Prime Time Financial Counsellors Pty Ltd: Disability Support Pension

Disability Support Pension

Reproduced from Centrelink's "A Guide to Australian Government Payments 1 January - 19 March 2012"

Basic Conditions of Eligibility
Residence Requirements
Basic Rates
Income Test
Assets Test

Basic Conditions of Eligibility

Aged 16 or over but under Age Pension age at date of claim lodgement, and
Must have a physical, intellectual, or psychiatric impairment assessed at 20 points or more under impairment tables*, and
Inability to work for 15 hours or more per week for the next two years as a result of impairment, and
Inability, as a result of impairment, to undertake a training activity which would equip the person to work within the next two years, or
Be permanently blind.
Contact Centrelink for more information.

*If at least 20 points are not allocated under a single impairment table, must have also actively participated in a program of support.

Residence Requirements

Must be an Australian resident and in Australia on the day the claim is lodged, unless claiming under an International Social Security Agreement.
Must have been an Australian resident for a total of at least 10 years, at least five of those years in one continuous period, or
Residence in certain countries with which Australia has an International Social Security Agreement may count towards Australian residence, or
Have a qualifying residence exemption (arrived as refugee or under special humanitarian programme), or
Immediately eligible if inability to work occurred while an Australian resident, or
Was a dependent child of an Australian resident at the time the continuing incapacity to work commenced.
May be paid for up to 13 weeks of an absence outside Australia or longer if the person has to travel to study or train as part of their full-time Australian course or Australian Apprenticeship. Can be paid indefinitely in some cases if terminally ill and leaving Australia permanently. Different rules apply if the person is covered by an International Social Security Agreement.

Basic Rates

Disability Support Pension if aged 21 or over without children:

Status Pension Rate Per Fortnight

Single $689.00*

* This amount excludes the Pension Supplement which pensioners may receive as an additional payment to the base pension (see Concession Cards, Supplements and Allowances).

Pensioners receiving payments since 19 September 2009 may be paid under transitional arrangements. Special savings provisions may apply to Disability Support Pension for people under 21 without children, rather than transitional arrangements. Contact Centrelink for more information.
DSP recipients who are undertaking Work for the Dole, Green Corps activities, the Language, Literacy and Numeracy Program or participating in the Community Development Employment Project (CDEP), may be eligible for an additional supplement of $20.80 a fortnight.
Under age 21, no children:

Single, aged under 18	dependent	$334.40 pf
independent		$516.70 pf
Single, aged 18-20	dependent	$379.00 pf
independent		$516.70 pf
Member of a couple		$516.70 pf

Disability Support Pension for people under 21, no children (includes Youth Disability Supplement of $114.00 per fortnight):
Disability Support Pension is not subject to parents' income and assets.
Pharmaceutical Allowance, Utilities Allowance and Telephone Allowance may be paid to Disability Support Pension recipients aged under 21 without children.
Education Entry Payment of $208 may be payable.
Pensioner Education Supplement may be paid to Disability Support Pension recipients.

Rent Assistance

Family Situation Maximum payment per fortnight No payment if your fortnightly rent is less than Maximum payment if your fortnightly rent is more than

Single, no children $119.40 $106.20 $265.40

Single, no children, sharer $79.60 $106.20 $212.33

Couple, no children $112.60 $172.80 $322.93

One of a couple who are separated due to illness, no children* $119.40 $106.20 $265.40

One of a couple who are temporarily separated, no children $112.60 $106.20 $256.33

* Includes respite care and partner in prison.

Rent Assistance for families with children is usually paid with Family Tax Benefit. See Family Tax Benefit Part A for current rates.
Rent Assistance is not paid:
- to people paying rent to a government housing authority, although in some situations sub-tenants may qualify for Rent Assistance.
- for residents of Australian Government funded nursing homes and hostels.
- to single Disability Support Pensioners under 21, without dependants, living with parents.
- to other single people aged under 25, living with parents.
Special rules apply to single sharers, people who pay board and lodging or live in a retirement village.
Rent Certificates are required to verify rent where the person does not have a formal tenancy agreement or is not named as a tenant on a formal tenancy agreement.
Rent Assistance is paid as part of another payment. It may be reduced due to the income test rules applying to that primary payment.
Rent Assistance is subject to portability provisions where relevant.

Rent Assistance not payable to single persons aged under 21, without dependants, who live with their parents or guardian.
Rent assistance is not payable to some blind pensioners. Contact Centrelink for more information.

Income Test

(a) Income Test for Pensions†

Family Situation	Full Pension (pf)*	For Part Pension (pf)#
Single**	Up to $150.00	Less than $1,647.60
Couple (combined)	Up to $264.00	Less than $2,522.00
Illness separated (couple combined)	Up to $264.00	Less than $3,259.20

(b) Income Test for Disability Support Pension under 21, no children

Family Situation	For Full Pension (pf)*	For Part Pension (pf)
16-17 years	Up to $150.00	Less than $807.40
18-20 years	Up to $150.00	Less than $893.60
16-20 years independent	Up to $150.00	Less than $1,159.40

The notional maximum pension for transitional rate pensioners is $650.90 per fortnight for a single pensioner and $1,051.40 per fortnight for pensioner couples. This rate excludes rent assistance.

Family Situation	Full Pension (pf)^	For Part Pension (pf)#
Single	Up to $150.00	Less than $1,818.00
Couple (combined)	Up to $264.00	Less than $2,958.00
Illness separated (couple combined)	Up to $264.00	Less than $3,600.00

(d) Income Test for Disability Support Pension under 21 - no children - Saved Status

Family Situation	For Full Pension (pf)*	For Part Pension (pf)
16-17 years	Up to $150.00	Less than $971.75
18-20 years	Up to $150.00	Less than $1,079.50
16-20 years independent	Up to $150.00	Less than $1,411.75
Couple (combined)	Up to $264.00	Less than $2,772.50

Note: The rate of payment is calculated under both the income and assets tests. The test that results in the lower rate (or nil rate) will apply.

^	Allowable income is increased by up to $24.60 pf for each dependant child.
*	Income over these amounts reduces the rate of pension payable by 50 cents in the dollar (single), 25 cents in the dollar each (for couples). For transitional or saved cases income over these amounts reduces the rate of pension payable by 40 cents in the dollar (single), 20 cents in the dollar each (for couples).
†	This income test does not apply to recipients of Parenting Payment Single.
#	These figures may be higher if Rent Assistance is paid with your pension.

Pensioners receiving payments at 19 September 2009 may be paid under 'transitional arrangements' or saved status.

Some assets are deemed to earn income, while there are special rules for other types of income. Contact Centrelink for more information.

Employment income is subject to a Work Bonus for eligible pensioners over pension age.

Work Bonus

Basic conditions of eligibility:

The Work Bonus is a concession on the income test treatment of employment income for pensioners over age pension age, except Parenting Payment (Single).
The Work Bonus is used to reduce assessable employment income in an instalment period. An instalment period is a period of a maximum of 14 days.
Half of the first $500 of fortnightly employment income will be disregarded from the income test for pensioners over age pension age. This is in addition to the normal allowable income threshold.
All pensioners over age pension age, other than recipients of Parenting Payment (Single), are eligible for the Work Bonus. If they are eligible for a transitional rate, Centrelink will compare the transitional rate (which has no Work Bonus) to the new rate (which does include the Work Bonus). The transitional rate is paid where it pays a higher rate.
No registration process, however pensioners must keep Centrelink up to date with their employment income.

Compensation Payment

Compensation payments, such as weekly workers' compensation payments, are assessed differently. If the compensable injury occurred prior to receiving an income support payment each dollar of any regular compensation payment reduces the income support payment (pension or allowance) by a dollar. If the compensable injury occurred while receiving an income support payment any regular compensation payment is assessed under the normal income test. Compensation payments may include a component of taxable income and it is this component that is included as income for Family Tax Benefit purposes. Lump sum compensation payments may result in a non-payment period. Contact Centrelink for more information.

No income test on the basic rate for Disability Support Pensioners who are permanently blind; however, these pensioners may be affected by the special arrangements for compensation payments.

Assets Test

Assets Test Limits for Allowances and Full Pensions

Family Situation	For Home Owners	For Non-homeowners
Single	$186,750	$321,750
Couples (combined)	$265,000	$400,000
Illness separated (couple combined)	$265,000	$400,000
One partner eligible (combined assets)	$265,000	$400,000

Some assets are deemed to earn income, while certain assets are not included in the assets test; see Deeming - Financial Investments or contact Centrelink for more information.

Allowances, Austudy and Parenting Payment are not payable if assets exceed these amounts.

For pensions, assets over these amounts reduce pension by $1.50 per fortnight for every $1,000 above the amount (single and couple combined).

Assets Test Limits for Part Pensions

	For Part Pensions Assets must be less than:
Family Situation	For Homeowners	For Non-homeowners
Single**	Up to $686,000	Less than $821,000
Partnered (combined)	Up to $1,018,000	Less than $1,153,000
Illness separated (couple combined)	Up to $1,263,500	Less than $1,398,500
One partner eligible	Up to $1,018,000	Less than $1,153,000

Transitional

Family Situation	For Homeowners	For Non-homeowners
Single	Up to $631,750	Less than $766,750
Partnered (combined)	Up to $983,500	Less than $1,118,500
Illness separated (couple combined)	Up to $1,155,000	Less than $1,290,000
One partner eligible	Up to $983,500	Less than $1,118,500

Assets Test for Disability Support Pension - Aged under 21 (no children)

Family Situation	For Homeowners	For Non-homeowners
I) Single - dependent
16-17 years	Up to $406,000	Less than $541,000
18-20 years	Up to $434,750	Less than $569,750
II) Single - independent
16-20 years	Up to $523,250	Less than $658,250
III) Couple (combined)
16-20 years	Up to $934,000	Less than $1,069,000

Some assets are deemed to earn income, while certain assets are not included in the assets test; see Deeming - Financial Investments or contact Centrelink for more information.

Note: The rate of payment is calculated under both the income and assets tests. The test that results in the lower rate (or nil rate) will apply.

Limits will increase if Rent Assistance is paid with your pension.

Assets over these amounts reduce pension by $1.50 per fortnight for every $1,000 above the limit (single and couple combined).

Newstart Allowance, Widow Allowance, Partner Allowance, Sickness Allowance, Special Benefit, Parenting Payment, Youth Allowance and Austudy Payment and Mature Age Allowance are not payable if assets exceed these amounts.

For Disability Support Pension recipients, these limits apply if aged over 21 only. For those under 21 the same income/assets test applies, but with different limits. See your nearest Centrelink Customer Service centre for more information.

The asset limits above may only apply to people who are resident in Australia, or are temporarily absent for up to 13 weeks. Contact Centrelink for more information.

Extra Allowable amount for Retirement Village and Granny Flat Residents

If your Entry Contribution is equal to or less than the Extra Allowable Amount, you are assessed as a non-homeowner. Your Entry Contribution will count as an asset. You may qualify for Rent Assistance. The Extra Allowable Amount is the difference between the non-homeowner and homeowner test limits, currently $135,000.

Hardship Provisions

If you have assets but little or no income you are expected to rearrange your affairs to provide for yourself. In some cases that is not possible. If you are in "severe financial hardship" you may be able to get a social security payment. Different tests apply to such cases.

No assets test on basic rate for Disability Support Pensioners who are permanently blind; however, these pensioners may be affected by the special arrangements (see above) compensation payments.
Hardship provisions may apply.