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Budget Priorities

Next Steps in Welfare Reform

Recognising and improving the capacity of people with disabilities

Since 1990, the number of people receiving the Disability Support Pension (DSP) has more than doubled. One in nine Australians aged between 50 and 64 years presently receive DSP. Many people receiving DSP are less self-reliant than they could be with a better combination of assistance, incentives and participation requirements.

 

DSP recipients have doubled since 1990

As part of Next Steps in welfare reform, the Government will give greater focus to improving the work capacity of people with disabilities. It will provide over 73,000 new places over three years in disability employment services, rehabilitation services, the Job Network, education and training and the Personal Support Programme.

 

more new places for employment assistance and training

Beginning in July 2003, DSP eligibility will be restricted to people with limited work capacity (people who are unable to work for 15 hours or more per week rather than people unable to work 30 hours per week as is currently the case). Centrelink will be able to consider whether a person could benefit from a broader range of services, including employment and rehabilitation assistance, to assist in reskilling for employment.

Most people affected by the changes who are unable to obtain work, or are undertaking work-related support programmes, will be eligible for Newstart Allowance. Changes to the DSP eligibility criteria should result in net savings of around $336 million over four years.

 

changed eligibility to Disability Support Pension for people able to work at least 15 hours per week

Commonwealth Expenditure on Assistance to People with Disabilities

Commonwealth Expenditure on Assistance to People with Disabilities

(a) Includes funding under the Commonwealth-State-Territory Disability Agreement (CSTDA) of $105.3 million in 2002-03, $107.3 million in 2003-04, $109.4 million in 2004-05 and $111.6 million in 2005-06 to assist States and Territories to address unmet need for disability services.

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