10   SPECIAL DISABILITY TRUSTS—REPORT FROM MAIN COMMITTEE

The Speaker reported that the order of the day relating to the private Members’ motion on Special Disability Trusts had been debated in the Main Committee and returned to the House, and presented a certified copy of the motion viz.: Mrs Moylan—That this House:

(1)    acknowledges the work of carers, and in particular ageing parents caring for profoundly disabled dependents;

(2)    recognises that ageing parent carers remain deeply concerned about the diminishing capacity to care for their dependent children;

(3)    appreciates the special challenges faced by families, and in particular ageing parents, who wish to make provision for the needs of their disabled dependents;

(4)    notes that:

(a)    disability trusts were established in September 2006 by the Coalition Government to assist families make provision for the future housing and care needs of dependents with severe disabilities;

(b)   despite the Department of Families, Housing, Community Services and Indigenous Affairs estimating that over four years, 5000 people with severe disability would benefit from Special Disability Trusts, as at 31 March 2010, 423 people have been assessed as eligible, and only 91 trusts have been established; and

(c)    since establishing Special Disability Trusts, it has become apparent that the conditions governing eligibility and management, as well as direct and wider taxation implications, have limited the workability and uptake of the trusts;

(5)    acknowledges that conditions diminishing the attractiveness of the trusts include the:

(a)    complex application of taxation rules;

(b)   inflexibility in what trust funds may be used for;

(c)    inability for beneficiaries, through Special Disability Trusts, to claim the first home owners grant and other home saving initiatives;

(d)   high initial eligibility threshold requiring a beneficiary to be eligible for at least a Carer Allowance, the regulations of which state, inter alia, that care for a ‘significant period’ must be given, defined as at least 20 hours a week of care;

(e)    eligibility requirements disfavouring mental impairment disabilities; and

(f)    attribution of Capital Gains Tax to transferors where, in particular, houses are placed into Special Disability Trusts;

(6)    condemns the Government for not taking seriously the recommendations outlined in the October 2008 Senate Standing Committee on Community Affairs report entitled: Building Trust, Supporting Families through Disability Trusts; and

(7)    calls on the Government to fully examine the viability of implementing the Senate Committee’s recommendations with a view to assisting ageing parents to adequately address the future needs of their profoundly disabled dependents—

Debate resumed by Mrs Moylan who moved, by leave, that the motion be amended to read—That this House:

(1)    acknowledges the work of carers, and in particular ageing parents caring for profoundly disabled dependents;

(2)    recognises that ageing parent carers remain deeply concerned about the diminishing capacity to care for their dependent children;

(3)    appreciates the special challenges faced by families, and in particular ageing parents, who wish to make provision for the needs of their disabled dependents;

(4)    notes that:

(a)    disability trusts were established in September 2006 by the Coalition Government to assist families make provision for the future housing and care needs of dependents with severe disabilities;

(b)   despite the Department of Families, Housing, Community Services and Indigenous Affairs estimating that over four years, 5000 people with severe disability would benefit from Special Disability Trusts, as at 31 March 2010, 423 people have been assessed as eligible, and only 91 trusts have been established; and

(c)    since establishing Special Disability Trusts, it has become apparent that the conditions governing eligibility and management, as well as direct and wider taxation implications, have limited the workability and uptake of the trusts;

(5)    acknowledges that conditions diminishing the attractiveness of the trusts include the:

(a)    complex application of taxation rules;

(b)   inability for beneficiaries, through Special Disability Trusts, to claim the first home owners grant and other home saving initiatives;

(c)    high initial eligibility threshold requiring a beneficiary to be eligible for at least a Carer Allowance, the regulations of which state, inter alia, that care for a ‘significant period’ must be given, defined as at least 20 hours a week of care; and

(d)   attribution of Capital Gains Tax to transferors where, in particular, houses are placed into Special Disability Trusts;

(6)    calls upon the Government to consider implementing specific eligibility criteria for mental impairment disabilities if the measures introduced in the Families, Housing, Community Services and Indigenous Affairs and Other Legislation Amendment (Budget and Other Measures) Bill 2010 do not increase uptake within 12 months; and

(7)    notes the Government’s good faith negotiations in relation to the recommendations of the October 2008 Senate Standing Committee on Community Affairs Report entitled: Building Trust, Supporting Families through Disability Trusts, acknowledges the commitment to further investigate outstanding issues to meet the future needs of people with profound disabilities and their carers—

Question—That the amendments be agreed to—put and passed.

Question—That the motion, as amended, be agreed to—put and passed.