The impact of income on DSP

What some people think

Many people with intellectual disability who receive the Disability Support Pension (DSP) think they will lose money if they work and earn an income. Sometimes people are even told it’s good to be paid very low wages so that they don’t affect their DSP.

You are always better off if you earn an income

The Australian Government wants people with intellectual disability to be able to work. The DSP rules let people work up to 30 hours a week without losing their payment. In 2025, a single person aged 21 or over could earn $2575.40 a fortnight before they would stop receiving their DSP.

You can learn more about the DSP rules on the Services Australia website.

How does earning an income impact the DSP?

For every dollar a person earns over a certain amount (in 2025, this was $218 per week), they lose 50 cents of their DSP.

This means the person is 50 cents better off for every dollar that they earn. Here are some examples:

• If someone earns $0 a fortnight, then their total income is just their DSP.
• If someone earns $218 a fortnight, then their total income is their DSP + $218.
• If someone earns $618 a fortnight, then their total income is their (DSP – $200) + $618 = some DSP + $618. Their DSP payment is reduced by $200 because they have earned more than $218 a fortnight. However, they still end up with more money.

So, working actually means people will have more money.

The two-year rule

A person’s DSP will be put on hold for up to 2 years if they:

• Earn more than $2575.40 a fortnight as a single for more than 12 fortnights in a row.
• Earn more than $3934 a fortnight as a couple for more than 12 fortnights in a row.
• Work more than 30 hours a week in open employment.

This means people maintain their eligibility for the DSP and won’t need to reapply for it within those two years. They will just need to tell Centrelink about the change in their circumstances for the payments to start again.

If a person’s DSP is put on hold within the 2-year period, they still have access to their Concession Card during this time. They will only lose their Concession Card if their DSP is cancelled after 2 years of earning over the income threshold.

You can read more about the DSP income test and cut-off limit on the Services Australia website.