An analysis of the changes to the Disability Support Pension announced in this year’s budget.

In a brief introduction to the budget briefing, workplace relations minister Kevin Andrews said that the budget measures were not targeting those who were ‘genuinely disabled,’ the assumption being that those who have been targeted are not genuine. “Work is the best form of welfare,” the minister told the room, repeating a line from a press release released a month ago.

‘Growing welfare dependency’ has been highlighted by the government as the justification for the changes announced on budget night, and while it may be true that there has been an increasing proportion of working age Australians on various forms of income or welfare support, there has been no evidence presented that Australia has a disproportionately high number of people on the Disability Support Pension. These two, separate, matters have been conflated and been used by the government as ‘evidence’ to support the need to bring about changes to the DSP. The government’s figures have been refuted by OECD research circulated before the budget by ACOSS and welfare rights networks.

The ‘welfare to work’ package totalling $3.6 billion over four years is meant to “facilitate workplace participation” and, while programs that genuinely help people back into the workforce are welcome, there are a number of areas of concern.

People already on the DSP on budget night will be ‘quarantined’ from the changes and subject to the existing DSP criteria, broadly based on whether that person is capable of 30 hours per week work at award wages. But we have no guarantees that the government won’t revise this two-tier system in the future.

People who apply for DSP from now until 30 June next year will be assessed under the 30-hour rule, but from next July they will be subject to reviews under the 15-hour rule and may find themselves moved onto Newstart. We don’t know how this applies to people currently off the DSP who reapply after a period of work.

The budget papers refer to an ‘enhanced Newstart Allowance’ — what has changed is the ‘taper rate’, allowing people to earn more money from part-time work before their payments are reduced. This is in fact a very minor change and for people working part time on low wages won’t lead to a substantial increase in income.

People shifted from the DSP to Newstart will keep their Pensioner Concession Card for 12 months, after which they may qualify for a Health Care Card, which provides a reduced number of concessions. This is likely to be a major issue for concern for people with HIV, for whom the Pensioner Concession Card provides valuable savings on health, transport and other costs.

While the government has ignored NAPWA’s arguments for the introduction of a chronic illness card, NAPWA will continue to press the government for mechanisms that better meet the needs of people with HIV/AIDS.

Finally, no detail has been provided about the criteria to be used to assess whether a person is capable of working more than 15 hours under the ‘Comprehensive Work Capacity Assessment’. There is also no guarantee that those doing these assessments will have any experience in what it means to be managing chronic illness and there is no assurance that the particular needs of people with HIV/AIDS will be understood.

Being on Newstart includes significant regular reporting requirements, work participation, mutual obligations and work for the dole. It is not the income support system that NAPWA has been arguing for — that comprehensive medical assessment should be the most significant information used to assess ability to work.

There will be a series of information sessions run by the Department of Education and Workplace Relations from 16—27 May in major cities and rural centres. Details can be found on our website www.napwa.org.au.

John Rule is NAPWA’s HIV Living Policy Officer.