Disability payments and services which may no longer be granted 008-03170000

Before the introduction of Disability Support Pension (DSP) in 1991, IA was payable to all customers receiving Sheltered Employment Allowance, and all Invalid Pension customers who were undertaking training at an activity therapy centre or an adult training centre, or independent living training.

IA was abolished on 12 November 1991. However a savings provision allows for the continuation of payment for as long as the customer receives DSP and remains engaged in the qualifying activities. The Process page explains how to action a change of circumstances affecting entitlement IA.

The rate of IA was similar to the rate for Rent Assistance (RA) at the time. Customers are precluded from receiving both payments. Therefore, if a customer's DSP rate includes an amount for IA their rate of DSP cannot include any RA.

Customers who still receive IA may choose to have their IA cancelled, which would enable them to be paid RA if they are qualified for it. However, once it is cancelled, IA cannot be re-granted. A customer who surrenders their IA for RA may be disadvantaged if they later move into government or other accommodation that does not attract RA.

Sheltered Employment Allowance

This was payable if a customer was engaged in sheltered employment or a supported employment program under the Disability Services Act.

Therefore, DSP customers may be subject to the income and assets tests as well as working credit and employment income at nil rate period if they

• were receiving Sheltered Employment Allowance at 11 November 1991, and
• are employed outside a workshop under a supported employment program funded under the Disability Services Act

These customers remain qualified for DSP. Incentive Allowance will not be paid during periods where the customer is in an employment income nil rate period.

Customers formerly in receipt of Sheltered Employment Allowance remains qualified for Incentive Allowance if they remain engaged in sheltered or supported employment, such as employment at an Australian Disability Enterprise (ADE). A physical absence from a supported employment program or a temporary absence does not necessarily mean they have ceased to be engaged in that employment. The reason for the absence is the determining factor, not the length of the absence. Incentive Allowance can remain payable as long as there has not been a severance of the sheltered or supported employment, regardless of the length of absence.

When IA is no longer payable

Similar rules apply to absences of IA customers from activity therapy centres, adult training centres and independent living training. IA can continue to be paid during such absences if the decision maker is satisfied the customer will return to the centre or program.

Automatic cancellation of IA

When a customer ceases receiving DSP their IA should automatically cancel; including when a customer transfers to Age Pension or Carer Payment.

Restoration of IA

The savings provision allows for restoration of Incentive Allowance only in very limited circumstances.

When reviewing entitlement to Incentive Allowance, consider whether the customer remains qualified for the payment and if they would be better off receiving Rent Assistance. The Process page contains further details.

Manual restoration of IA following the restoration of DSP

If DSP is cancelled and subsequently restored, IA will not automatically restore. In these circumstances (provided the customer maintains an ongoing eligibility to IA) Service Officers must manually restore IA. The Process page contains for further details.

CDA provided assistance to families that had a child with a disability. It was replaced by Carer Allowance (CA) for care receivers aged under 16 on 1 July 1999. A savings provision applies to eligible customers. There were no income or assets tests for CDA.

Customers who were eligible for CDA on 30 June 1998 were transferred to CA. These customers are protected by a five year savings provision: provided certain conditions are met, they will continue to be paid under the old CDA arrangements until 30 June 2003 and will not be subject to Centrelink initiated medical reviews during that period.

In recognition of the impact a child's disability has on a family, the program provided 2 levels of assistance depending on the level of disability:

• Full CDA provided a Health Care Card (HCC) plus financial assistance in respect of the disabled child. This payment acknowledged the impact on the family in social, occupational, emotional and financial terms.
• Health Care Card only CDA provided a HCC in respect of the disabled child whose disability is less severe, but who required substantially more care and attention because of the disability for more than 14 hours per week.

DNCB was a supplementary payment made to people caring for the frail aged or people with disabilities, in their own home and who required a level of care equivalent to that provided in a nursing home.

DNCB was administered and paid by Family and Community Services (FaHCSIA). As of 1 July 1999, DNCB was replaced by Carer Allowance (CA) for care receivers aged 16 or over. Customers in receipt of DNCB were transferred to CA, which is administered by Centrelink.

DNCB could be paid in addition to Carer Payment. It was a non-taxable payment and not subject to any income or assets tests.

DWS was a payment introduced on 1 July 1994 and was abolished on 1 January 1998. DWS was based on the qualification and payability conditions for Disability Support Pension (DSP) and was available to persons who participated in the Supported Wage System (SWS).

When DWS was abolished all existing DWS customers were transferred to DSP. The eligibility criteria for DSP was extended to allow payment to be made to those customers participating in the SWS.

Prior to 1 January 1998, people who commenced employment in the SWS through the predecessor of the Commonwealth Department of Social Services (DSS) were encouraged to transfer to DWS.

Rehabilitation Allowance was phased out on 12 November 1991. Customers who were in receipt of Rehabilitation Allowance at that time continued to receive payment while they remained in their program. There are currently no customers left on Rehabilitation Allowance.

Rehabilitation Allowance was previously shown on the Benefit Status line of Centrelink's system as RBH.