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DSP Changes in the Air
24 January 2005

Australia — The Federal Government plans to slow growth in payments to disability pensioners by tightening controls on the way Centrelink gives people access to the benefit.

The policy is being constructed by Workforce Participation Minister Peter Dutton. It will build on legislation expected to come back to parliament this year that is designed to restrict eligibility by cutting back the maximum time a disability support pension recipient can work from 30 hours to 15 hours.

"We have got to make sure that those people going onto a disability support pension are legitimate," Mr Dutton said.

"I would support tightening the controls on it . . . and that's something we are looking at at the moment."

Mr Dutton, who is the first occupant of the three-month-old Workforce Participation portfolio, said re-engaging willing disability support pensioners in the workforce and lowering the number of people gaining access to the pension was his first priority for 2005.

"We have 300 people a day going onto the DSP and we need to make sure the disability support pension is preserved for those that most deserve it, and not for people who are going to try and park themselves onto it until they are age 65 and claim the age pension," Mr Dutton said.

The government spent $7.4 billion on disability support pensioners in 2003-04. More than half of those leaving it move onto the age pension at 65, never to work again.

Federal government expenditure on the DSP was 60 per cent more than the less-generous Newstart allowance last financial year.

The DSP imposes no mutual obligation activities. The Newstart allowance demands that job seekers sign up with the Job Network and actively look for work or take part in training or a work-for-the-dole project.

The popularity of the DSP the number of recipients more than doubled from 334,000 to nearly 697,000 over the past 13 years sparked concern in the government several years ago and follows long-term concerns from both sides of politics about how to determine who is and who is not incapacitated for work.

Mr Dutton has already tried to encourage DSP recipients who can work to get a job by opening up the services of the Job Network to them.

Source Australian Financial Review, 24 Januray 2005 - Cherelle Murphy
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