The Federal Government has introduced legislation before parliament that will require new participation requirements for Disapility Support Pension recipients who have some capacity to work.

 

Minister for Disability Reform, Jenny Macklin, announced the legislation that will also provide more generous rules to allow DSP recipients to work up to 30 hours a week and continue to receive a part-pension, subject to income and assets testing.

 

Provided its passage, the legislation will take effect from 1 July this year and will see:

 

  • For the first time DSP recipients aged under 35 years with some capacity to work will be required to attend regular participation interviews with Centrelink to develop participation plans, to help build their capacity and overcome barriers to work; and
  • All DSP recipients will be able to work up to 30 hours a week without their payment being suspended or cancelled, subject to the income test. Currently DSP recipients granted after 11 May 2005 can only work up to 15 hours a week before their payment is suspended or cancelled. These people find it difficult to find work that is limited to only 15 hours a week and many want to work more hours. This important change will give people with disability the security they need to test their ability to work more hours, without worrying about losing qualification for the disability pension. This will encourage about an estimated 4,000 DSP recipients to take up work, and an estimated 3,900 DSP recipients who are already employed to work extra hours.

 

“The Bill also helps make sure the family payment system is sustainable into the future, by resetting the baby bonus to $5000 from 1 September this year.  The baby bonus has increased by 67 per cent since it was introduced in 2004, and this measure will provide a saving to the Budget of $358 million over four years,” Ms Macklin said in a statement.

 

This Bill will also deliver on commitments under the Australian Government’s National Carers Strategy, announced in August last year.