The Disability Support Pension (DSP) is a crucial financial aid for Australians with long-term disabilities that significantly impact their ability to work. If you’re receiving DSP or considering applying, you might be wondering: How long can you stay on DSP in Australia?
What Is the Disability Support Pension (DSP)?
The Disability Support Pension (DSP) is a social security payment provided by Services Australia (Centrelink) to individuals who have a permanent physical, intellectual, or psychiatric condition that prevents them from working at least 15 hours per week at minimum wage within the next two years.
Who Is Eligible for DSP?
To qualify for DSP, you must meet the following conditions:
- Be aged between 16 and Age Pension age (currently 67 years)
- Have a permanent medical condition diagnosed by a doctor
- Your condition must score at least 20 points under the impairment tables
- Be unable to work at least 15 hours per week for at least two years
- Meet the residency requirements (generally must be an Australian resident for at least 10 years)
If you meet these conditions, you may be eligible to receive DSP. But how long can you stay on DSP? Let’s break it down.
Related: How Much Is the Disability Support Pension (DSP) in Australia?
How Long Can You Stay on DSP?
Once approved for DSP, there is no fixed time limit—you can receive DSP indefinitely as long as you continue to meet the eligibility criteria. However, certain circumstances can affect your DSP payments, including:
1. Until You Reach Age Pension Age
DSP is available until you reach the Age Pension age, which is currently 66 years and 6 months but will increase to 67 years by July 2023.
Once you reach this age, you cannot stay on DSP—you will need to transfer to the Age Pension instead. Centrelink will notify you when it’s time to make the switch.
2. If Your Medical Condition Improves
DSP is for permanent disabilities, but if your medical condition improves and you are able to work, Centrelink may review your eligibility.
🔹 Medical Reviews: Centrelink conducts regular medical reviews to ensure that DSP recipients still qualify. If they determine that your condition no longer meets the criteria, your DSP may be cancelled.
🔹 What Happens If You Lose DSP? If your DSP is cancelled due to a medical review, you will continue receiving payments for 42 days to allow you time to adjust or appeal the decision.
3. If You Start Working Too Many Hours
Many DSP recipients want to work but are worried about losing their payments. Here’s how work affects DSP:
🔹 You can work up to 29 hours per week without losing DSP
🔹 If you work 30 hours or more per week, DSP will be suspended for up to 2 years
🔹 If you maintain 30+ hours per week for over 2 years, your DSP will be permanently cancelled
This system is designed to encourage work while still supporting those who need DSP.
4. If Your Income or Assets Exceed the Limits
DSP is means-tested, meaning Centrelink checks your income and assets to determine how much you can receive.
🔹 If you earn too much from work or have too many assets, your DSP may be reduced or cancelled.
🔹 The current income threshold (as of 2024) is $204 per fortnight for singles before your DSP starts reducing.
🔹 The asset limits vary depending on whether you own a home.
If your financial situation changes, you must report it to Centrelink to avoid overpayments or penalties.
5. If You Travel or Move Overseas
DSP is designed for people living in Australia, but you can still travel overseas for up to 28 days in a 12-month period without affecting your payments.
🔹 If you travel for more than 28 days, your DSP may be paused or cancelled unless you qualify for an exemption.
🔹 If you move overseas permanently, you may lose your DSP entirely unless you qualify under an international agreement.
6. If You Are Imprisoned or Confined in a Psychiatric Facility
🔹 If you are in prison or a psychiatric hospital due to a criminal offense, your DSP payments will be suspended for up to 2 years.
🔹 After 2 years, your DSP may be cancelled if you remain confined.
Related: How much can you earn before DSP reduces?
What Happens If DSP Is Cancelled?
If your DSP is cancelled for any reason, you have options:
- Appeal the decision – You can request a review within 13 weeks of cancellation.
- Apply for another Centrelink payment – If you no longer qualify for DSP but still need support, you may be eligible for JobSeeker Payment or other benefits.
- Contact Centrelink – If your circumstances change again, you may be able to reapply for DSP in the future.
Key Takeaways
- You can stay on DSP until Age Pension age (currently 67 years).
- Your DSP may be cancelled if your condition improves or if you work too many hours.
- DSP is affected by income, assets, overseas travel, and imprisonment.
- If DSP is cancelled, you can appeal or apply for other payments.
DSP is a lifeline for Australians with disabilities, providing financial security and the ability to work within limits. Understanding the rules will help you maintain your payments and make informed decisions about your future.
If you have further questions, it’s always best to contact Centrelink or check the Services Australia website for the latest updates.
Disclaimer: The information provided here should not be considered as legal advice. For personalised assistance, consult with a professional or contact Centrelink directly.
