3.6.1.12 Qualification for DSP - 15 hour rule

Topic applies to

Since 2006, the DSP qualification criteria have undergone a number of changes. This topic summarises these changes and explains which criteria apply to DSP claimants and recipients, dependent on their date of claim or start date on DSP.

Qualification for people whose start date on DSP was prior to 11 May 2005 is covered separately in 3.6.1.10.

Application of the DSP qualification criteria at review is covered in 6.2.5.03.

From 1 July 2012 DSP recipients may continue to receive DSP if they obtain paid work of at least 15 and less than 30 hours a week notwithstanding that to qualify for DSP at claim they must be assessed as having a work capacity of less than 15 hours a week.

Overview of changes to DSP qualifications from 2006 to 2023

The current Impairment Tables are contained in the Social Security (Tables for the Assessment of Work-related Impairment for Disability Support Pension) Determination 2023. The current Tables were implemented on 1 April 2023 and are used for the assessment of new DSP claims made and review requests commenced on or after that date.

The impairment criterion requiring a person to have a physical, intellectual or psychiatric impairment that attracts an impairment rating of at least 20 points under the Impairment Tables (1.1.I.10), has not changed in this period.

There have been, however, a number of changes to the CITW (1.1.C.330) criteria since 2006. These changes are summarised below.

Note: People assessed as permanently blind are not subject to the impairment and CITW requirements - see 3.6.2.40.

DSP recipients whose start date on DSP is between 11 May 2005 and 30 June 2006 (transitional recipients) were originally granted DSP under the 30 hour work capacity rule. However, at review, these recipients have their CITW assessed against the CITW criteria and definitions in force from 1 July 2006 that is, they must, among other things, be unable to work for 15 hours or more per week and be unable to be retrained for such work in the next 2 years. This is referred to as 15 hour work capacity rule.

Note: In practice it is unlikely that decision makers would now encounter any cases of transitional recipients that have not already been reviewed.

From 1 July 2006, all DSP claimants and recipients who made, or are taken to have been made, a claim for DSP on or after that date have been, and are being, assessed against the 15 hour work capacity rule.

From 3 September 2011, new DSP claimants:

• who do not have a severe impairment must demonstrate that they have actively participated in a POS (1.1.A.30), in addition to meeting the other CITW criteria, including the 15 hour rule, and
• who have a severe impairment (1.1.S.127) are not required to demonstrate that they have actively participated in a POS but are required to meet the other CITW criteria, including the 15 hour rule.

From 27 November 2014, to have a CITW, those DSP recipients who at review of their impairment and work capacity qualifications become reviewed 2008-2011 DSP starters (1.1.R.285) and are given an opportunity to participate, are also required to demonstrate that they have actively participated in a POS. This is in addition to the requirement of meeting the other CITW criteria, including the 15 hour work capacity rule.

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 for the person to have a CITW, are of equal importance.

Proper claim

A person must lodge a proper claim before DSP can be granted. A person cannot lodge a proper claim for DSP if they are under age 16 or over age pension age.

Residence qualification criteria

To satisfy the residence criteria when claiming 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 (that is, reside in Australia and are either a refugee or a former refugee), OR
• been born outside Australia and be a dependent 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
• 2 or more periods that in total exceed 10 years, AND at least one of those periods is of 5 years duration or more.

To remain qualified for DSP, a recipient must be an Australian resident (1.1.A.330) or be exempted from the requirement to be an Australian resident because they are entitled to indefinite portability.

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.

Working credit balance prevents loss of qualification

A DSP recipient who has a working credit balance and commences employment on a long term basis which means they no longer meet 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
• 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.

Failure to comply

If a DSP claimant or recipient fails to comply with a notice from Services Australia requesting them to do the following, the pension is not payable:

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

CFP (1.1.C.230)

If a person claims DSP and they or their partner may be entitled to a CFP, they are 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 may be rejected.