DSP and NDIS: What’s the difference?
We often get asked what the difference is between the National Disability Insurance Scheme (NDIS) and Disability Support Pension (DSP) and whether they can work together. The answer is yes: in many cases they can work together and you can get funding from both. Here we look at the differences between the NDIS and the Disability Support Pension, and how you can apply for both.
What is the Disability Support Pension?
The Disability Support Pension (DSP) is a financial help service for people who have a permanent physical, intellectual or psychiatric condition that stops them from working. It’s an Australian Government pension. You need to meet the non-medical rules and either the manifest medical rules or general medical rules to be eligible.
The DSP is paid through your Centrelink account and can be affected by how much you and your partner earn. You need to keep Centrelink informed if there is a change in circumstances such as if you receive a lump sum payment, your relationship changes, or if you have a change in your medical condition.
What is the National Disability Insurance Scheme?
The National Disability Insurance Scheme (NDIS) is a national scheme that funds eligible people to help them get the most out of life. The NDIS isn't welfare. The goal of the NDIS is to help people with a disability increase independence, access new skills, get a job or volunteer work, spend more time with family and friends, and to enjoy an improved quality of life.
To be eligible for NDIS funding, you must:
- Be aged between 7 and 65,
- Have a permanent and significant disability,
- Be an Australian resident, and
- Need reasonable and necessary support.
You can check your eligibility here. If you believe you’re eligible, you can make an application directly to the NDIS.
When you receive your NDIS plan, you will receive a certain level of funding in each category. These categories are Core Supports to help you with everyday activities, Capacity Building to help build your independence and skills, and Capital Supports for higher cost items and modifications that can increase your independence.
Depending on your plan, some examples of things your NDIS funding could pay for include:
- Help with daily life such as personal care, help with cleaning, cooking or meal delivery, help with yard maintenance, help when you’re out of the house or respite care,
- Transport to work or places that will help you achieve your goals, such as school or TAFE,
- Employment-related help for finding and keeping a job,
- A support worker to help you take part in the community, attend a class or social outing,
- Assistive technology and equipment such as communication devices or wheelchairs, and
- Home modifications like ramps or handrails.
What is the difference between the NDIS and DSP?
NDIS funding must be used to help you achieve your goals. There are no such restrictions on the funding from the DSP. It’s considered a replacement for a typical working wage, so you can use it for things not related to your disability, such as food, entertainment, or other living expenses.
Does the DSP impact the NDIS?
No, both these payments are from different funding bodies and aren’t related to each other. The income that you receive under the NDIS is tax-free and won’t affect your DSP.
This also means that if you’re eligible for one, it doesn’t mean you’re eligible for the other. You will have to apply separately for both.
Five Good Friends is a registered provider of NDIS in-home and community supports for adults. Our team are available to answer your questions and discuss the supports you can access under the NDIS.