Updated on July 19, 2024
What is a Disability Pension?
A disability pension is financial assistance provided to individuals who are unable to work due to a permanent or temporary disability.
This support helps cover living expenses and provides a safety net for those whose disabilities limit their ability to earn an income.
The Disability Support Pension (DSP) is designed to ensure that people with disabilities can maintain a reasonable standard of living despite their inability to work full-time or at all.
Who is Eligible to Receive a Disability Support Pension?
To be eligible for a Disability Support Pension (DSP), you must meet both non-medical and medical criteria.
Non-Medical Rules:
- Age Requirement: You must be between 16 and Age Pension age (currently 66, increasing to 67 in July 2023).
- Residency Requirement: You must have been an Australian resident for at least 10 years, with at least 5 of those years in a row. Exceptions include being a resident in an agreement country or a refugee.
- Income and Assets Test: Your total income and assets must be below certain limits. Even non-work income can affect your eligibility.
Medical Rules: You need to meet either manifest or general medical rules.
Manifest Medical Rules: Eligibility is automatic if you have:
- Permanent blindness
- A need for ongoing nursing home care
- A terminal illness with less than two years life expectancy
- An intellectual disability with an IQ below 70
- Category 4 HIV or AIDS
- Special Disability Pension Rates from the Department of Veterans’ Affairs
General Medical Rules: To qualify, you must:
- Have a condition expected to last at least two years
- Have a fully diagnosed, treated, and stabilized condition
- Have an impairment rating of 20 points or more
- Meet the Program of Support rules (if applicable)
- Be unable to work at least 15 hours a week
How Much is the Disability Pension in Australia?
The DSP provides higher payments than unemployment benefits, and the amount you receive depends on various factors including your living situation, income, and additional supplements.
Currently, the basic rates are:
- Single: $1020.60 per fortnight
- Each member of a couple: $769.30 per fortnight
Additional Supplements:
- Pension Supplement: Automatically included for those 21 or older, or younger than 21 with a dependent child.
- Energy Supplement: Included automatically, varying by age and living situation.
For a single adult over 21, the total maximum payment per fortnight is:
- Basic rate: $1,020.60
- Pension supplement: $81.60
- Energy supplement: $14.10
- Total: $1,116.30
Advance Payments:
If needed, individuals can apply for an advance on their DSP, which is repayable over time from future payments. The amount and frequency of advances are regulated to ensure financial stability.
Is the Disability Pension Taxable?
For Total and Permanent Disability (TPD), benefits are usually tax-free. Carer Payment and DSP are tax-free if you are under the Age Pension age but must be included in your tax return for tax offset calculations.
Can You Work on a Disability Pension?
Yes, you can work up to 29 hours a week without losing your DSP payment, provided you meet the income test.
Is Eligibility for the DSP Dependent on Individual Contributions?
No, eligibility is based on general Commonwealth government revenue, not individual contributions.
How Do I Apply for a Disability Support Pension?
Apply online via your myGov account, over the phone by calling Centrelink, or in person at a service centre.
Looking for reliable and trustworthy care services?
At Centre Disability Support, we offer tailored support services for individuals with disabilities throughout Australia. We offer housing options in Logan, Ipswich and Brisbane areas, where we provide independent supported living or assist individuals in finding suitable options for individualised living.
Additionally, we provide day-to-day support for individuals with mental health issues, complex behaviour and other types of disabilities. We also have support coordinators available to assist with planning, navigating NDIS plans, and offering casework support.
Whether you’re seeking support for yourself, or a loved one, or simply wish to learn more about our services, we’re here to help.
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