Disability Support Pension - Peter's Story
Peter is 37 years old and single. He has been on Disability Support Pension (DSP) since 2004. After receiving help from Centrelink and a Disability Employment Network provider he recently started some part-time work. When talking to Centrelink staff they used the
Centrelink Rate Estimator to show Peter that he was financially better off working part-time and continuing to receive part rate DSP. He was also able to keep his Rent Assistance and Pensioner Concession Card.
When he started work Peter had Working Credits that delayed the reduction of his payments for the first three fortnights he worked. This gave Peter extra money to help with the costs of starting work and travel expenses. The first three bars in the graph below show how working made a real difference for Peter, especially when he was able to use his Working Credits.
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As Peter’s start date on DSP was before 11 May 2006, if he cannot work 30 hours* or more a week at or above the relevant minimum wage he remains eligible for DSP. Even if he loses eligibility because of employment there is a safety net. If Peter starts work or increases his part-time work and due to that employment is no longer eligible, DSP may be suspended for a period of up to two years. Peter would also keep his Pensioner Concession Card and Telephone Allowance for the first 12 months. If Peter has to stop that employment or reduce his hours for any reason within the two-year suspension, DSP can be restored – this means that Peter can get back on DSP without needing to lodge a new application or undertake another assessment.
The graph below shows the financial benefits if Peter increases his income. He can talk to Centrelink about being able to go to the Job Network or Disability Employment Network for help to look for additional or new work. These services can tailor a job search program and support to cater to Peter’s own needs.
Peter has been successful in joining the workforce. He is earning more money and is feeling independent, in control and that he is contributing to his community.
*The eligibility rules for DSP have changed for some people.
- People whose start date on DSP was before 11 May 2005 are not affected by these changes and remain subject to a 30 hour per week work capacity rule.
- People whose start date on DSP was after 1 July 2006 are subject to a 15 hour per week work capacity rule.
- People whose start date on DSP was between 11 May 2005 and 30 June 2006 remain subject to the 30 hour per week work capacity rule, but if they are reviewed after 1 July 2006 they will be reassessed under the 15 hour per week work capacity rule.
- People who are no longer eligible for DSP will have their eligibility tested for another, more appropriate, income support payment, generally Newstart Allowance.
Customers seeking information about the eligibility rules for DSP should visit the Disability Support Pension and related benefits information website.
Please Note: The tax rates in these scenarios are estimates only. You may be entitled to tax offsets that can be claimed as an end of year tax refund.
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