3.6.1.10 Qualification for DSP - 30 Hour Rule

Topic applies to

This topic applies to people who were eligible for DSP prior to 11 May 2005 (30 hour rule) and transitional (1.1.T.147) DSP recipients.

Other qualification rules apply to DSP for recipients 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 inability to work 15 hour rule. See 3.6.1.12.

Qualification (1.1.Q.10) criteria

To qualify for DSP, a person must meet the criteria listed in the following table. Where more detail about a criterion is required, the second column indicates where you will find this. 

Note: When assessing qualification for DSP, the requirement for the person to have an impairment rating of at least 20 points under the impairment tables and the requirement that the applicant has a CITW, are of EQUAL IMPORTANCE.

Explanation: Many people will have an impairment rating of at least 20 points, but will not be qualified for DSP because they do not have a CITW.

In limited circumstances, it is possible to grant DSP without further assessment where the available medical evidence indicates clear qualification and if all other qualification criteria are met. This is known as a manifest (1.1.M.30) grant.

Act reference: SSAct section 94(1) Qualification for disability support pension-continuing inability to work (before its amendment on 1 July 2006), section 94(2) Meaning of continuing inability (before its amendment on 1 July 2006), section 95(1) Qualification for disability support pension-permanent blindness (before its amendment on 1 July 2006), schedule 1B Tables for the assessment of work-related impairment for disability support pension

Policy reference: SS Guide 3.6.2.20 Manifest Grants & Rejections for DSP, 3.6.2.100 DSP Assessment of Impairment Ratings, 3.6.2.110 DSP Assessment of Continuing Inability to Work - 30 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)

DSP qualification for recipients who have reached age pension age

A person cannot lodge a claim for DSP unless the person is under age pension age on the date the claim is lodged. However, a DSP recipient who has reached age pension age may continue to qualify for DSP if it was granted prior to the recipient turning age pension age as there is no upper age limit for DSP.

Explanation: A DSP recipient who is about to reach age pension age can elect to remain on DSP if they would be disadvantaged on Age.

Example: They would lose entitlement to PES or would receive a lesser rate of pension because of proportional portability.

Explanation: A former DSP recipient who was automatically transferred to Age when they reached age pension age, can seek a review of the decisions to cancel DSP and to grant Age. If the recipient has sufficient reason (such as losing entitlement to PES or receiving a lesser rate because of proportional portability) for wanting to go back on to DSP, this can be allowed. If a favourable decision is made, the date of effect is determined by the following:

• If the recipient was notified in writing of the decision to cancel DSP and requests a review within 13 weeks, the date of effect is the date of the decision to cancel DSP.
• If the recipient was notified in writing of the decision to cancel DSP and requests a review outside 13 weeks, the date of effect is the date the recipient asked for the review.
• If the recipient was not notified in writing of the decision to cancel DSP, the date of effect is the date of the decision to cancel DSP, regardless of when the recipient asked for a review.

Note: DSP becomes taxable once the recipient reaches age pension age.

Act reference: SS(Admin)Act section 28 Claims for disability support pension

Policy reference: SS Guide 5.3.4.10 Taxation of Payments & PAYG Payment Summary - Individual Non-Business

Proper claim

A person must lodge a proper claim before DSP can be granted.

Act reference: SS(Admin)Act Part 3 Division 1 Claim for social security payment or concession card

Policy reference: SS Guide 8.1.1 Claim Lodgement Provisions

Residence qualification criteria

To satisfy the residence criteria for DSP, the person must have:

• been an Australian resident at the time when the CITW or permanent blindness occurred (a person's CITW arises at the time of the incapacitating accident regardless of the age of the person when this occurred. For people with severe congenital abnormalities CITW occurred at birth), OR
• 10 years of qualifying residence, OR
• a QRE (i.e. reside in Australia and are either a refugee or a former refugee), OR
• been born outside Australia, and be a dependant child of an Australian resident at the time when the CITW or permanent blindness occurred, and have become an Australian resident while still a dependent child of an Australian resident.

Ten years qualifying residence is satisfied if the person has:

• been an Australian resident for at least 10 years at any point in the past, OR
• been an Australian resident for 2 or more periods that in total exceed 10 years, AND at least one of those periods is of 5 years duration or more.

It may also be possible for the person to qualify for DSP under the terms of an international agreement (1.1.A.120). The international agreements are found in the SS(IntAgree)Act.

Act reference: SSAct section 7 Australian residence definitions, section 7(6) A person has a qualifying residence exemption, section 7(6B) A person is a refugee, section 94(1) Qualification for disability support pension-continuing inability to work (before its amendment on 1 July 2006), section 95(1) Qualification for disability support pension-permanent blindness (before its amendment on 1 July 2006)

Policy reference: SS Guide Part 10 Australian Social Security Agreements

Working credit balance prevents loss of qualification

A DSP recipient who has a working credit balance and commences employment on a long term basis that caused them to fail the CITW criterion, is treated as still being qualified for DSP for the period it takes to run down their working credit balance. This allows the recipient to benefit from their working credit balance - providing encouragement to recipients to take up a job.

This treatment will continue until the earliest of:

• their working credit balance is reduced to nil, or
• qualification (other than related to the employment) is lost, or
• payability (other than related to employment income) is lost.

Note:

• DSP-permanent blindness recipients can accrue and deplete working credits if their income details are obtained for the purpose of paying RA.
• Australian Disability Enterprise wages are employment income and any available working credits will be used to offset this employment income under the income test.

See 3.6.1.100 for information on the treatment of recipients who commence employment on a long term basis - which provides further encouragement to recipients to take up work.

Act reference: SSAct section 1073J Working credit balance prevents loss of qualification in certain cases

Policy reference: SS Guide 3.1.11.30 Working Credit Depletion

Failure to comply

A recipient will be disqualified from DSP, if they are awaiting determination of their claim and they fail to comply with a notice from Centrelink requesting them to:

• contact a specified officer of the department, OR
• attend an interview at a specified location, OR
• complete a questionnaire, OR
• attend a medical, psychiatric or psychological examination, OR
• provide a report from a previous examination by a medical practitioner.

Act reference: SS(Admin)Act section 64 Requirement to undergo medical examination etc

Policy reference: SS Guide 3.6.1.90 Notification & Recipient Obligations for DSP, 3.6.2 Assessment for DSP, 6.2.5 Disability & Carer Reviews

Comparable foreign payment (1.1.C.220)

If a person claims DSP while they or their partners would be entitled to a CFP, they may be required to take reasonable action to obtain the foreign payment. If they fail to take reasonable action to obtain the CFP within the specified period, their claim can be rejected.

Act reference: SS(Admin)Act section 66 Notice to obtain foreign payment, section 40 Rejection of claim for failure to obtain foreign payment

Policy reference: SS Guide Part 7 Portability & CFP

Qualification for DSP under section 94A

Qualification for DSP under section 94A of the SSAct for persons who after 2 years of receiving a social security benefit or entitlement and suitable training where their work capacity has not increased to at least 15 hours per week is covered in 3.6.1.45.

Act reference: SSAct section 94A Qualification for disability support pensions-person transferring to that pension

Policy reference: SS Guide 3.6.1.45 Qualification for DSP - After 2 Years on Income Support with Suitable Training

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Last reviewed: 1 July 2009