The Disability Support Pension (DSP) is an essential financial assistance program for Australians who have permanent disabilities that prevent them from working full-time. However, many DSP recipients want to work in some capacity and earn extra income.
The big question is: How much can you earn before DSP reduces?
Understanding the Disability Support Pension (DSP)
The Disability Support Pension (DSP) is a payment from Centrelink for individuals with a permanent physical, intellectual, or psychiatric condition that significantly affects their ability to work.
While DSP is designed for those who cannot work full-time, recipients are allowed to work part-time and earn additional income, as long as they stay within Centrelink’s income and work-hour limits.
Can You Work While Receiving DSP?
Yes! You can work and still receive DSP, but you must stay within the income and work-hour limits to avoid reductions or cancellation of your payments.
Related: How Much Is the Disability Support Pension (DSP) in Australia?
How Much Can You Earn Before DSP Is Affected?
1. Income Thresholds for DSP (2024 Rates)
Centrelink allows DSP recipients to earn a certain amount before reducing their payments. The current income thresholds are:
- Singles: You can earn up to $212 per fortnight before your DSP starts reducing.
- Couples (combined income): You and your partner can earn up to $372 per fortnight before your DSP is affected.
Any income above these limits will reduce your DSP by 50 cents for every extra dollar earned.
2. Income Cut-Off Points (When DSP Stops Completely)
If your income exceeds a certain limit, your DSP payments will stop entirely:
| Recipient Type | Fortnightly Cut-Off Point |
|---|---|
| Single | $2,500.80 |
| Couple (combined) | $3,822.40 |
| Couple separated due to illness | $4,949.60 |
These limits ensure that DSP is only provided to those who genuinely need financial support.
3. How Does Centrelink Reduce Your DSP Payment?
Once you exceed the free income threshold, your DSP is gradually reduced.
🔹 For every $1 earned over the threshold, DSP is reduced by 50 cents.
Example Calculation:
- You earn $312 per fortnight.
- The first $212 is exempt.
- The remaining $100 is subject to the 50-cent rule ($100 × 50% = $50).
- Your DSP payment will be reduced by $50.
How Many Hours Can You Work on DSP?
Besides income limits, there is also a work-hour limit for DSP recipients.
- You can work up to 29 hours per week and still receive DSP, as long as you meet the income test.
- If you work 30 hours or more per week, your DSP will be suspended for up to two years.
- If you maintain 30+ hours for more than two years, your DSP will be completely cancelled.
This rule ensures that DSP is only given to those who cannot work full-time due to their condition.
Related: How Long Can You Stay on DSP in Australia?
How to Report Your Income to Centrelink
If you are working while on DSP, you must report your income every fortnight to Centrelink.
How to Report Income
- Via MyGov website
- Using the Centrelink mobile app
- Calling Centrelink directly
What should you report?
- Your gross income (before tax)
- Any changes in your income
- Even if your income is $0, you must still report
Failing to report accurately and on time may result in overpayments, which you may have to repay later.
What Happens If You Earn Too Much?
If your income exceeds the DSP cut-off limit, your DSP payments will stop. However, you may still be eligible for:
- JobSeeker Payment (if you can work part-time)
- Carer Allowance (if you are caring for someone)
- Commonwealth Rent Assistance (if you are renting)
If your earnings drop again within two years, you can restart your DSP without reapplying.
Frequently Asked Questions (FAQs)
1. Can I work while on DSP and still receive payments?
Yes! You can work up to 29 hours per week and earn up to $212 per fortnight (singles) or $372 (couples) before DSP is reduced.
2. How much can I earn before my DSP stops completely?
Your DSP will stop if you earn more than $2,500.80 per fortnight (single) or $3,822.40 per fortnight (couple combined).
3. What happens if my DSP is cancelled due to high income?
If your DSP stops because you earned too much, you may be eligible for JobSeeker Payment or other Centrelink benefits. If your income drops again within two years, you can restart DSP without reapplying.
4. How often do I need to report my income to Centrelink?
Every fortnight. Even if you earned $0, you must still submit a report.
5. Can I lose my DSP if I work too many hours?
Yes. If you work 30+ hours per week, your DSP will be suspended for up to 2 years. If you maintain full-time work beyond this period, DSP will be permanently cancelled.
6. What if I make a mistake in my income report?
If you report incorrect income, contact Centrelink immediately to correct it. Failing to report accurately may result in overpayments or penalties.
Final Thoughts
- You can earn up to $212 per fortnight (singles) or $372 per fortnight (couples) without affecting your DSP.
- Your DSP reduces by 50 cents for every $1 earned over the limit.
- You can work up to 29 hours per week and still receive DSP.
- If your income exceeds the cut-off, DSP payments will stop.
- You must report your income to Centrelink every fortnight.
DSP provides financial security for Australians with disabilities while allowing them to earn extra income. By understanding the income rules, work-hour limits, and reporting requirements, you can maximize your earnings while keeping your DSP payments.
If you have any concerns, contact Centrelink or visit their website for the latest updates.
