Assessing payment rates and independence for Disability Support Pension customers under 21 years 008-03140000

DSP customers under 21 years who do not have a dependent child get different youth rates of DSP if they are:

• dependent, or
• independent

Customers under 21 years can get the independent rate if they meet any one of the following criteria:

• are or have been married or in a registered relationship
• are or have been a member of a couple for at least one year, or 6 months in exceptional circumstances
• have or have had a dependent child
  Note: if they currently have a dependent child in their care, the '21 years and over' common pension rate (referred to as 'adult pension rate' in this file) will be paid automatically when the dependent child details are recorded
• are an orphan
• are a refugee without parents in Australia and not dependent on anyone else
• their parents cannot exercise their responsibilities. For example, in prison, mentally incapacitated, living in a nursing home or missing
• in state care or only left state care due to their age
• have worked an average of 30 hours per week for at least 18 months during any 2 year period
• have worked part-time for at least 15 hours per week for at least 104 weeks (time worked does not have to be consecutive) since leaving secondary school
• earned at least 75% of the National Training Wage Schedule (NTWS) rate in any 18 month period since last leaving secondary school
• 16 or 17 years old and live away from the parental home due to their disability or medical condition
• 18 to 20 years old (inclusive) and live away from the parental home
• it is unreasonable for the customer to live at the parental home

It is important the correct coding is used because it determines:

• the correct rate of DSP for the customer's circumstances
• if their independence status needs to be reviewed
• if the customer is subject to Income Management

Customers aged 16 or 17 years old can be paid the independent rate if it is UTLAH due to:

• extreme family breakdown, other similar exceptional circumstances, or
• their parents are unable to provide a home

Note: a social worker referral is required for all UTLAH assessments to determine the independent rate. If a customer asks to speak to a social worker about a separate issue, an appointment must be booked.

DSP customers are not subject to a Parental Income Test (PIT).

Depending on the customer's circumstances, DSP customers under 21 years can be paid at either of the following rates:

• Common (adult) pension rate - rate applicable for DSP when the customer is aged 21 years or over, or under 21 years with a dependent child, or
• DSP youth rate - rate payable for customers under 21 years without children

Example of the application of the different rates relevant to customer's circumstances, a DSP customer who:

• currently has a dependent child in their care is eligible for the adult pension rate from the date the child entered their care
• previously had a dependent child in their care is eligible for the independent DSP youth rate from the date the child left their care

The References page contains a link to the Social Security Guide references: 5.1.8.10 Common pension rates and 5.1.5.10 DSP - current rates.

Non-reviewable independent status for DSP is granted on the basis of circumstances not subject to change. This status is also transferrable where it was assessed for a customer claiming Youth Allowance (YA) or ABSTUDY and the customer is now claiming DSP.

Reviewable independent status is granted on the basis of circumstances subject to change. Under reviewable independence status, a DSP customer under 21 years of age will no longer remain independent if their circumstances change and they cease to meet the conditions for which their independent rate was approved.

The Resources page contains independence categories that are subject to review.

Where a DSP customer aged under 21 years is being paid at the independent rate, their circumstances may need to be reviewed if they return to live in the parental home. Depending on their changed circumstances, the customer may:

• continue to meet their current independence criteria, or
• meet other independence criteria or eligibility for the '21 years and over' adult pension rate, or
• not meet any independence criteria, and will get the dependent rate

If a DSP customer is not eligible for a higher youth rate under one independence category, they may be eligible for another reason.

For example, customers aged:

• 18 to 20 years can be assessed as independent if they are living away from their parental home for any reason, based on their confirmed current address details
• 16 or 17 years may be assessed as independent if:
• the customer identifies it is 'unreasonable to live at home' (UTLAH), due to circumstances such as family breakdown, violence or risk to their safety and wellbeing. Service Officers must book these customers a UTLAH appointment with a social worker, to assess UTLAH eligibility. See Unreasonable to live at home (UTLAH) initial contact for Youth Allowance (YA), Disability Support Pension (DSP), Special Benefit (SpB) or Tertiary Access Payment (TAP), or
• the customer is living away because of their disability or a medical condition. This includes living in disability accommodation or alternate accommodation that allows them to be closer to treatment or support services

Customers who contact and do not clearly meet any DSP independence category should be referred to details on the Services Australia (the agency) website which explains the full-range of options. Customers should be invited to consider the details and contact again if they want to be assessed as independent for any reason.

The Resources page contains independence categories that are subject to review.