3.6.1.22 Qualification for DSP during Employment - 15 Hour Rule

 

Note: This topic is under review due to the commencement of DES on 1 March 2010.

 

Topic applies to

This topic applies to people whose start date on DSP is after 30 June 2006 and those whose start date on DSP is between 11 May 2005 and 30 June 2006 and have been reviewed after 30 June 2006 under the 15 hour rule.

 

Qualification for DSP during employment for recipients who are eligible for DSP prior to 11 May 2005 and transitional (1.1.T.147) DSP recipients see 3.6.1.20.

 

Policy reference: SS Guide 3.6.1.10 Qualification for DSP - 30 Hour Rule, 3.6.1.12 Qualification for DSP - 15 Hour Rule

 

Overview

DSP recipients participating in open employment may remain qualified for DSP provided they still have a CITW (1.1.C.330) among other criteria (i.e. the recipient is still unable to work independently for at least 15 hours per week where wages are at or above the relevant minimum wage (1.1.R.133), or to be trained for such work, for more than 2 years because of their disability). Qualification for DSP also requires the impairment criteria are met. A DSP recipient who works independently of support for at least 15 hours or more per week in open employment where wages are at or above the relevant minimum wage, or is able to train or be trained for such work within 2 years, is no longer qualified for DSP. These recipients should be assessed for NSA or YA.

 

Employment may also include participation in programmes or access to services specifically designed for people with disabilities such as SWS, supported employment (1.1.S.430) or work based personal assistance. The recipient demonstrates a CITW while participating in these programmes or access to this assistance continues. The pension income test is applied to earnings for employment subject to working credit. With exceptions (e.g. for assessment for RA), the pension income test is generally not applied to DSP blind.

 

A person who is assessed as being permanently blind (1.1.P.210) is automatically qualified for DSP under section 95 of the Social Security Act 1991. People who qualify under section 95 of the SSAct do not have to demonstrate a CITW.

 

Policy reference: SS Guide 3.6.2 Assessment of DSP, 3.6.1.102 Continuation, Variation or Termination of DSP - 15 Hour Rule, 1.1.R.133 Relevant minimum wage (DSP, MOB, Partial Capacity to Work & CA), 3.2.1 NSA - Qualification & Payability, 3.2.3 YA - Qualification & Payability, 3.6.2.40 Assessment of Blindness for DSP

 

Disability Employment Network

Recipients demonstrate a CITW for DSP even though the person may be working for 15 hours or more per week where wages are at or above the relevant minimum wage while they remain in the DEN capped stream as a result of ongoing support requirements.

 

DSP should be suspended if the person is working for at least 15 hours (where the wages are at or above the relevant minimum wage) independently in open employment and eligibility for NSA or YA should be considered. Grant of NSA or YA does not revoke the DSP suspension.

 

Recipients who require work based personal assistance in employment are considered to have support requirements and they will continue to demonstrate a CITW for as long as this assistance is being purchased or provided. In some instances, this may be provided after a DEN programme has ceased.

 

Note 1: Ongoing support included assistance and support provided to a person by a DEN which is required for more than 6 months after they have been placed into employment to ensure that the worker is able to work independently in employment.

 

Note 2: For recipients whose earnings make DSP not payable, the suspension provisions apply from the time that DSP ceases.

 

If the recipient requires intensive support from DEN again:

• within the 2 year period, DSP can be restored without the usual assessment of work capacity,
• after the 2 year period, normal claim and assessment procedures apply,
• NSA or YA will be cancelled if applicable.

 

Explanation: If a recipient supplements their earnings income with NSA or YA during the DSP suspension period, NSA or YA must be cancelled in order to restore the suspended DSP.

 

Policy reference: SS Guide 3.6.1.102 Continuation, Variation or Termination of DSP - 15 Hour Rule

 

Support wage system

A recipient who participates in the SWS continues to meet the work criterion to qualify for DSP while they are involved in the SWS. While they participate in the system they do not have to demonstrate a CITW.

 

SWS is an Australian Government programme designed to address barriers to employment in the open workforce faced by people with a disability whose productivity and employment competitiveness are reduced because of their disability. Employees under SWS are paid a proportion of a full wage based on their productivity.

 

Support wages are employment income (1.1.E.102) and any available working credits will be used to offset this employment income under the income test.

 

Business service (also known as disability supported employment)

DSP recipients demonstrate a CITW for DSP while they remain in a disability supported employment programme. There is no time limit on the duration of their involvement in the programme, or qualification for DSP in these circumstances. A recipient may be regarded as being in disability supported employment (1.1.S.430) while they remain employed by the business service.

 

Recipients working with assistance from a disability supported employment service funded under the Disability Services Act 1986, are NOT considered to be working independently of a programme of support (1.1.I.95), and therefore demonstrate a CITW.

 

Business service wages are employment income (1.1.E.102) and any available working credits will be used to offset this employment income under the income test.

 

Act reference: SSAct section 94(1) Qualification for DSP... see (c)(ii), section 1073H Working out accruals and depletions of working credit for social security pensioners, section 1073I Working out the effect of a working credit depletion the yearly rate of ordinary income for a social security pensioner

Policy reference: SS Guide 3.1.11.30 Working Credit Depletion

 

Employer reporting for business services

With the recipient's consent, employer reporting allows the business service to report their employee's wage details directly to Centrelink on a regular basis. The amount reported by the employer is taken to be the income of the person in the fortnight (i.e. it is the amount received not earned for people in business services).

 

Community development employment project

A recipient's participation in a CDEP is approved by DEWR and is usually on a part-time basis. In considering whether a recipient continues to qualify for DSP it is necessary to determine how closely the activities performed by the recipient resemble open employment conditions, and therefore whether the recipient is capable of work in open employment for 15 hours or more each week.

 

Delegates need to:

• obtain information about the activities being undertaken, AND
• take account of any modification to the activities made in order to accommodate the recipient's disability, AND
• consider the recipient's level and type of participation in the programme, not just the number of hours involved each week.

 

Employment entry payment

Whenever a DSP recipient commences full or part-time employment, their qualification for EEP should be considered.

 

Act reference: SSAct section 94(5)-'work'

Policy reference: SS Guide 3.8.5 EEP - Qualification & Payability

 

Pensioner concession card

Whenever a DSP recipient commences work of at least 15 hours a week, or if DSP ceases to be payable to due to an increase in the person's income from employment, PCC entitlement continues for 12 months.

 

A recipient losing eligibility for DSP because of the number of hours work, may be eligible for NSA or YA.

 

Hierarchy of PCC entitlement

If DSP ceases to be payable due to an increase in the person's income from employment or the number of hours worked, PCC entitlement is continued for 12 months. However, if during that 12 month period, the person receives NSA or YA and they are a person with a partial capacity to work, they will receive their PCC entitlement due to their receipt of NSA or YA rather than DSP.

 

Act reference: SSAct section 1061ZD Extended qualification rule - former recipient of disability support pension

Policy reference: SS Guide 3.9.2.30 PCC due to Employment, 3.2.1 NSA - Qualification & Payability, 3.2.3 YA - Qualification & Payability

 

Part-time employment (1.1.P.90)

A DSP recipient undertaking part-time open employment where wages are at or above the relevant minimum wage remains qualified for DSP subject to meeting other criteria (impairment, residency) provided they still have a CITW. CITW qualification is explained in the following table:

If the recipient is working less than 15 hours per week in open employment where wages are at or above the relevant minimum wage and...	Then...
the recipient is unable to work independently of a programme of support for at least 15 hours per week in open employment where wages are at or above the relevant minimum wage solely because of their medical condition,	they meet the CITW test for DSP.
the recipient is capable of working independently of a programme of support for at least 15 hours per week where wages are at or above the relevant minimum wage, AND the reasons for not doing so are due to non-medical factors,	the recipient is not qualified for DSP.

The recipient's income from employment will be assessed under the pension income test. With exemptions (e.g. for assessment for RA), the pension income test is generally not applied to DSP blind.

 

Act reference: SSAct section 94(2) Meaning of continuing inability, section 94(5)-'work'

Policy reference: SS Guide 3.6.1.102 Continuation, Variation or Termination of DSP - 15 Hour Rule, 3.6.2.112 DSP Assessment of Continuing Inability to Work - 15 Hour Rule, 1.1.R.133 Relevant minimum wage (DSP, MOB, Partial Capacity to Work & CA)

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Last reviewed: 19 September 2008