The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

4.12.3.70 Excluded Trusts

Date of effect

This topic has effect from 1 January 2002.

Excluded trusts

Specified classes of trusts that are excluded from the attribution process in the SSAct Part 3.18 are:

  • community trusts, and
  • fixed trusts created before 7.30pm on 9 May 2000.

Act reference: SSAct section 1207P(4) Excluded trusts, Social Security (Means Test Treatment of Private Trusts – Excluded Trusts) Declaration 2025

Community trusts

Each trust that is a community trust is an excluded trust for the purposes of SSAct section 1207P. A community trust is a trust that has the sole or dominant purpose of:

  • receiving, managing and distributing property transferred directly to it, or to it through an interposed entity, by a government body for a community purpose, or
  • holding, managing or disposing of Indigenous-held land, for a community purpose, or
  • receiving, managing or distributing income that:
    • has been generated from the use of Indigenous-held land, and
    • is applied for a community purpose.

Example: Grants under the Aboriginal and Torres Strait Islander Commission Act 1989.

Fixed trusts created before 7.30pm on 9 May 2000

A fixed trust created before 7.30pm, standard time in the Australian Capital Territory, on 9 May 2000 is an excluded trust for the purposes of SSAct section 1207P. However, if after 7.30pm on 9 May 2000 the trust has been varied under the trust deed or there has been a transfer of property (other than income generated by the trust) to the trust, it is no longer an excluded trust.

Classes of trusts that are NOT excluded

Trusts that are NOT excluded from the rules relating to private trusts are:

  • a testamentary trust created as a result of a grant of probate
  • a trust created or declared by order of the Family Court
  • a court-ordered (statutory) trust (see 4.12.3.80 for more information)
  • a trust created or declared by a court, tribunal or arbitrator as a result of a property settlement, or
  • a trust created as a result of a property settlement, without a court order.

If the trust is not one that is specifically excluded under SSAct Part 3.18 then the rules in relation to attribution are to apply.

Act reference: SSAct section 1207P Designated private trusts

Policy reference: SS Guide 4.12.3.80 Assessable Income & Assets from Court-Ordered (Statutory) Trusts, 4.12.3.30 Testamentary Trusts

Last reviewed: