Deadline |
| Financial Year Covered | 1 July 2025 – 30 June 2026 |
| Financial Statements Due | By 31 March 2027 |
| Who Can Prepare the Statements | Must be prepared by a qualified accountant — a member of CPA Australia, CA ANZ, or IPA — who is not an immediate family member of the beneficiary or trustee. |
| Documents Required | Financial statements (prepared to Australian Accounting Standards) and a Statutory Declaration from all trustees confirming accuracy and compliance with SDT rules. |
| Record Keeping | Maintain all invoices, bank statements, receipts, investment records, and evidence of allowable expenditure. |
| Audit Requests | DSS/DVA may request an audit (covering up to the past 5 years). The audit must be performed by an approved independent professional. |
Trustee Checklist (Annual Tasks)
- Maintain full transaction records for the year ending 30 June 2026.
- Engage a qualified preparer early (before December 2026).
- Ensure total discretionary spending does not exceed $14,750.
- Review investments and distributions for compliance with SDT purposes (care, accommodation, and ancillary needs).
- Complete the Statutory Declaration confirming compliance.
- Lodge financial statements and declaration by 31 March 2027 to Services Australia or DVA.
Common Pitfalls to Avoid
- Missing the 31 March 2027 lodgement deadline.
- Using an unqualified or related person to prepare statements.
- Spending above the discretionary limit or on non-permitted items.
- Failing to retain proper supporting documents.
Make Compliance Simple
Managing a Special Disability Trust can be complex — but it doesn’t have to be.
Contact us today and we’ll help you:
- Prepare your trust’s annual financial statements correctly
- Meet all reporting and audit requirements on time
- Keep your trust fully compliant with Centrelink and DVA rules
📞 Phone: 1300 133 135
📧 Email: sol.forman@formanfinanialserivces.com.au
🌐 Website: https://www.sdtservices.com.au/services/special-disability-trust-compliance-services/
Disclaimer and Warning
The information above is of a general nature only. It should not be used as a source to make financial decisions. It’s also important to note that the legislation and figures related to this topic tend to change regularly and therefore the information above may not reflect the current status. We recommend that if you are looking for advice on this matter, you should contact us.