4.14.3.50 Reporting Requirements for Special Disability Trusts

Summary

This topic contains information on the following:

• required information,
• reporting timeframe, and
• who can prepare the financial statements.

Required information

The trustee must provide the financial statements of the trust as at 30 June of the relevant financial year in accordance with the Income Tax Assessment Act 1936. The financial statements must include information, which complies with the Australian Accounting Standards, including:

• profit and loss statement for the relevant financial year,
• balance sheet with applicable notes for the relevant financial year, and
• depreciation schedule for each class of assets for the relevant financial year (where applicable).

If the trust was required by the ATO to lodge a tax return, a copy of the tax return for the relevant financial year must also be provided.

A statutory declaration must be included that confirms that:

• expenditure for the relevant financial year (apart from reasonable trust administration costs and taxes) was spent on:
  • care costs related to the principal beneficiary's disability, or
  • accommodation costs of the principal beneficiary, or discretionary spending for the benefit of the beneficiary, and
• expenditure for the relevant financial year was not spent on payments to any 'immediate family member', for services, including care provided to the principal beneficiary, and

• the trustees have declared that the information provided therein is all true and correct, and
• a tax return was not required by the ATO, (if applicable).

Reporting timeframe

The financial statements and statutory declaration must be provided on or before 31 March each year for the previous complete financial year.

A waiver notice may be given in limited circumstances where the financial statements are delayed.

Who can prepare the financial statements

Where one of the trustees is a trustee corporation, the financial statements must be prepared in accordance with the regulatory and legislative requirements applying to trustee corporations.

Where none of the trustees is a trustee corporation, the financial statements must be prepared by a person who is a member of CPA Australia, the Institute of Chartered Accountants in Australia, the National Institute of Accountants, an employee of a trustee corporation who is engaged by the corporation as an accountant or financial planner, or by a person approved by the Secretary for the purpose. They cannot be an immediate family member of the principal beneficiary or the trustee.