3.6.1.50 Payability of DSP

Summary

Even though a person may be qualified, DSP is NOT payable to the person in the circumstances listed in the following table.

Act reference: SSAct section 16A(1)-'seasonal work preclusion period'

SS(Admin)Act section 63 Requirement to attend Department etc., Schedule 2 Rules for working out start day

Policy reference: SS Guide 5.1.5.10 DSP - Current Rates

Employment income nil rate period - an incentive to take up work

A DSP recipient whose rate of payment is reduced to nil because of ordinary income (1.1.O.30), made up entirely or partly of employment income (1.1.E.102), may qualify for an employment income nil rate period. During the employment income nil rate period a DSP recipient can:

• be paid certain supplementary benefits, and
• have their payment resumed if they report a fall in income sufficient for DSP to be payable again.

Explanation: This policy provides incentives for recipients to take up work, particularly casual or short term work.

Note:

• DSP recipients who are permanently blind may choose to be subject to the income and assets tests if they wish to qualify for RA. These recipients can accrue and deplete working credits for the purpose of calculating their rate of pension.
• The employment income nil rate period does not apply to people who no longer qualify for DSP, or whose DSP has been suspended because they have paid work of 30 hours per week or more on a long term basis.
• DSP recipients retain their PCC for 52 weeks from the start of the employment income nil rate period.

Act reference: SSAct section 23(4A) Despite subsection (4)…, section 23(4AA) For the purposes of subsection (4A)…

Policy reference: SS Guide 3.1.12 Employment Income Nil Rate Period, 3.6.1.100 Continuation, Variation or Termination of DSP, 3.9.2.30 PCC due to Employment

Community development employment project

CDEP wages will be treated as direct deduction income, reducing the pension rate dollar for dollar up to the allowance equivalent of the pensioner's notional basic rate but capped at the NSA single MBR for single pensioners and the NSA partnered MBR for partnered pensioners. For pensioners under 21 years of age, the threshold will depend on the relevant DSP youth rate.

Payment of DSP overseas

DSP can generally only be paid for up to 6 weeks outside Australia. However, there are some circumstances where DSP can be paid for more than 6 weeks. This includes situations where a DSP recipient is:

• severely disabled (1.1.S.110) and has a terminal illness,
• severely and permanently impaired with no future capacity to work,
• undertaking study overseas as part of their full time Australian course,
• covered by an international agreement that allows for indefinite portability or
• grandfathered under DSP savings provisions.

Policy reference: SS Guide 7.1.2.20 Portability Table, 7.2 Arrangements for Payment Outside Australia, 7.1.1.10 Overview of Portability Legislation, 10.1.1 Background information on Agreements

Receiving a pension or income support supplement from DVA

DSP is not payable to a claimant who is receiving a DVA:

• pension under Part II or IV of the VEA, OR
• income support supplement under Part IIIA of the VEA, or would be eligible for the supplement if they claimed.

Act reference: SSAct section 103(3) Multiple entitlement exclusion

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Last reviewed: 2 January 2013