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This topic applies to people whose start date on DSP is prior to 11 May 2005 (30 hour rule) and transitional (1.1.T.147) DSP recipients.
Continuation, variation or termination of 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 they were reviewed after 30 June 2006 under the 15 hour rule, see 3.6.1.102.
Policy reference: SS Guide 3.6.1.10 Qualification for DSP - 30 Hour Rule, 3.6.1.12 Qualification for DSP - 15 Hour Rule
The following table lists the circumstances in which payment of DSP may change.
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Payment of DSP… |
If the recipient… |
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can be cancelled, or suspended |
fails to :
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must be cancelled, |
dies. |
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must be suspended, |
commences work of 30 or more hours per week where wages are at or above the relevant minimum wage, or has income or increased income from earnings reducing DSP to nil rate and notifies within 14 days. |
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must be cancelled with subsequent deemed suspension of DSP instead of cancellation, |
commences work of 30 or more hours per week where wages are at or above the relevant minimum wage, or has income or increased income from earnings reducing DSP to nil rate and notifies outside 14 days. |
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must be cancelled, |
is a stimulus reporter and fails to report their employment income within 14 days of the entitlement period end date Note: The person's payment may be restored if special circumstances exist and they seek a review of the decision to cancel the payment within 13 weeks of the date of the cancellation advice. For guidance on restoration reasons see 3.6.1.90. |
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may be suspended or cancelled, |
or their partner fails to take action to obtain a CFP. |
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must be suspended. DSP is suspended for up to 2 years and then cancelled, |
is:
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Act reference: SSAct section 23(5) For the purposes of this Act, a person is in gaol if..., section 23(8) Pyschiatric confinement
SS(Admin)Act section 96 Disability support pension - suspension instead of cancellation under section 93, section 109 Date of effect of favourable determination resulting from review, section 126 Review of decisions by Secretary, section 129 Application for review
Policy reference: SS Guide Part 7 Portability & CFP, 3.1.4 Imprisonment, Psychiatric Confinement & Prison Release
DSP can be cancelled if a recipient fails to attend an assessment of work capacity, or make alternate arrangements. Cancellation takes place from the next available payday.
Act reference: SS(Admin)Act section 64 Requirement to undergo medical examination etc
The following table explains the treatment of DSP when a recipient returns to work of 30 hours or more a week where wages are at or above the relevant minimum wage or the income or increased income earned reduces DSP to nil rate:
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If the recipient commences work of 30 hours or more a week where wages are at or above the relevant minimum wage or the income or increased income earned reduces DSP to nil rate on a long term basis and ... |
Then DSP would be… |
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notifies Centrelink within 14 days, |
If the DSP recipient has a working credit balance they are allowed to run down their working credit balance to nil before being suspended for up to 2 years. However, if the DSP recipient has no working credit balance their payment is suspended immediately for up to 2 years.
If the DSP recipient's partner receives WP or CP in respect of a DSP partner, and has a working credit balance they are allowed to run down their working credit balance to nil. WP or CP is then suspended for up to 2 years. However, if the WP or CP recipient has no working credit balance the payment of WP or CP is suspended immediately for up to 2 years.
See 'Partner payments' in this topic for more information. |
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notifies Centrelink of the commencement of that work and notification is after 14 days, |
If the DSP recipient has a working credit balance they are allowed to run down their working credit balance to nil before being cancelled. However, if the DSP recipient has no working credit balance their payment is cancelled immediately back to the date that work commenced.
If the DSP recipient's partner receives WP or CP in respect of a DSP partner, and has a working credit balance they are allowed to run down their working credit balance to nil and then be cancelled. However, if the WP or CP recipient has no working credit balance the payment of that pension is cancelled immediately.
See 'Partner payments' in this topic for more information. |
Policy reference: SS Guide 3.6.1.20 Qualification for DSP during Employment - 30 Hour Rule, 3.6.1.30 Qualification for DSP during Self-employment - 30 Hour Rule
The return to work suspension provisions apply to recipients who commence work or increase their earnings from work on a long term basis, rather than to people who are ordinarily unable to maintain such work. A person who can only increase their work efforts for a short term are not intended to be covered under this topic.
Example: Jonah may be able to work 30 hours a week, with effort in the short term - such as working as a Santa over December. However, the extra effort exerted by Jonah for this short period is beyond what he can manage to maintain.
Prior to 1 July 2006, DSP payment could be suspended rather than cancelled for up to 2 years if the recipient notified Centrelink within the required notification period that they started full-time work on a long term basis. (SS(Admin)Act section 93). From 1 July 2006 a person can access the suspension provision if they do not comply with the notification period (SS(Admin)Act section 97A and section 97B).
Prior to 1 July 2006 DSP could only be restored within the 2 years if the person ceased work or reduced their hours because of their permanent disability. From 1 July 2006 there is no longer a requirement that the cessation of work or reduction in hours be due to the disability in order to restore DSP.
The suspension provision is not available to a person if the person is notified that he or she is no longer qualified for DSP before the person informs Centrelink about obtaining work (e.g. Centrelink finds out via data matching and notifies the person that DSP is cancelled).
Act reference: SS(Admin)Act section 93 Automatic cancellation-recipient complying with subsection 68(2) notice, section 97A Disability support pension-suspension instead of cancellation under section 94 (person obtains work), section 97B Disability support pension-suspension instead of cancellation under section 94 (person's income)
DSP payment MUST be suspended immediately, if the recipient notifies Centrelink that they have started full-time work, on a long term basis, within the required notification period and they do not have a working credit balance. In this event, DSP can remain suspended for up to 2 years. If the recipient has a partner receiving either WP or CP, the payment of that benefit is also suspended for the same period where applicable.
When a recipient notifies Centrelink that they have started full-time work on a long term basis, but they notify outside the notification period, DSP is cancelled under SS(Admin)Act section 94.
Under SS(Admin)Act section 97A and 97B, the Secretary has the discretion to determine that payment was suspended rather than cancelled when a person does not comply with the notification period.
If the DSP recipient informs Centrelink outside the notification period that they have attained work and the person ceased to do the work within the 2 year period, the Secretary may determine that DSP is suspended rather than cancelled (as long as Centrelink did not find out first and notify the person of cancellation of DSP before the person notifies).
If the recipient has a partner receiving either WP or CP in respect of the DSP partner, the payment of that benefit is also suspended (or deemed suspended) rather than cancelled where applicable.
CP is only suspended (or deemed suspended) rather than cancelled where qualification for CP is lost due to the DSP partner's work. If however the CP partner provides the amount of care to remain eligible for CP during the DSP suspension (or deemed suspension), then CP may be retained rather than suspended (or deemed suspended).
Explanation: Qualification for CP is affected by the amount of care provided by the CP partner. The employment of the DSP recipient may impact on CP qualification and should be reviewed.
If the DSP recipient's partner receives CP in respect of a caree who is not the DSP recipient, the suspension (or deemed suspension) rules do not apply to the CP partner. CP may, however, be impacted by the earnings of the DSP partner.
During the suspension (or deemed suspension) period, a DSP recipient can receive another income support payment such as NSA, subject to meeting eligibility criteria.
If the DSP recipients has a partner receiving WP or CP and the payment of that benefit is also suspended (or deemed suspended), the WP or CP partner can receive another income support payment as long as they are eligible for that payment in their own right during the suspension (or deemed suspension) period.
A break in payment of WP to access an alternative payment does not prevent restoration of WP.
If the DSP recipient has a working credit balance and starts work at 30 hours or more a week where wages are at or above the relevant minimum wage on a long term basis, the recipient is treated as being qualified for the period it takes to run down their working credit balance to nil. As a result, the 2 year suspension (or deemed suspension) commences from the day their working credit balance reduces to nil rather than from when payability would otherwise be lost (i.e. work of 30 hours per week or more, or income over the threshold).
The intention of SS(Admin)Act section 96 is to allow recipients the advantage of having DSP suspended for up to 2 years rather than being cancelled, where recipients lose qualification because they obtain paid work of at least 30 hours per week where wages are at or above the relevant minimum wage, or earn sufficient income to make DSP not payable. Section 96 is intended to cover recipients who are likely to go off DSP on a long term basis because of employment. Section 96 is not intended to cover situations where recipients work 30 hours a week, or earn higher income, on a one-off basis or only occasionally, but cannot sustain this work over a longer period because of their disability. In this situation, DSP should be continued and the earnings assessed under the income test.
The intention of SS(Admin)Act section 97A and 97B is to extend the suspension provision to recipients who do not comply with the notification requirement.
Two years is the maximum amount of time that payment can be suspended (or for deemed suspension a maximum of 2 years and 14 days). After this time, the recipient's payment must be cancelled, or remain so for those who notified outside the 14 day notification period.
A recipient who notifies Centrelink of commencing work on the last day of the 14 day notification period is suspended for up to 2 years from this date.
If the recipient has working credits, they are allowed to run down before the 2 year period commences.
A recipient who does not notify within 14 days must not benefit from a longer suspension (or deemed suspension) time. Therefore the suspension period will not commence from the day the recipient notified they obtained employment. It will start on the day the recipient commenced work, or if the person has working credits, it will commence when the working credit balance is reduced to nil.
Act reference: SS(Admin)Act section 96 DSP-suspension instead of cancellation in some cases, section 97 DSP-suspension taken to have been under section 96
Policy reference: SS Guide 3.6.1.20 Qualification for DSP during Employment - 30 Hour Rule, 3.1.3 Notification & Recipient Obligations
A work bonus is used to reduce the assessment of employment income in an instalment period. An instalment period is a period of a maximum of 14 days.
Only 50% of the first $500 of employment income earned in an instalment period will be assessed under the income test.
Any employment income over $500 is then added to this reduced amount and it is this total of employment income for that instalment period will be assessed under the income test.
If a person's employment income for an instalment period is less than $500, only 50% of the person's total employment income for that instalment period will be assessed under the income test.
Work bonus applies only to DSP recipients who are:
Act reference: SSAct section 1073AA Work bonus, section 1064 Rate of age, disability support, wife pensions and carer payments (people who are not blind), section 1066 Rate of bereavement allowance and widow B pension, section 1072 General meaning of ordinary income
Policy reference: SS Guide 3.1.14 Work Bonus
For the first 12 months after returning to work, the recipient retains qualification for a PCC. This applies even if the recipients fails to notify Centrelink of the commencement of that work within 14 days.
If the recipient's partner was receiving WP, they also retain qualification for a PCC for 12 months.
If the recipient's partner was receiving CP, they retain qualification for a PCC for 12 weeks.
If a recipient has working credits and qualifies for a 12 month PCC extension, the 12 months starts from the day the recipient's working credit balance reduces to nil (not from the commencement of employment or increase in employment income).
Act reference: SSAct section 1061ZD Extended qualification rule: former recipient of disability support pension
Policy reference: SS Guide 3.1.11.30 Working Credit Depletion, 3.9.2.30 PCC due to Employment
If DSP ceased to be payable due to an increase in the person's income from employment or the number of hours worked and the person receives NSA or YA, as a person with a partial capacity to work, the PCC entitlement is attached to the NSA or YA, that is the person does not attract the extended PCC through DSP.
Act reference: SSAct section 1061ZD Extended qualification rule: former recipient of disability support pension, section 1061ZA(2) Qualification for, and issue of, pensioner concession card
Policy reference: SS Guide 3.1.11.30 Working Credit Depletion, 3.9.2.30 PCC due to Employment
For the first 12 months after returning to work, the recipient retains qualification for TAL. This applies even if the recipient fails to notify Centrelink of the commencement of that work within 14 days. However, from 20 September 2009 TAL is not payable for the extension period to any person who received a transitional rate (5.1.8.40) of DSP or a notional rate of pension supplement (1.2.10.10) that included the pension supplement minimum amount, immediately before the cessation of their DSP.
If the recipient's partner was receiving WP or CP, they also retain qualification for TAL for 6 months. However, from 20 September 2009, the 6 months extension of TAL is not payable to any WP or CP recipient if, immediately before the cessation of their payment, they were receiving either a transitional rate of pension or a notional rate of pension supplement that included the pension supplement minimum amount.
Act reference: SSAct section 1061R Telephone allowance not payable in some circumstances
Policy reference: SS Guide 3.8.7.10 Qualification for TAL
If there are not working credits, TAL entitlement continues for 12 months from the date a recipient ceases to be qualified for DSP due to work of 30 or more hours per week or increase in employment income.
If a recipient has working credits and qualifies for a 12 month TAL extension, the 12 months starts from the day the recipient's working credit balance reduces to nil (not from the commencement of employment or increase in employment income).
Act reference: SSAct section 1061Q Qualification for telephone allowance
Policy reference: SS Guide 3.8.7.10 Qualification for TAL
Payment of DSP can be restored if the recipient does one of the following within the suspension period:
DSP can only be restored where the delegate is satisfied that the person is qualified for DSP and that DSP is payable. DSP is restored under the qualification criteria that applied to the person at the time of suspension. For a person whose DSP start date was before 11 May 2005, the pre Welfare to Work criteria (including the 30 hours per week work capacity rule) are applicable. This is also the case for a person in the DSP transition group whose payment was not reviewed against the new Welfare to Work criteria prior to suspension (i.e. the person was being paid DSP under the pre Welfare to Work criteria at the time DSP was suspended). However, at the first review after return to payment, the DSP transition group recipient will be assessed against the Welfare to Work criteria (including the 15 hours per week work capacity rule).
Payment is restored subject to any earnings, without the need to lodge a new DSP claim. The recipient MUST however request restoration of DSP.
If the DSP recipient receives an alternative income support payment, such as NSA, during the suspension (or deemed suspension) period, the NSA must be cancelled in order to restore DSP.
If the recipient does not request restoration of DSP within the 2 year suspension period, the DSP MUST be cancelled or remain so to those who notified outside the 14 days notification period.
The Secretary's discretion to suspend payment (or later deem payment to have been suspended) should not be available if a person is found to have been receiving DSP fraudulently.
Act reference: SSAct section 1223(1AB) Debts arising from lack of qualification, overpayment etc.
Policy reference: SS Guide 3.6.1.20 Qualification for DSP during Employment - 30 Hour Rule, 5.1.5.10 DSP - Current Rates
The estate of a deceased DSP recipient is entitled to one further instalment after the death of the recipient. Payment should also be made up to the date of death, to the allowee entitled to receive it.
If the recipient was a member of a couple, the partner may qualify for some bereavement assistance.
Policy reference: SS Guide 3.1.5 Bereavement Payment Provisions
If the recipient is a member of a couple and their partner dies, the recipient may qualify for bereavement assistance, IF the partner was:
For further information on bereavement entitlements, see 3.1.5.10 to 3.1.5.80.
Act reference: SSAct section 23(1)-'social security pension', section 23(1)-'long-term social security recipient'
DSP recipients are subject to a range of reviews.
Policy reference: SS Guide 6.2.5 Disability & Carer Reviews
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Last reviewed: 21 September 2009
