Reforms in

Disability Support Pension in

AustraliaRedwan Rahman

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MAJOR REFORMSLegislative ChangesAssessment Regimes PoliciesBudgetary MeasuresPrograms

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LEGISLATIONS Social Security Act 1991

Employment and Workplace Relations Legislation Amendment Bill 2005

Social Security Determination 2011

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Continues……Social Security and Other

Legislation Amendment Act 2012

Social Security Determination 2014

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RELATED LEGISLATIONSThe Family Assistance and Other

Legislation Amendment Act 2011

The Social Services and Other Legislation Amendment Act 2014

ASSESSMENT REGIMES1987 Impairment Tables1991 Tables for the Assessment

of Impairment for Disability Support Pension 22 Tables

1997 passed by both Houses of the Parliament

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Continues…

2006 Medical model to Impairment/Work Capacity model

2010 Simplified assessment process2012 Impairment Tables- 15 Tables Legislative instrument means can be

updated at any time 2014 Program of Support Rule

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MEDICAL ASSESSMENT Prior to January 2015, Treating Doctor

ReportOn 12 Dec. 2014 the Government

announced new rules Under 35 from January 01, 2015 For others 01 July 2015

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Continues…Claimants provide evidence to

Centrelink with the support of a GPJob Capacity Assessor assess based

on Impairment TablesTo Program of Support To Govt. Contracted Doctor for evidence based review of medical conditions

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Policy: Participation2010 Voluntary participation 2010 Area Project Customer Advisor to communicate

with new DSP recipients in 3 months and 12 months In 2012 <35 years with work capacity of 8 hours and

more, to develop participation plan 2012 <35 years old DSP recipient, Interviews on a

quarterly basis for first 18 months and then twice a year.

2014 Compulsory participation

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Policy: Hours of work Work capacity/Hours of work

Until 2000 People can receive DSP if they have work capacity <30

In 2000 Inability to work reduced from 30 hours to 15 hours per week

Before 11 May 2005 DSP recipients could work up to 30 hours before their payment was suspended

On or after 11 May 2005 DSP recipients could work up to 15 hours before their payment was suspended

In July 2012 DSP recipients were allowed to work up to 30 hours a week continuously for up to two years without having their payment suspended or cancelled

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Policy: Client Review 2012 Service Update Review

Most at risk not meeting the current eligibility criteria From 1 July 2014, DSP recipients under 35 years of age with an assessed

work capacity of eight hours or more per week will be required to participate in ‘compulsory activities’ aimed at assisting them to find employment

Reclaims DSP on or after 3 September 2011, is to be assessed under the post 3 September 2011 rules. Means reclaims are treated as new claims

2014:DSP recipients aged under 35 years who were granted DSP between 1 January 2008 and 31 December 2011, eligibility will be reviewed against the revised Impairment Tables

From 27 November 2014, DSP starters were required to demonstrate that they had actively participated in a POS

2016 Additional medical reviews over next 3 years targeting those who are risk of not meeting eligibility criteria using 2012 revised Tables

2016 Government planned to send 30,000 DSP recipients for assessment

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Policy: Program of Support Rule

In September 2011 Government introduced Program of Support rule

DSP granted in 2007 would require to undertake POS

New applicant must be in a program of support for 18 month within last 36 months to quality for DSP

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ContinuesPOS which started before 5 January 2015,

It could be partially or wholly funded by the Commonwealth, or it is similar to a program funded wholly or partly by the Commonwealth

Programs that started on or after 5 January 2015, is funded wholly or partly by the Commonwealth

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POLICY: OVERSEAS TRAVELJuly 2012 DSP recipients with severe and

permanent with no work capacity can travel overseas indefinitely while retaining their pension

Until December 2014, DSP recipients were paid for temporary absences from Australia for up to six weeks, on multiple occasions on a given year

From 1 January 2015, DSP recipients will be able to travel overseas for no more than four weeks in a 12 month period and still receive the payment

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BUDGETARY MEASURES 2009-2010 Subsidies to employer, a new

Health Professional unit at Centrelink 2011-2012 Compulsory Participation 2012-2013 Health Professional Advice Unit

audited one percent of recent DSP claim over 12 months period

In 2014-15 to review 28,000 < 35 years 2016 subsidies to employers if claimant can be

engaged in work for 26 weeks 2016 government planned to review 30,000 in

the next three years

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PROGRAMS2003 Job Network DSP Pilot2006 developed various trials to engage in

employment2012 Participation Plan activities - Work for

the Dole, Job Search, Work Experience, Education and Training, and connection with the Disability Employment Services . This will be the first time that participation requirements have been attached to the DSP

2014 Participation plan

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CONTINUE INABILITY TO WORK RULE

From 1 July 2006, to have a CITW, a person must, among other things, be unable to work for 15 hours or more per week in the next 2 years

The DSP claimant made a claim on or after 3 September 2011, are subject to the 15 hour rule

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QUALIFICATIONAged between 16 years and the Age

Pension ageMeet the residency requirements Meet the income and assets testsPermanent physical, intellectual or

psychiatric conditions Cannot work more than 15 hours per week

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Continues Assessed as having a total of 20

points or more under the Impairment Tables

Continuing Inability to WorkMedical conditions that have been

fully diagnosed, treated and stabilisedParticipated in POS for 18 months

within 36 months

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A CRITICAL REVIEW OF THE REFORMS OF DSP

DSP GovernanceANAO report 2016 discusses the

incompetency of DSP implementation by the Government agencies

Efficiency, Time lines, 2013-14 almost 23% changed by Review Officers, 23% went to Tribunal, review process up to 12 months

Were suitable assessors engaged?

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Continue….Are the current claimants outcome

aligned with legislations?Clients profile review- were these

appropriately targeted?Documentations of decision? Good

practice of administrative law ? It contradicts with Australian Administrative Law Policy Guide 2001

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ContinueImpairment Tables – Why it took such a long

time to reform? An advisory committee recommended to review and evaluate before implementation

Program of Support and its referral process?Unclear decisions and not informed

decisionInconsistency in assessment

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ContinuesCould be varied decision between

Assessor and Centrelink DelegateHow does it link to human rights

especially ICSER 1966?How do clients group view it?What are the stakeholders’ view about

DSP?

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References

ANAO 2016 Qualifying for the DSP Federal Registrar of Legislation (1991). Social Security Act 1991.

Canberra, Federal Registrar of Legislation, Government of Australian. Australian Law Reform Commission (2012). Social Security Disability

Support Pension Social Security Act 1991 (Cth) s 96(2) available at http://www.alrc.gov.au/publications/5-social-security/disability-support-pension#_ftnref141 accessed on 14th April 2016

Productivity Commission (2011). Disability Support and Care FaHCSIA (2012). Guide to Social Security Law (2012) <

www.fahcsia.gov.au/guides_acts>.

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