Setting up a Special Disability Trust can help families plan for the long term care and financial security of a loved one with severe disability. Before creating the trust, however, it is important to understand Centrelink eligibility rules, reporting obligations, and the professional advice needed to avoid costly mistakes.

Planning for the future of a loved one with disability can feel overwhelming. One option many Australian families consider is a Special Disability Trust (SDT), which can help provide long term financial support for care and accommodation needs.

However, before paying legal fees or creating trust documents, there is one important first step many families overlook.

Speak to Centrelink first.

At Health & Finance Integrated, we regularly help families navigate the financial, care, and planning considerations involved in disability support and future planning. Starting with the right information can save significant time, stress, and unnecessary expense.

What Is a Special Disability Trust?

A Special Disability Trust is a legal structure designed to assist immediate family members to financially support a person with severe disability.

An SDT may help cover:

• accommodation costs
• medical and therapy expenses
• personal care needs
• disability support services
• approved discretionary expenses

There can also be Centrelink concessions available for eligible contributions made into the trust.

You can read more about Special Disability Trusts on the official Services Australia website:
https://www.servicesaustralia.gov.au/special-disability-trusts

Why You Should Contact Centrelink Before Setting Up the Trust

Not everyone automatically qualifies for a Special Disability Trust.

The beneficiary must meet strict eligibility requirements under Centrelink or the Department of Veterans’ Affairs. Families should confirm this before proceeding with legal setup.

Speaking with Centrelink early can help clarify:

• whether the person meets the “severe disability” criteria
• what medical evidence is required
• how the trust may affect Disability Support Pension or other payments
• what the trust can legally pay for
• annual reporting and compliance obligations

This early step can potentially save families thousands of dollars in legal restructuring later.

Step 1: Speak to the Financial Information Service (FIS)

The best starting point is Centrelink’s Financial Information Service (FIS).

FIS officers provide free information about:

• Special Disability Trusts
• income and asset rules
• pension impacts
• gifting limits
• financial planning considerations

You can contact FIS through Centrelink on:
132 300
Ask for the Financial Information Service.

Official FIS information is available here:
https://www.servicesaustralia.gov.au/financial-information-service

Step 2: Work With Experienced Professionals

Once eligibility becomes clearer, families should seek advice from professionals experienced in:

• disability planning
• estate planning
• trusts
• aged care and support systems
• financial strategy

At Health & Finance Integrated, we help families understand how disability planning fits within broader financial wellbeing, care support, and long term security planning.

Our team can help coordinate:

• financial guidance
• referral pathways
• support planning
• care related financial considerations
• connections with appropriate legal professionals

Learn more about our services here:
https://healthfinance.com.au/our-services/special-disability-trusts-investing-governance/

Questions Families Should Ask

When exploring a Special Disability Trust, useful questions include:

1. Does the beneficiary meet Centrelink eligibility requirements?
2. Who should act as trustee?
3. What assets can be placed into the trust?
4. How will the trust affect pensions or supports?
5. What ongoing reporting obligations apply?

Final Thoughts

A Special Disability Trust can provide long term peace of mind for families caring for someone with severe disability.

But before creating trust documents, the smartest first step is simple:
speak to Centrelink and seek informed professional guidance.

Having the right advice early can make the process smoother, more affordable, and less stressful for everyone involved.

For personalised guidance and support planning, contact the team at Health & Finance Integrated:
https://healthfinance.com.au/contact/

1300 10 44 99