Customer ceases or reduces work in the 2 year suspension period for Disability Support Pension (DSP) 008-03100020
This document outlines what to do when:
- a customer has ceased work or reduced their hours of work, and
- their DSP is suspended, or cancelled, because they had returned to work
It also helps to identify if the customer can have their DSP restored or needs to reclaim.
Mobility Allowance (MOB)
Check eligibility for MOB when a customer contacts in relation to reporting employment income, changing jobs or starting work.
See Change of circumstances for Mobility Allowance (MOB) customers.
Eligibility if working up to 30 hours per week
DSP customers can work up to 30 hours per week and stay on DSP as long as they remain eligible, this includes meeting the income test.
There may be some exceptions to this rule for people paid under an international agreement, or outside Australia.
Restoring payment
Where DSP was suspended or cancelled, due to a valid work return to work reason code, the customer's DSP can be restored within 2 years of the date of effect (DOE) of the suspension or cancellation if:
- they cease working 30 hours per week, or
- their hours drop below 30 hours per week, and
- their employment income does not preclude payment
All non-medical eligibility rules for DSP must be met to restore payment. For example, the income and assets tests, including compensation clearances.
From 1 January 2023, suspension of a customer's DSP can occur for up to 2 years if their:
- partner is getting DSP or Age Pension, and
- partner's employment income precludes the customer's payment
The suspension reason code is EPP. Restoration of a customer's DSP can occur within 2 years if their partner's employment income no longer precludes payment.
Customer must have notified starting work
To be eligible for the 2 year suspension, customers must notify Services Australia they have started work within 14 days of starting. When the customer notifies of their return to work, DSP is suspended/cancelled using one of the valid return to work reason codes.
If the agency is made aware the customer has returned to work without advising, or outside 14 days, DSP is cancelled using a different reason code. If the customer does not have a valid return to work code, DSP cannot be restored.
If a DSP customer did not notify of their return to work and then ceases work, they need to lodge a new claim if they wish to retest their eligibility for DSP.
Alternative payment while DSP suspended/cancelled
During the suspension or deemed suspended period, customers can receive an alternative income support payment if:
- they are not qualified for DSP due to the number of hours they are working, and
- their income does not preclude them from another payment
This payment must be cancelled if DSP is restored.
Customer has employment income with reduced hours
When the customer has employment income and still qualifies for DSP:
- If under Age Pension age, Working Credit may allow the customer to keep some of their income support payment while they are working
- If over Age Pension age and getting a pension (excluding PPS), they may be eligible to the Work Bonus
Related links
Change of circumstances for Mobility Allowance (MOB) customers
Restoration of Disability Support Pension (DSP)
Claiming Disability Support Pension (DSP)
Initial contact and identification of services for people with a disability
Identifying entitlements and services for the customer (CLK)
Commencing or returning to work Disability Support Pension (DSP)
General notification provisions and exceptions
Work Bonus and balance for pensioners of Age Pension age
Transitional rules for pension customers who were on payment at 19 September 2009
Income Test for Disability Support Pension customer who is under 21 years with no dependent children
Income Test for single pension customers
Income Test for partnered pension customers