When it comes to understanding the ‘pots’ of money that the government provides to those who need it, it can get confusing. If you’re new to the NDIS and have recently been claiming a disability support pension, you might wonder if you can continue to claim both. And, in many cases you can claim both types of funding.
There’s always the fear of ‘double-dipping’, though, so let’s understand the key differences between the NDIS and the disability support pension.
Disability support pension – what is it? And, who is it for?
The disability support pension is financial assistance for those with a permanent condition – physical, psychological or intellectual – that prevents people from engaging in work.
You will be paid through your Centrelink account, and it will be an amount based on your needs and how much your partner earns (if applicable). Centrelink will also need to know if your relationship changes, if you have a change in your medical condition or if you’ve received a large payment.
It’s good to note, though, that not everyone with a disability or a medical condition will be entitled to this funding. It needs to be proven that you cannot work due to your condition, so remember, medical records and other allied health reports are very important! You will need to follow the guidelines of what evidence to produce to ensure you get the payment.
Find out more about whether you’re entitled to this payment here.
If you’re not able to get the DSP then there are other options to help support you in your life.
Such as:
When you can’t work for a short amount of time:
The JobSeeker payment is for people between 22 and the aged-care pension. This is for people looking for work, but it’s also for people who are sick or injured and can’t commit to their usual job role.
If you’re caring for someone else
If you don’t have time to work due to supporting someone with a disability, or someone who is elderly or ill, then you will be entitled to a carer payment and a carer allowance.
If you’re 24 or younger
Youth allowance is a payment that can help support you if you’re looking for work, a student or an Australian apprentice.
What is the NDIS, and how can this pay for some aspects of my life?
The National Disability Insurance Scheme, or NDIS to you and me, is a government scheme that provides funding to people with a disability to ensure they get the most out of their life.
While it’s not technically ‘welfare’, as there isn’t a threshold dependent on your current earnings or financial situation, it can provide an amazing financial aid to your life.
The intention of this scheme is to increase the opportunities for people who have an impairment which might make life more challenging. This could be anything from getting a job, accessing new skills, building independence and capacity, and, sometimes, finding a suitable place to live.
The NDIS is based on the core values of an improved quality of life for all Participants of the scheme. You can make an application directly to the NDIS but you’ll need to make sure you’re eligible for the funding.
To be eligible for the NDIS, you must meet the criteria which is as follows:
- Aged between 7 and 65 (after 65, you’ll move on to a different funding called Aged Care but to make it even more confusing, sometimes a person can qualify for both types of funding: Aged Care and NDIS)
- Have a significant and permanent disability (one that impacts your life completely)
- Be an Australian resident
- Require necessary support i.e. personal care or community access
For more details on eligibility, read more on the NDIS website here.
So, what’s the real difference between the NDIS and DSP if they’re both payments for those with a disability?
Both funding options are there to support your life with a disability, but the disability support pension is for you to use as you see fit (within reason). The DSP is seen as a replacement for your working wages as you’re not able to work due to your disability or medical condition. So, as it’s your money, you can spend it on things which aren’t necessarily related to your condition.
You can spend your DSP on things like:
- Clothes
- Electronics
- Rent
- Food
Whereas your NDIS funding is strictly for things related to your disability. This could be anything like:
- Therapy to support you to reach your NDIS goals such as improved mobility with an Occupational Therapist or learning how to handle your emotions with a Psychologist
- Home modifications such as ramps
- Support workers to assist with personal care or community access
- Respite for you and your carers to get a break
You can be smart with your NDIS funding, but it all has to relate to your disability and how you’re using your funding to improve your quality of life i.e. improve how you’re living and thriving with your disability.
Key takeaways
Both these funding options are from different pots, as mentioned earlier, so it shouldn’t affect one another.
Remember, the income you receive through the NDIS is tax-free whereas your DSP will be taxed – much like how all working wages are taxed.
Want to find out more about life with the NDIS? Then read some of our other articles here.