TPD and Centrelink are two ways disabled Australians can receive financial support. People receiving a Disability Support Pension are often concerned that a TPD payout may negatively affect their fortnightly Centrelink payments.
At TPD Compensation Lawyers, we consider it our duty to educate people on the ins and outs of Total and Permanent Disability claims. We will fully assess your situation, advise you of your TPD entitlement, and discuss the potential impact on other benefits you are receiving.
Call 03 9966 7188 for your FREE consultation. Based in Melbourne, our TPD lawyers handle claims throughout Australia.
Are You Receiving Centrelink Payments?
The Disability Support Pension, or DSP, is a Centrelink payment for individuals with a ‘physical, intellectual or psychiatric condition that is likely to persist for more than 2 years’ and prevents them from making a living. You must meet two different sets of rules to qualify for DSP:
- Minimum age requirements, residence rules, and assessment of income and assets (known as non-medical rules).
AND - General or manifest medical rules.
One of the major differences between TPD and Centrelink is how disability is defined. Individuals with one of the conditions identified in the manifest medical rules or those who meet the criteria found in the general medical rules are eligible for the Disability Support Pension.
While the DSP is administered by Services Australia, TPD is managed by individual superannuation insurers. The definition of Total and Permanent Disability varies from one insurer to another.
It is not uncommon for disabled people to receive Centrelink payments and have a TPD entitlement. An experienced lawyer can help you understand your TPD cover and how it may impact your benefits.
TPD and Centrelink: What You Need to Know
When a TPD claim is approved, it is typically paid as a one-time lump sum. Generally, the payment will be added to your super account. If this is the case, your Centrelink payments will NOT be affected.
Assets such as superannuation cover are not included in Centrelink’s income or assets tests, except for those who are of Age Pension age (depending on the year you were born, this is anywhere from 65 years and 6 months to 67 years old). Once you are old enough to qualify for the Age Pension, the money in your super account is deemed an income stream and you may see a change in your Centrelink payments.
Is a TPD Payout Classed as Income?
For those under the Age Pension age, Centrelink does not count superannuation money as an asset or income. This is true even if a TPD payout adds money to the account. Removing money from the account doesn’t affect Centrelink payments, either.
However, Centrelink does identify two activities with superannuation money that can impact payments:
- Depositing the money in a bank account
- Putting the money towards an income stream
Money used for these activities will be included in income and assets tests, and this can affect the payments you receive from Centrelink. Depending on the money in the bank or the payments generated by an income stream, your Disability Support Pension may be reduced or cut off.
Can I Access TPD Money at All If I’m on Centrelink?
If you are a Centrelink client, you do not have to leave the funds from a TPD payout untouched to continue receiving payments. For example, TPD money may be withdrawn from a super account without affecting DSP benefits if it is subsequently spent.
A TPD entitlement provides permanently disabled individuals with crucial financial support, enabling them to pay for:
- Medical care
- Prescription medications
- Medical supplies
- Household bills
- Groceries and household items
- Vehicle maintenance and repairs
- And more
Those with a Total and Permanent Disability often struggle to pay bills before their TPD claim is approved. As such, TPD funds may also be used for debts and/or to cover legal expenses from their TPD claim.
Bottom line: If you are receiving Centrelink payments, you should not hesitate to find out if you also have a claim for TPD compensation. In most cases, Centrelink benefits remain unchanged when a TPD claim succeeds.
Consult a Specialist Lawyer Today
Overall, questions concerning TPD and Centrelink can be very complicated. We strongly urge anyone who is receiving Centrelink payments and has TPD cover to seek legal counsel as soon as possible—ideally, before lodging a TPD claim.
TPD Compensation Lawyers are focussed solely on protecting the rights of those with a Total and Permanent Disability. We have an in-depth understanding of the TPD claims process, as well as how the entitlement may affect benefits from Centrelink and other sources. Our TPD lawyers handle all aspects of your claim, from preparing the initial application to ensuring that you receive the maximum payout to counselling you on financial activities that may impact your income support.