Hey all, I'm currently 25 and on the disability support pension deemed severe with no work capacity 
my father is interested in setting up a "special disability support trust". He's on a payg salary paying 40k p.a in tax and has no ip's but wants to put me in a property possibly under this trust, from what I understand in a disability trust the trust is taxed on my income and not the income of my father. Therefore he can use the saved tax dollars to buy a property and help me get a foot out there. We don't entirely understand how trusts work and he believes as he is a PAYG earner his salary will go into the trust after tax and receive no benefit.. but that would defeat the purpose of the trust in the first place as there would be no tax concessions?
Or the salary contributed into the trust pre tax therefore instead of being taxed at 47c in the dollar above the 80k+ threshold it would be at my tax rate? I believe that's the case according to this:
"A Special Disability Trust?s unexpected income is taxed at the beneficiary?s personal income tax rate(s), rather than at the highest marginal tax rate."
We believe this means any contributions from his salary will be taxed at the rate of my income and not his whopping 47c in every dollar. Ia that likely be the case? I guess our next step is to book an appointment with an accountant or financial adviser however we're unsure how much experience they'd have setting up these disability trusts as I'd imagine they'd be pretty uncommon to most people. If knows anything about them or could help us shed some light it would be much appreciated, cheers
my father is interested in setting up a "special disability support trust". He's on a payg salary paying 40k p.a in tax and has no ip's but wants to put me in a property possibly under this trust, from what I understand in a disability trust the trust is taxed on my income and not the income of my father. Therefore he can use the saved tax dollars to buy a property and help me get a foot out there. We don't entirely understand how trusts work and he believes as he is a PAYG earner his salary will go into the trust after tax and receive no benefit.. but that would defeat the purpose of the trust in the first place as there would be no tax concessions? Or the salary contributed into the trust pre tax therefore instead of being taxed at 47c in the dollar above the 80k+ threshold it would be at my tax rate? I believe that's the case according to this:
"A Special Disability Trust?s unexpected income is taxed at the beneficiary?s personal income tax rate(s), rather than at the highest marginal tax rate."
We believe this means any contributions from his salary will be taxed at the rate of my income and not his whopping 47c in every dollar. Ia that likely be the case? I guess our next step is to book an appointment with an accountant or financial adviser however we're unsure how much experience they'd have setting up these disability trusts as I'd imagine they'd be pretty uncommon to most people. If knows anything about them or could help us shed some light it would be much appreciated, cheers
