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.
Your personalised NDIS plan is split across three categories
When you're approved for the NDIS, you receive a personalised NDIS plan that outlines your goals and the funding allocated to help you achieve them. Plans are typically reviewed annually or when your circumstances change significantly.
Your funding is split across three support categories:
- Core Supports — everyday activities like personal care, cleaning, meal preparation, and community access
- Capacity Building — supports that grow your independence, skills, employment prospects, or social participation
- Capital Supports — higher-cost items like assistive technology, equipment, or home modifications
Five Good Friends is a registered provider of disability supports for adults. Learn more about the core supports we offer.
Choose how your plan is managed…
There are three main types of NDIS plan management:
- Self-management requires you to make agreements with your providers, pay for your supports, and handle all your admin.
- Plan management means a registered plan manager handles the financial administration on your behalf — a great option if you'd prefer not to deal with the paperwork.
- NDIA management means the agency manages it directly.
NDIS funding restrictions
There are some things NDIS funding cannot be used for. Day-to-day living costs like rent, groceries, or utility bills are not covered. Supports must be reasonable, necessary, and connected to your disability-related goals.
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.
The DSP and NDIS serve completely different purposes because they come from separate funding bodies:
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.
Get all your questions answered about the Disability Support Pension and NDIS
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.
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