We want to support those who most need assistance, but we also want to be a Government that helps people work. That's why we're making some changes to the Disability Support Pension (DSP). Currently, over 800,000 Australians are on the DSP. Australia has lower rates of workforce participation among people with disability than other OECD countries.

Expenditure on DSP is currently more than $16 billion per year, and is projected to grow by 27 per cent by the end of the decade. To improve the sustainability of the DSP, the Government is announcing reforms to encourage people with disability to participate in the workforce where they have capacity to work. The reforms will help target the DSP to those most in need.

Review of DSP recipients

Some DSP recipients aged under 35 who were previously granted DSP between 2008 and 2011 will now be assessed under the current DSP Impairment Tables. People with a severe or manifest disability will not be reassessed.

People who have some capacity to work now or in the future will be helped to do this through programmes, services and activities.

Compulsory activities for recipients, aged under 35

The Government wants to ensure that people with some work capacity are supported to take steps to seek employment.

Under this reform, recipients under 35 will have a participation plan which includes activities that will genuinely assist in labour market participation. These activities could include Work for the Dole, job search, work experience, education and training, and connection with Disability Employment Services.

New portability requirements

The Government is tightening DSP portability requirements, but DSP recipients will still be able to leave Australia for up to four weeks in a 12 month period and be paid DSP while overseas.

Some exceptions will remain, such as for terminally ill people and those assessed as having a severe impairment.