3.6.1.20 Qualification for DSP during Employment - 30 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 prior to 11 May 2005 and transitional (1.1.T.147) DSP recipients.

 

Qualification for DSP during employment for recipients who become eligible to receive DSP after 30 June 2006, and those whose start date on DSP is between 11 May 2005 and 30 June 2006 and reviewed after 30 June 2006 under the 15 hour rule see 3.6.1.22.

 

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 for at least 30 hours per week where wages are at or above the relevant minimum wage (1.1.R.133), or be reskilled 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 for at least 30 hours per week where wages are at or above the relevant minimum wage, or is able to undertake or be reskilled for such work within 2 years, is no longer qualified for DSP.

 

Employment may also include participation in programs specifically designed for people with disabilities such as SWS (1.1.S.430). The recipient demonstrates a CITW while participating in SWS. The pension income test is applied to earnings for employment subject to working credit. With exemptions (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, 3.6.1.100 Continuation, Variation or Termination of DSP - 30 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 (DEN)

Recipients demonstrate a CITW for DSP even though the person may be working for 30 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 support requirements.

 

DSP should be suspended if the person is working for 30 hours or more per week independently in open employment (where wages are at or above the relevant minimum wage).

 

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 program 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 ceased.

 

If the recipient requires intensive support from the 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.

 

Policy reference: SS Guide 3.6.1.100 Continuation, Variation or Termination of DSP - 30 Hour Rule, 3.6.1.50 Payability of DSP

 

Supported 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.

 

Supported 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 and have a CITW in the open labour market where wages are at or above the relevant minimum wage. There is no time limit on the duration of their involvement in the programme, or qualification for DSP in these circumstances. A recipients 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 in full-time work where wages are at or above the relevant minimum wage, and therefore demonstrate a CITW. This is because wages that are at or above the relevant minimum wage contemplates work in the open labour market.

 

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) Before its amendment on 1 July 2006 - 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 business services recipients.

 

Policy reference: SS Guide 3.6.1.90 Notification & Recipient Obligations for DSP

 

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 30 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 program, 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 an EEP should be considered.

 

Act reference: SSAct section 94(5)-'work' Before its amendment on 1 July 2006

Policy reference: SS Guide 3.8.5 EEP - Qualification & Payability

 

Pensioner concession card

Whenever a DSP recipient commences full-time work of at least 30 hours a week, or if DSP ceases to be payable due to an increase in the person's income from employment, PCC entitlement continues for 12 months.

 

Act reference: SSAct section 1061ZD Extended qualification rule - former recipient of disability support pension, section 146T(1) 12 month extension of fringe benefits - person ceasing to be on DSP because of employment

Policy reference: SS Guide 3.9.2.30 PCC due to Employment

 

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 30 hours per week in open employment where wages are at or above the relevant minimum wage, and…	Then…
the recipient is unable to work for 30 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 for at least 30 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.

Example: A recipient who is working 20 hours per week due to the availability of work, or their desire to remain qualified for DSP, would have their work capacity reassessed.

 

The recipient's income from employment will be assessed under the pensions income test.

 

Act reference: SSAct section 94(2) Before its amendment on 1 July 2006 - Meaning of continuing inability, section 94(5)-'work' Before its amendment on 1 July 2006

Policy reference: SS Guide 3.6.1.100 Continuation, Variation or Termination of DSP - 30 Hour Rule, 3.6.2.110 DSP Assessment of Continuing Inability to Work - 30 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