Can I Get TPD and DSP Payments?

As a rule, TPD payments are made only once to a person with a Total and Permanent Disability. The payout comes from superannuation and/or other insurance cover. Meanwhile, DSP payments are made by Centrelink to individuals who qualify for Disability Support Pension.

You may qualify for a Total and Permanent Disability entitlement as well as DSP payments. A knowledgeable TPD claims lawyer can evaluate your eligibility for both types of benefits.

Get expert insights on TPD payments and how DSP payments may be affected. Call TPD Compensation Lawyers at 03 9966 7188 today for a FREE consultation. We serve clients in Melbourne and throughout Victoria.

Does TPD Payout Affect DSP?

We’ve written before about the potential effects of a TPD payout on Centrelink benefits. The bottom line is that DSP payments generally remain unchanged when you receive TPD compensation. However, there are several exceptions:

• You turn 67 years old. This is the threshold for the Age Pension. Once you are eligible for Age Pension, the money in your superannuation account is treated as income. Disability Support Pension payments may be reduced or terminated if your super balance is high due to a TPD payout.
• You put some or all your TPD money in the bank. Funds that are withdrawn from super and deposited into a checking or savings account are subject to Centrelink’s income test. Adding this money to your bank account may impact DSP payments.
• You create an income stream. Regular payments from a superfund or other account are considered income streams. If you receive a TPD payout and elect to receive payments from super, the payments you receive from DSP may be reduced.

It is vital to understand the effects of a TPD entitlement on any other disability benefits you are receiving. A TPD claims lawyer can assess your eligibility for Total and Permanent Disability, while a financial adviser can determine how TPD payments may affect your right to the Disability Support Pension.

Can You Claim Both TPD and DSP Payments?

There is no law or rule that prevents you from receiving payments from DSP as well as a Total and Permanent Disability benefit. It all comes down to eligibility.

TPD Eligibility

• Criteria: You meet the insurer’s definition of Total and Permanent Disability. There are several different types of cover:
  • ‘Any Occupation’, where disability is defined by your inability to work generally.
  • ‘Own Occupation’, where you are considered disabled if you can’t work in your most recent job.
  • ‘Activities of Daily Living’, where disability is defined in light of the ability to perform daily activities.
• Waiting period: Most TPD insurance carriers require you to be 100% unable to work for a period of 3–6 months before applying.
• Financial conditions: N/A; eligibility for TPD is not based on financial need.

A Total and Permanent Disability entitlement is generally paid as a one-off lump payout. If you have TPD cover through superannuation insurance, the payout is added to your superfund.

DSP Eligibility

• Criteria: You need to meet several requirements to qualify for Disability Support Pension. These include both non-medical rules and medical rules.
  • Non-medical rules you will need to satisfy include:
    • You are between the ages of 16 and 67 (payments aren’t made until age 16, but a claim can be started up to 3 months prior to your 16th birthday).
    • You generally need to be an Australian resident for a minimum of 10 years to be eligible for DSP payments.
    • Centrelink uses income and assets tests to determine eligibility for DSP and how much you’ll get in payments.
  • Medical rules for DSP include:
    • You meet the manifest medical rules (a series of conditions that automatically qualify for DSP payments).
      OR
    • You satisfy the general medical rules. The main requirements include a diagnosed, treated, and stabilised condition that (a) lasts over 2 years; (b) prevents you from working a minimum of 15 hours per week; and (c) satisfies the impairment rating used by Centrelink.
• Waiting period: Generally speaking, you are not eligible for DSP unless you have a disabling condition lasting more than 2 years. Exceptions are contained in the manifest medical rules.
• Financial conditions: As mentioned above, Centrelink will perform an income test and assets test to determine whether your financial resources exceed the limits for Disability Support Pension.
  • For a single person, DSP is reduced by $0.50 for every dollar you receive in income over $212 per fortnight.
  • For couples, payments are reduced by $0.50 for every dollar in income over $372 per fortnight.
  • If you are a homeowner, Disability Support Pension is reduced if your assets exceed $314,000 (single) or $470,000 (couple).
  • For non-homeowners, DSP is reduced if your assets total more than $566,000 (single) or $722,000 (couple).

DSP payments are made fortnightly. Payment rates are adjusted twice a year.

As you can see, TPD and DSP use different definitions of disability. They also vary in the length of time you need to wait before applying, whether financial considerations are a factor, and how benefits are paid.

You may be able to claim TPD well before you qualify for Disability Support Pension. Unfortunately, many Aussies don’t realise they have this insurance cover. It is important to consult a lawyer who specialises in TPD payments so you can gain a full understanding of your options for financial assistance and begin the application process.

Get Expert Assistance with TPD and DSP Payments

Living with a disability involves many different challenges. It is easy to feel like there is no support or means of getting out from under the financial burdens you are facing. However, you may qualify for both a Total and Permanent Disability payout and Disability Support Pension.

TPD Compensation Lawyers can help you understand your insurance cover and any additional benefits for which you may be eligible. Our FREE claim check is the best way to get started. TPD Compensation Lawyers serve all of Victoria from our office in Melbourne.

It can be difficult to navigate TPD insurance and Centrelink on your own. With our No Win, No Fee policy, you get experienced legal counsel without incurring costs. You only pay fees if we obtain a favourable result on your behalf.