Commonwealth Consolidated Acts

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SOCIAL SECURITY ACT 1991 - SECT 1209N

Trust purpose requirements

Primary purpose--care and accommodation for principal beneficiary

             (1)  Subject to this section, the primary purpose of the trust during the lifetime of the principal beneficiary, as provided by the trust deed for the trust, must be to meet reasonable care and accommodation needs of the beneficiary.

Note:          The provision of care and accommodation for the principal beneficiary is also dealt with at section 1209R.

Other purposes

             (2)  The trust may have other purposes that are:

                     (a)  both ancillary to the primary purpose and necessary or desirable to facilitate the achievement of that purpose; or

                     (b)  primarily for the benefit of the principal beneficiary.

Note 1:       A particular purpose may be covered by both of paragraphs (2)(a) and (b).

Note 2:       The application of the income and assets of the trust for purposes (other than the primary purpose) that are primarily for the benefit of the principal beneficiary is dealt with by section 1209RA.

Guidelines relating to purposes

             (3)  If guidelines are made under subsection (4) then, for the purposes of this section:

                     (a)  the reasonable care and accommodation needs of a principal beneficiary of a special disability trust must be decided in accordance with the guidelines if they deal with those needs; and

                     (b)  purposes, other than the primary purpose of a special disability trust, that are primarily for the benefit of the principal beneficiary of a trust must be decided in accordance with the guidelines if they deal with those other purposes.

             (4)  The Secretary may, by legislative instrument, make guidelines for deciding either or both of the following for the purposes of this section:

                     (a)  what are, and what are not, reasonable care and accommodation needs for beneficiaries of trusts;

                     (b)  what are, and what are not, trusts' purposes, other than the primary purpose described in subsection (1), that are primarily for the benefit of beneficiaries of the trusts.



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