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Work and the DSP (Easy Read)

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The Disability Support Pension (DSP) is paid by the government.

It is for people with disability who cannot work or need support to work.

What some people think

Lots of people who get the DSP think they lose money if they do paid work.

This is not true.
 

Sometimes people are told it is good to get a very low wage so they don’t affect their DSP.

This is not true.

You are always better off if you earn an income

The Australian Government wants people with disability to work.

The DSP has rules that let you do quite a bit of work without losing your DSP.
 

The rules say:

  • you can work up to 29 hours each week before you stop getting the DSP
  • if you are single and 21 or older, in 2020 you can earn $1,033.30 each week before you stop getting the DSP!

  • if you are a couple or under 21 it will be a bit different.

You are still better off.

How does earning an income affect my DSP?

Some of this information may sound confusing.

It is okay to get someone to help you understand it.

The DSP rules say how much you can earn before your DSP changes.
 

In 2020 you can earn $178 each fortnight from having a job and your DSP stays the same.

For every extra dollar you earn after $178, your DSP will go down 50 cents.

But this means you are still 50 cents better off for every extra dollar you earn.

Here are some examples:

  • If you earn $0 each fortnight you get your DSP.
  • If you earn $178 from a job each fortnight you get your DSP + $178.
  • If you earn $578 from a job each fortnight you get (DSP – $200) + $578.

That means you get some DSP + $578.

Can you see that working means you end up with more money?

The 2-year rule

 

If you do earn too much, you still won’t lose your DSP.

But your DSP money can be stopped for 2 years.

This is called the 2-year rule.

The 2-year rule is a good thing.

It means you can earn more money without losing your DSP.

If you lose your job or your income drops:

  • you do not need to apply for the DSP
  • your DSP will start again when you tell Centrelink about the change.

Your DSP money can be stopped for 2-years if you:

  • work 30 hours or more each week

or

  • earn more than the cut-off limit.
 

The cut-off limit is the most money you can earn before the government stops your DSP money.

You can have the pensioner Concession Card for 1 year after your DSP money stops.

Concession Card is sometimes called a pension card.

It lets you get special benefits like cheaper medication.
 

An example of the 2-year rule is:

Jurrah is 22 and is on a DSP.

He got a job in open employment.
 

He packs flowers to send from the warehouse to the shops.

He is on an award wage.
 

Because he works 30 hours each week, Jurrah’s DSP was stopped.

But Jurrah was paid more than his pension for working.

And Jurrah got to keep his concession card.
 

After 6 months, work got quiet.

Jurrah’s hours went down to 25 hours each week.

Jurrah told Centrelink this.

His DSP money started again; Jurrah also still got his pay from work.
 

Jurrah was always better off working.
 

Here is an example if you have worked more than 29 hours per week for more than 2 years.

Amber is on a DSP.

She gets a job in an office working 34 hours a week.

Her DSP money is stopped because she works more than 29 hours per week.

Amber still earns more money than her DSP.

After 2 years Amber’s DSP is cancelled.

If Amber’s hours go down, she will have to reapply for the DSP.

How do you get into open employment?

There are lots of supports available to help people with intellectual disability get work. This website can help you navigate supports to get into open employment. The different supports include:

Everyone’s way into employment is different. People also need different information and supports at different stages of their life.

We have organised the information on this website into different life stages. Start your employment pathway here.

We’ve based the information on this website on current evidence in Australia. You can read this evidence here.

Every person, whatever their degree of intellectual disability, can work in open employment, but you and your family need the information and resources to make it happen.

DSP and employment support

The Disability Support Pension (DSP) can support people with intellectual disability to work.

Getting the DSP

The DSP is a government payment for people with disability who can’t work or who need support to work.

The Australian Government knows that most people with intellectual disability need support to work. This is why people with intellectual disability get the DSP.

When someone applies for the DSP, Centrelink usually asks them to do a test called a Job Capacity Assessment (JCA). This helps Centrelink work out:

A Job Capacity Assessment has no impact on a person’s NDIS Plan. They can still get employment support in their NDIS plan whether or not they receive employment support through Centrelink.

Work capacity

When Centrelink decides if someone can get the DSP, it looks at whether they need support to work.

Centrelink decides how many hours a week it thinks someone can work. This is also called their future work capacity.

If Centrelink decides someone can work less than 15 hours a week, they will be able to get the DSP.

If Centrelink decides someone can work more than 15 hours a week in a regular job without support, they won’t be able to get the DSP.

Working with support

The Australian Government used to assume that people with intellectual disability could not work at all. Or that if they could, it would only be in an Australian Disability Enterprise (ADE).

Even now, an ADE is the only employment program the Australian Government offers to people with intellectual disability who are assessed as being able to work up to seven hours a week without support.

If this applies to your young person and they want to get a regular job, they can still ask Centrelink for support from a Disability Employment Services (DES) provider. They can apply, but Centrelink may not accept them.

If Centrelink says your young person’s future work capacity is between eight and 14 hours a week, then they will automatically be offered support from a DES provider.

If your young person is manifestly eligible for the DSP, they can still ask for support to work. They won’t be penalised though if they say that they can’t work at all.

The two-year rule of DES

Centrelink or a DES provider might think that it will take someone longer than two years to have enough skills to have a future work capacity of eight or more hours a week.

If this happens, they won’t be able to get support from a DES provider. This is because the rules of DES say that people need to be ready to work within two years.

While this might be disappointing, it doesn’t mean that your young person won’t be able to get support from a DES provider in the future. They can also use their NDIS plan to develop more work skills and experience.

The Disability Support Pension (DSP) is a payment the Australian Government makes to people with a permanent physical, intellectual or psychiatric condition.
Read more A Job Capacity Assessment (JCA) is a test Centrelink uses when people apply for the Disability Support Pension (DSP).
Read more Work capacity is Centrelink’s assessment of how many hours of work you can do a week without support. Future work capacity is Centrelink’s assessment of how many hours you could work if you got Disability Employment Service (DES) support for up to two years.
Read more An Australian Disability Enterprises (ADE) is a type of employment support for people with disability who need significant support to work.
Read more Disability Employment Services (DES) is the Australian Government’s employment service that can help people with disability find work and keep a job in open employment.
Read more The manifest medical rules for the Disability Support Pension (DSP) are rules about what conditions make you automatically eligible for the DSP.
Read more

The impact of income on DSP

What some people think

Many people with intellectual disability who receive the Disability Support Pension (DSP) think they will lose money if they work and earn an income. Sometimes people are even told it’s good to be paid very low wages so that they don’t affect their DSP.

You are always better off if you earn an income

The Australian Government wants people with intellectual disability to be able to work. The DSP rules let people work up to 29 hours a week without losing their payment. In 2020, a single person aged 21 or over could earn $1,033.30 a week before they would stop receiving their DSP.

You can learn more about the DSP rules on the Services Australia website.

How does earning an income impact the DSP?

For every dollar a person earns over a certain amount (in 2022, this was $180 a week), they lose 50 cents of their DSP.

This means the person is 50 cents better off for every dollar that they earn. Here are some examples:

So, working actually means that people will have a higher income.

The two-year rule

If a person works 30 hours or more a week, or earns more than the cut-off limit, then their DSP is suspended. However, the payment is held open for up to two years in case the person needs to access it again. This means people are registered and approved for the DSP if they need it and won’t need to reapply for it within those two years. They will just need to tell Centrelink about their change in circumstances for the payments to start again.

If a person loses their DSP because they’re working more than 30 hours a week, they will still be able to use their Concession Card for one year after their DSP payments stop.

You can read more about the DSP income test and cut-off limit on the Services Australia website.

Accessing the Disability Support Pension (DSP)

The Disability Support Pension

The Disability Support Pension (DSP) is a pension paid to people who have a permanent condition or disability that stops them from working for at least two years.

Most people who get the DSP don’t need to look for work to get the payment. Unlike income support payments like the JobSeeker Payment.

Who can get the DSP?

To be eligible for the DSP you need to meet two sets of rules:

The DSP medical rules are about the condition that is stopping you from working. Most people with intellectual disability meet the medical rule called DSP manifest medical rules. These rules say that all people with intellectual disability who have an IQ of less than 70 are eligible for the DSP.

Everyone who gets the DSP must also meet the DSP non-medical rules.

DSP non-medical rules look at things like your age, residency and income.

How do you apply for the DSP?

To get the DSP, you need to:

You can find more information about how to claim the DSP on the Services Australia website.

You can also find information about the income test and cut-off point on the Services Australia website.

Australia’s social security system

Australia has a social security system where the government pays money to eligible people who are not able to work for an income and some who need support. Some common government payments include:

The Disability Support Pension (DSP) is a payment the Australian Government makes to people with a permanent physical, intellectual or psychiatric condition.
Read more Disability Support Pension (DSP) medical rules are one set of rules Centrelink uses to assess if you’re eligible for the DSP.
Read more DSP non-medical rules are the second set of rules Centrelink uses to check if you’re eligible for the Disability Support Pension (DSP). Everyone must meet these rules to be eligible for the DSP.
Read more The manifest medical rules for the Disability Support Pension (DSP) are rules about what conditions make you automatically eligible for the DSP.
Read more Programs of Support include different types of Australian Government- funded employment support services.
Read more myGov is a website people can use to access and keep track of their government services online.
Read more

DSP

The Disability Support Pension (DSP) is an income support payment from the Australian Government to people with disability. To get the DSP, you must have a permanent physical, intellectual or psychiatric condition.

The DSP is an important income support for many people, including people who work in open employment. In this section we explain:

The Disability Support Pension (DSP) is a payment the Australian Government makes to people with a permanent physical, intellectual or psychiatric condition.
Read more

Why work matters

Having a job is important for everyone’s quality of life, including people with intellectual disability.

When we have a job we:

There is also status attached to being employed.

A recent Australian study asked people with intellectual disability in open employment and segregated employment (like Australian Disability Enterprises (ADEs)) what they liked and disliked about having a job. The results showed that relationships and being paid were both in the top three best things about having a job.

The most important part of being paid that people talked about was what they spent their pay on and the difference it made to their lives. They said they spent their income on daily living expenses such as food, rent or board, health insurance and transport. It meant they could shop for things they like, buy birthday presents and pay their own way when out with family and friends. It was the difference between being reliant on others or having more independence. It also allows people to save up for big items including holidays, providing something to aim for and look forward to.

You can read this research here.

As well as financial independence, work also gives us a purpose, lets us meet new people, make new friends, and earn money to do the things we enjoy. It also gives us the opportunity to challenge ourselves to try something new.  

Unfortunately, many people with intellectual disability don’t get to experience the benefits of working. Many employers and families have low expectations about people with intellectual disability being able to work. However, research shows that, with the right support, people with intellectual disability can work and receive many benefits from it.  

Work and the DSP

Most people with intellectual disability also get the Disability Support Pension (DSP). Many don’t have to look for work to get this payment. It may seem easier to just to get the DSP and not worry about having a job.

However, while the DSP is an important source of income, it only really covers daily living expenses. It also restricts people’s lives. It restricts:

Most people with intellectual disability who are working are still eligible for the DSP. Wages can affect how much DSP you get, but you’re still better off if you work, even if you report your income.

You can also still get the Health Care Card and other benefits like rent allowance and transport support. On top of this you also get all the benefits of earning a wage.

You can read more about how work can affect someone’s DSP.

Open employment is when people with and without disability work together in regular jobs.
Read more An Australian Disability Enterprises (ADE) is a type of employment support for people with disability who need significant support to work.
Read more

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