Income Test for Disability Support Pension customer who is under 21 years with no dependent children 108-03010040

A customer under 21 years with no dependent children will have an ongoing taper rate of 50 cents in the dollar if they:

• claim DSP on or after 20 September 2009, or
• are currently on DSP and have no affecting income

The DSP customer will be assessed under the youth rates for single pensioners or the adult pension rates for partnered couples. They are not eligible for the Pension Supplement until they turn 21 years. For DSP customers under 21 to be eligible for Pension supplement they need to have dependent children.

A separate rate is calculated under both the Income Test and the Assets Test. The lowest rate calculated is the rate payable to the customer.

Customers who are granted a pension under an International Agreement may be subject to a direct deduction Income Test if they are receiving income from that agreement country. Direct deductions may also apply to compensation income.

For customers with employment income, apply the Working Credit rules to the total ordinary income before applying the Income Test.

DSP (Blind) may be exempt from the Means Test, but income and assets details are required to determine their partner's entitlement, or if the customer wishes to apply for Rent Assistance. However, they may provide their income and assets details if they wish.

An exempt asset is one that is disregarded under the Assets Test, irrespective of its value. However, an exempt asset may have assessable income. For example, the proceeds from the sale of the principal home are an exempt asset but the proceeds when invested are subject to deeming as a financial asset.

There are four broad categories of exempt income. Although exempt income is disregarded as income, the amount received may be an assessable asset and if the funds are invested, deeming provisions apply.

National Disability Insurance Scheme (NDIS) funds received from the National Disability Insurance Agency (NDIA), (whether received periodically or as a lump sum and including interest accrued), which are deposited into an account specifically for the purpose of managing the customer's NDIS plan, are exempt from the Income and Assets Tests and deeming. They are not required to be reported or if reported should not be taken into account in the income and asset assessment.