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Post by keepyourchinup on May 13, 2014 22:05:24 GMT 7
Details & discussion of DSP in the 2014-2015 Australian Federal Budget
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Post by keepyourchinup on May 13, 2014 22:05:59 GMT 7
Extracts from the 2014-2015 Australian Federal Budget related to Disability Support Pension (DSP)
01. The Government will achieve fiscal consolidation through medium-term structural
savings to the budget. These savings decisions will help to improve the sustainability
and efficiency of Government spending. The largest savings beyond the forward
estimates are through:
changes to the method of indexation of age and disability pensions;
(Budget Strategy and Outlook, Budget Paper No. 1, 2014-15 Pages 3-12 to 3-13)
02. Parameter and other variations
This Budget also incorporates some major changes in expected payments in 2014-15 as
a result of parameter and other variations since the 2013-14 MYEFO. Major increases
include:
Disability Support Pension payments, which are expected to be $325 million higher
in 2014-15 ($962 million over the four years to 2016-17), largely reflecting higher
than expected average payment rates and marginally higher than expected
customer numbers;
(Budget Strategy and Outlook, Budget Paper No. 1, 2014-15 Page 3-25)
03. Major expense trends between 2013-14 and 2014-15, and from 2014-15 over the forward
years include movements in the following functions:
social security and welfare — the increase in expenses from 2014-15 to 2017-18 are
largely due to an ageing population with more people accessing age, disability and
carer payments and residential and home care together with implementation of the
National Disability Insurance Scheme to support people with a significant and
permanent disability;
(Budget Strategy and Outlook, Budget Paper No. 1, 2014-15 Pages 6-7 to 6-8)
04. Box 2: Trends in future spending
Social security and welfare expenses are projected to grow strongly over the forward
estimates. Key factors driving this include age, disability and carer payments and an
increase in expenses associated with home care, home support, and residential and
flexible aged care programmes, with demographic factors resulting in an increase in
the number of people receiving these payments. Another driver of growth is the
implementation of the National Disability Insurance Scheme.
(With an almost 12 Billion Dollar increase over the Forward Estimates for 2014-2015 to 2017-2018)
(Budget Strategy and Outlook, Budget Paper No. 1, 2014-15 Page 6-10)
05. Programme expenses
Table 3.1 reports the top 20 expense programmes in the 2014-15 financial year. These
programmes represent approximately two thirds of total expenses in that year. More
than half of the top 20 expense programmes provide financial assistance or services to
seniors, families, people with a disability, students, carers and the unemployed.
(Budget Strategy and Outlook, Budget Paper No. 1, 2014-15 Page 6-11)
06. Table 3.1: Top 20 programmes by expenses in 2014-15
2013-14 2014-15 2015-16 2016-17 2017-18
Programme Function $m $m $m $m $m
Income Support for
People with Disability SSW 16,098 16,891 17,354 17,940 18,500
(Budget Strategy and Outlook, Budget Paper No. 1, 2014-15 Page 6-11)
07. Expenses for the Disability Support Pension (DSP) are estimated to grow by
2.7 per cent in real terms from 2013-14 to 2014-15 and 1.7 per cent in real terms from
2014-15 to 2017-18 due to increases in payment rates. Growth is expected to slow from
2017-18 due to changes to indexation arrangements that take effect from that year. The
use of DSP impairment tables underpins low growth in DSP recipient numbers, with
an estimated average growth of 0.25 per cent per annum over the forward estimates.
(Budget Strategy and Outlook, Budget Paper No. 1, 2014-15 Page 6-28)
08. Restart — boosting the wage subsidy for mature age job seekers
The Government will provide an additional $304.1 million over four years from
2014-15 to boost the wage subsidy for mature age job seekers, through a Restart
Programme.
From 1 July 2014, a payment of up to $10,000 will be available to employers who hire a
mature age job seeker (including those on the Disability Support Pension) aged
50 years or over.
Payments will commence after the worker has been employed for at least six months
and will be paid in the following instalments:
• $3,000 after six months of employment;
• $3,000 after 12 months of employment;
• $2,000 after 18 months of employment; and
• $2,000 after 24 months of employment.
The Restart Programme will build on the Government’s election commitment to
introduce a seniors employment incentive payment.
The $220.7 million over four years previously announced at the Mid-Year Economic and
Fiscal Outlook 2013-14 will be redirected to the Restart Programme.
(Budget Measures, Budget Paper No. 2, 2014-15 Page 97)
09. Disability Support Pension — compulsory participation requirements for
recipients aged under 35 years
The Government will provide funding of $29.3 million over five years from 2013-14 to
introduce compulsory activities for Disability Support Pension (DSP) recipients under
35 years of age with an assessed work capacity of eight hours or more a week who
have a participation plan. These activities will vary depending on a person’s
circumstances and will focus on obtaining employment. Sanctions for non-compliance
will be introduced.
DSP recipients with a severe impairment and an assessed work capacity of less than
eight hours a week will be exempt.
This measure forms part of the Government’s broader welfare reform agenda.
Any savings from this measure will be redirected by the Government to repair the
Budget and fund policy priorities.
(Budget Measures, Budget Paper No. 2, 2014-15 Page 195)
10. Disability Support Pension — reduced portability
The Government will achieve savings of $12.3 million over five years by reducing the
amount of time Disability Support Pension (DSP) recipients can leave Australia and
still receive DSP. Recipients will receive DSP for a maximum of four weeks in a
12 month period should they travel overseas. All DSP recipients who leave Australia
on or after 1 January 2015 will be subject to the new rules. Currently, DSP can be paid
for absences from Australia for up to six weeks, on multiple occasions in any one year.
Portability extension and exception provisions, which allow a longer or unlimited
portability period under special circumstances, will continue to apply.
The savings from this measure will be redirected by the Government to repair the
Budget and fund policy priorities.
(Budget Measures, Budget Paper No. 2, 2014-15 Page 196)
11. Disability Support Pension — review recipients aged under 35 years
The Government will provide $46.4 million over five years from 2013-14 to review,
against current eligibility criteria, Disability Support Pension (DSP) recipients aged
under 35 years who were granted DSP between 1 January 2008 and 31 December 2011.
Recipients who are granted continued eligibility following this review will be required
to complete a programme of activities to build their work capacity. The measure will
terminate on 30 June 2019.
Recipients granted DSP before 1 January 2008 or who have a severe impairment with
work capacity assessment of less than eight hours a week will be exempt.
This measure forms part of the Government’s broader welfare reform agenda.
(Budget Measures, Budget Paper No. 2, 2014-15 Page 196)
12. As well, people under 35 on the Disability Support Pension, but with some capacity to
work, will have engagement plans to help them participate in the workforce.
(BUDGET SPEECH 2014-15 Page 6)
13. We will help change that culture by providing a payment of up to $10,000 to a business
that employs an Australian over the age of 50 who has been on unemployment benefits
or the Disability Support Pension for six months.
(BUDGET SPEECH 2014-15 Page 6)
14. Over the last ten years real spending
on social security and welfare has
increased. Without policy change,
over the next ten years spending
on the Disability Support Pension is
projected to increase by 75 per cent.
(Budget 2014-15 Overview Page 8)
15. The Government will also index
pensions, including the Age Pension
and the Disability Support Pension,
to inflation rather than wages from
September 2017. At the same time,
eligibility thresholds will be paused
for three years. This will assist in
meeting the rising costs of providing
the pension, while ensuring pensions
keep up with the cost of living.
(Budget 2014-15 Overview Page 9)
16. The Government will continue to provide assistance for families, seniors,
people with a disability and carers, and those most in need.
(Budget 2014-15 Social Services Page 1)
17. Income support for People with Disability (mostly Disability Support Pension) 12% of
Total Social Security and Welfare expenditure
(Budget 2014-15 Social Services Page 4)
18. Changes to the Disability Support Pension
The Government is changing the DSP to encourage people with a disability to participate in the workforce
We want to support those who most need assistance, but we also want to
be a Government that helps people work. That’s why we’re making
some changes to the Disability Support Pension (DSP). Currently,
over 800,000 Australians are on the DSP. Australia has lower rates
of workforce participation among people with disability than other
OECD countries.
Expenditure on DSP is currently more than $16 billion per year, and
is projected to grow by 27 per cent by the end of the decade. To improve
the sustainability of the DSP, the Government is announcing reforms
to encourage people with disability to participate in the workforce where
they have capacity to work. The reforms will help target the DSP to
those most in need.
(Budget 2014-15 Social Services Page 20)
19. Review of DSP recipients
Some DSP recipients aged under 35 who were previously granted DSP
between 2008 and 2011 will now be assessed under the current DSP
Impairment Tables. People with a severe or manifest disability will not
be reassessed.
People who have some capacity to work now or in the future will
be helped to do this through programmes, services and activities.
(Budget 2014-15 Social Services Page 20)
20. Compulsory activities for recipients, aged under 35
The Government wants to ensure that people with some work capacity
are supported to take steps to seek employment.
Under this reform, recipients under 35 will have a participation plan
which includes activities that will genuinely assist in labour market
participation. These activities could include Work for the Dole, job
search, work experience, education and training, and connection with
Disability Employment Services.
(Budget 2014-15 Social Services Page 20)
21. New portability requirements
The Government is tightening DSP portability requirements, but DSP
recipients will still be able to leave Australia for up to four weeks in a
12 month period and be paid DSP while overseas.
Some exceptions will remain, such as for terminally ill people and
those assessed as having a severe impairment.
(Budget 2014-15 Social Services Page 20)
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Post by keepyourchinup on May 13, 2014 22:09:24 GMT 7
I have gone through all 16 Budget Papers for the 2014-2015 Australian Federal Budget, and extracted all items that relate to DSP. I have excluded NDIS, Disability Employment Services, and internal Governmental costing matters.
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Post by keepyourchinup on May 13, 2014 22:11:34 GMT 7
Please note that are notable changes to DSP for the under 35's, and a change to Portability to 4 weeks overseas in a 12 month period except for those who are terminally ill or who have a severe impairment.
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Post by highlander4000 on May 13, 2014 22:24:13 GMT 7
Its just confusing what that means to people with a severe impairment who dont have unlimited portability. They dont clarify it.
Firstly is severe impairment 20 points under the new tables, thats what another guy said.
but they dont say what the changes are for the people who fit into the severe exemption category.
if there is no change to people with a severe impairment than they would still be under the 6 week rule, travelling many times a year.
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Post by keepyourchinup on May 13, 2014 22:54:47 GMT 7
highlander4000, there are at least 3 different classes of DSP recipient:
1. Those that are terminally ill.
2. Those that have a severe impairment, that being their Job Capacity Assessment is that they are not expected in the future to be able to work 8 hours or more per week (I am in that group).
3. Those that are neither class 1 or 2.
It would appear from the Budget Papers, classes 1 & 2 will not be changed, so I will still be able to stay overseas unrestricted, as my Doctors have made it clear they never expect me to be able to work again, and that was accepted by Centrelink International Services quickly in February 2013.
For those in class 3, they would appear to be subject to the 4 weeks overseas in a 12 month period restriction.
If my DSP situation changed, and I was obliged to return to Australia, I would be on the plane as soon as my lungs would be safe on a long flight. I would not complain at all, as I am incredibly grateful to receive any money from the Australian Government. I am in the Philippines getting Registered Nursing care to try and get me better, and I see REAL poverty all around me, so I am overjoyed to receive my DSP each fortnight.
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Post by keepyourchinup on May 13, 2014 23:00:55 GMT 7
highlander4000, it is my understanding that if you have been granted "Severe Impairment" (inability to work 8 hours or more in a week) by Centrelink Management, then if you apply to Centrelink International Services to travel overseas for health reasons, you are more than likely to be granted Unlimited Portability, as I have been only just over a year ago. The key to this process is not really the Government, but the details of your impairment provided by your Doctors, and their acceptance by Centrelink International Services. I had no problem at all with anyone at Centrelink since 2008.
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Post by keepyourchinup on May 13, 2014 23:03:26 GMT 7
highlander4000, from my reading of the Budget Papers, there is now NO 6 week rule, and it has been replaced by the 4 weeks overseas in a 12 month period. If you are currently on the 6 week rule basis, then I think it changed for you to the 4 weeks overseas in a 12 month period. It is my understanding that prior to the Budget, the 6 week rule applied to all DSP recipients, except those who are Terminally Ill or granted "Severe Impairment".
Those who are Terminally Ill or granted "Severe Impairment" could apply to Centrelink International Services for what constitutes Unlimited Portability, where there in no return restriction at all, which is the case for me.
I had Centrelink Management at Nundah QLD explain to me at the beginning of the Centrelink International Services application process, that Centrelink had long ago accepted that I had been granted "Severe Impairment" status, and they showed me that on their computer screen.
If I was you, I would go back to your local Centrelink office and check on your status.
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Post by Banjo on May 14, 2014 9:48:27 GMT 7
highlander4000, from my reading of the Budget Papers, there is now NO 6 week rule, and it has been replaced by the 4 weeks overseas in a 12 month period. If you are currently on the 6 week rule basis, then I think it changed for you to the 4 weeks overseas in a 12 month period. It is my understanding that prior to the Budget, the 6 week rule applied to all DSP recipients. Those granted "Severe Impairment" could apply to Centrelink International Services for what constitutes Unlimited Portability, where there in no return restriction at all, which is the case for me. I had Centrelink Management at Nundah QLD explain to me at the beginning of the Centrelink International Services application process, that Centrelink had long ago accepted that I had been granted "Severe Impairment" status, and they showed me that on their computer screen. If I was you, I would go back to your local Centrelink office and check on your status. The 4 week rule will start on 1/1/15, anyone out of the country on that date will be entitled to finish the 6 weeks. |
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Post by keepyourchinup on May 14, 2014 10:03:16 GMT 7
santaclaus, thank you for the post. However, the details on the humanservices.gov.au website are incorrect. The Budget Papers list exceptions for terminally ill and severe impairment recipients. It is not unusual for Departments to make adjustments to their documentation as Budget matters are better understood.
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Post by keepyourchinup on May 14, 2014 11:08:05 GMT 7
From Minister Kevin Andrews' Media Release: From 1 July 2014, for certain Disability Support Pension (DSP) recipients aged under 35 years, the Government will introduce compulsory work-focused activities, such as work experience or education and training, to help increase their chances of finding and keeping a job. A targeted review will also be undertaken of DSP recipients aged under 35 years who originally accessed the payment under different rules between 2008 and 2011. Recipients will have their work capacity reassessed against the current impairment tables, and will be provided with support needed to allow them to develop their work capacity. From 1 January 2015, recipients of the DSP who travel overseas for more than four weeks in a twelve month period will need to reapply for the payment. There will be some exemptions, for example, for people with terminal illness or permanent and severe disability and no future work capacity. kevinandrews.dss.gov.au/media-releases/84 |
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Post by wbmania72 on May 14, 2014 21:49:43 GMT 7
i am now certainly sure that they completely lost the f@#$en plot.
are they actually willing to waste nearly $70 million of tax payers money to save(!) only 12 mil.in the next 5 years from DSP'ers?
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