(Cth) Increase the Disability Support Pension Payment to Above the Poverty Line

Emilie Everingham, Mietta Ackland, Clare Molesworth, Amy O’Brien, Philip Alex & Wei-Hsuan Kai
Jun 24
9 min read

Author: Emilie Everingham, Mietta Ackland, Clare Molesworth, Amy O’Brien, Philip Alex & Wei-Hsuan Kai | Publish date: 24/6/2026

P: In Australia, the maximum single rate of the Disability Support Pension (DSP) is $1,200.90 a fortnight.
S: The Minister for Social Services should amend the indexation rules in Sections 1064-1066 of the Social Security Act 1991 (Cth) to increase the DSP to above the poverty line.
E: People with Disabilities Australia (PWDA): ‘increase income support payments, including the Disability Support Pension (DSP) … to above the poverty line’.

Problem Identification:

Sections 1064-1066 of the Social Security Act 1991 (Cth) establish a framework for calculating the DSP, taking into account an individual's residence status, assets, income, and other adjustments. However, there is no existing standard that guarantees that the DSP will exceed the poverty line.

As stated by Jenny Karavolos, Co-Chair of the Autism Australia Alliance, this means that ‘income support systems trap people with disability in poverty’. According to Services Australia, the latest maximum DSP payment rate is $1,200.90 per fortnight. According to ABS figures, this is below the poverty line of 50% of the median income (i.e. $1,436 per fortnight).

Context:

The DSP refers to financial assistance provided to people with ‘physical, intellectual or psychiatric condition[s]’ that are ‘likely to persist for more than 2 years’ and which prevent them from working over 15 hours a week.

In 2025, around 670,000 working-age Australians were receiving the Disability Support Pension, representing 3.8% of people aged 16-64.

Australia has ‘no official definition of poverty’, but experts often use a 50% or 60% median income rate as a ‘relative income-based poverty line’.

Arguments:

The Australian Council of Social Service argued that ‘the costs of disability are not sufficiently reflected in the rate of DSP’. Mitra et al. (2017) argued that ‘individuals with disability hav[e] sizeable extra costs’ due to their disability. The Consumers Health Forum of Australia identified that low-income support ‘can trap people in a cycle of poverty and poor health from which it is extremely difficult to escape’. Olney and Yates (2025) highlighted that the extra costs of a disability are influenced by multidimensional factors (e.g. inadequate or remote housing) and reduced work opportunities, which exacerbate the financial impact of a disability. The National Centre for Social and Economic Modelling reported that DSP recipients ‘are much more likely to experience financial hardship and insecurity’. Disability Discrimination Commissioner Rosemary Kayess contended that failing to reform the DSP 'denies people dignity and respect and entrenches the dehumanising effects of poverty'.

The Senate Inquiry Report into DSP articulated that ‘failing to attend to a person's ill-health will result in greater costs to the health system in the long-term’. Researchers from Monash University’s School of Public Health and Preventive Medicine explained that ‘people receiving DSP benefits … [are] more likely to be hospitalised, are heavy users of healthcare services and have higher self-reported rates of medicine use … compared to wage earners’. Further, the Housing for the Aged Action Group suggested that 'the inadequacy of [DSP] payments … forces them to rely on community services that … are already struggling to meet community needs.’ The Productivity Commission identified that this over-reliance creates ‘direct economic costs’, including ‘the cost of … healthcare, housing and justice services’. PWDA stated that ‘1 in 5 (19 per cent) of people with disability who delay, or do not see a GP, do so because of the cost’. The ABC highlighted how ‘Melissa has a skin condition that requires care and antibiotics that can cost her $150 a fortnight [and] if she can't afford them, she may require overnight stays in hospital, which costs taxpayers potentially thousands of dollars a day.’ Monash researchers ultimately argued that ‘poverty is a barrier to recovery from illness’.

Milner et al. (2020) argued that ‘poor mental health among [DSP recipients] could be a result of financial hardship given the low levels of payment.’ The same study found a larger decline in mental health scores when a person reported both disability and DSP receipt, compared with reporting disability alone.

Advice/Solution Identification:

PWDA has recommended increasing the DSP ‘to above the poverty line so people with disability can afford the cost of living and achieve financial security.’ According to Cassandra Goldie, CEO of the Australian Council of Social Service, raising the DSP payment could provide ‘people with enough to cover essentials, including the extra costs that disability brings’, and ensure that people with disability ‘are treated with the respect and dignity they deserve’. PWDA has stated that increasing the DSP to above the poverty line could ensure people with a disability can ‘avoid preventable health and housing crises, reducing long-term government expenditure on emergency and crisis services’.

Precedent:

If Australia were to enact this reform, it would be world-leading to the best of the author’s knowledge.

Public Support:

People with Disabilities Australia (PWDA)

Broad Support:

Joint media release: 11 disability and social service organisations jointly called on the Australian Government to increase the DSP, expand eligibility, and reform the claims process so people with disability can meet their basic needs.

This list reflects publicly stated positions and should not necessarily be taken as endorsement of this specific brief.

News Coverage:

ABC News - “Pensioner wants compensation after being stripped of support for four years”. This article highlighted the consequences of incorrectly removing a person from the Disability Support Pension, showing how loss of support can create financial hardship and long-term distress for people reliant on income support. By: Nikki Sorbello | 30 April 2026 - Read the article here.
ABC News - “Three big disability issues the next government needs to address”. This article highlighted key disability policy issues facing the next federal government, including the adequacy of the Disability Support Pension and the financial insecurity experienced by people with disability. By: Evan Young and Nas Campanella | 22 April 2025 - Read the article here.
Disability Support Guide - “The shocking cost of rent for Aussies on the Disability Support Pension”. This article highlighted how rising rental costs place significant pressure on people receiving the DSP, leaving many with insufficient income after housing costs. By: Georgie Waters | 2025 - Read the article here.
ABC News - “Government urged to transform Disability Support Pension after its ‘lacklustre’ response to Senate report”. This article highlighted criticism of the Government’s response to the Senate inquiry into the DSP, including calls for the payment to better cover essentials and the extra costs associated with disability. By: Evan Young | 13 November 2024 - Read the article here.

Where to go to learn more:

(2025) 2025 Federal Election Platform | People with Disability Australia - This platform called for income support payments, including the Disability Support Pension, to be increased above the poverty line so people with disability could afford the cost of living and achieve financial security. Find the platform here.
(2022) Purpose, intent and adequacy of the Disability Support Pension | Senate Community Affairs References Committee - This inquiry report examined the purpose, intent and adequacy of the Disability Support Pension and documented concerns about whether the payment allowed people with disability to meet basic living costs and participate fully in society. Find the report here.
(2026) Payment rates for Disability Support Pension | Services Australia - This webpage provided the current DSP payment rate used to demonstrate that the maximum single rate remains below the poverty line. It outlined the fortnightly payment rates and how the DSP is calculated for different recipients. Find the page here.
(2020) The impact of the disability support pension on mental health: evidence from 14 years of an Australian cohort | Milner et al. - This study informed the mental health argument in this brief. It found that receiving the DSP could affect the mental health of people with disability and suggested that poor mental health among recipients may be linked to financial hardship caused by low payment levels. Find the study here.
(2025) The Costs of Living With Disability in Australia | Olney and Yates - This article supported the argument that people with disability face additional and unavoidable costs not captured by ordinary poverty measures. It explained how disability-related deprivation should be included in assessments of poverty and living standards. Find the article here.
(2019) Inequalities in Standards of Living | The National Centre for Social and Economic Modelling (NATSEM) - This report provided evidence on the financial insecurity experienced by households receiving the DSP. It found that households with a member with disability receiving the DSP or Newstart were more likely to experience financial hardship and lower living standards. Find the report here.
Social Security Act 1991 (Cth) - Sections 1064-1066 established the framework for calculating and indexing the Disability Support Pension, including payment rates, income and assets tests, and rate adjustment rules. Find the Act here.

Human Perspective:

Ruby is a 51-year-old Australian woman living with bipolar disorder who relies on the Disability Support Pension as her main source of income. Before her diagnosis, she worked in the public service and remembers having financial security, a stable routine and the ability to eat out when she wanted. Since moving onto the DSP, however, her life has become defined by scarcity. After housing costs, she is left with $331.20 a week. This has meant that she cannot afford her ordinary costs, such as food, reading glasses or emergency expenses. At times, money has been so tight that Ruby has picked mould off food and eaten it anyway. When her dog Jake developed a serious ear infection, the $1,500 vet bill was far beyond what she could afford, leaving her distressed by the thought that she could not relieve his pain without outside help. Although Ruby is grateful to have stable housing and a regular payment, she also wishes that the DSP would allow her the comfort to live safely, respond to emergencies and participate fully in community life.

To protect the anonymity of those involved, this is a fictionalised account drawn from an amalgamation of real-life stories, experiences and testimonials gathered during the research process for this brief. Any resemblance to actual individuals is purely coincidental.

Conflict of interest/acknowledgment statement:

N/A.

Support

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Disclaimers

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Reference list:

Australian Bureau of Statistics. (2026, January 23). Employee earnings and hours, Australia. https://www.abs.gov.au/statistics/labour/earnings-and-working-conditions/employee-earnings-and-hours-australia/may-2025

Australian Council of Social Service. (2021, July 9). Submission to the Senate Community Affairs References Committee inquiry into the purpose, intent and adequacy of the Disability Support Pension. https://www.acoss.org.au/wp-content/uploads/2021/09/ACOSS-DSP-INQUIRY-FINAL.pdf

Australian Institute of Health and Welfare. (2024, July 10). Income and employment support. https://www.aihw.gov.au/mental-health/topic-areas/income-and-employment-support

Consumers Health Forum of Australia. (2019, September). Senate inquiry: Adequacy of Newstart and related payments and alternative mechanisms to determine the level of income support payments in Australia. https://www.aph.gov.au/DocumentStore.ashx?id=d1f2eefc-c074-4874-8589-2c0b6541ae74&subId=669653

Children and Young People with Disability Australia. (2025, April 24). “Enough is enough”: People with disability need economic justice in cost of living crisis. https://cyda.org.au/enough-is-enough-people-with-disability-need-economic-justice-in-cost-of-living-crisis/

Housing for the Aged Action Group. (2021). Purpose, intent and adequacy of the Disability Support Pension 2021. https://www.oldertenants.org.au/sites/default/files/inquiry_into_purpose_intent_and_adequacy_of_the_disability_support_pension.pdf

Kayess, R. (2024) It’s time disability reform became an election commitment. Australian Human Rights Commission. https://humanrights.gov.au/about-us/media-centre/opinion-pieces/opinion-pieces/its-time-disability-reform-became-election-commitment

Li, J., Brown, L., La, H. A., Miranti, R., & Vidyattama, Y. (2019, September). Inequalities in standards of living: evidence for improved income support for people with disability. https://www.afdo.org.au/wp-content/uploads/2019/09/02A-NATSEM-Online-Disability-Report.pdf

Milner, A., Kavanagh, A., McAllister, A., & Aitken, Z. (2020). The impact of the disability support pension on mental health: Evidence from 14 years of an Australian cohort. Australian and New Zealand Journal of Public Health, 44(4), 307–312. https://doi.org/10.1111/1753-6405.13011

Mitra, S., Palmer, M., Kim, H., Mont, D., & Groce, N. (2017). Extra costs of living with a disability: A review and agenda for research. Disability and Health Journal, 10(4), 475-484. https://doi.org/https://doi.org/10.1016/j.dhjo.2017.04.007

Olney, S., & Yates, S. (2025). The Costs of Living with Disability in Australia: Accounting for Variable Disability-Related Deprivation in Poverty Measures. Australian Economic Review, 58(S1), S36–S44. https://doi.org/10.1111/1467-8462.70017

People with Disability Australia. (2025). 2025 Federal Election Platform: Our votes, our future. https://pwd.org.au/wp-content/uploads/2025/03/PWDA_2025-Federal-Election-Platform_FINAL-1.pdf

People with Disability Australia. (2025). 2025 Federal Election Hub. https://pwd.org.au/home/2025-federal-election-hub/

People with Disability Australia. (2023, February). Disability and poverty: Submission to the Senate Community Affairs References Committee inquiry into the extent and nature of poverty in Australia. https://pwd.org.au/wp-content/uploads/2023/02/PWDASB-2023-Extent-and-Nature-of-Poverty.pdf

People with Disability Australia. (2023, February 6). Extent and nature of poverty in Australia. https://pwd.org.au/extent-and-nature-of-poverty-in-australia/

Productivity Commission. (2021, May 6). A brief overview of the mental health inquiry report. https://www.pc.gov.au/media-speeches/speeches/mental-health/

Senate Community Affairs References Committee. (2022). Purpose, intent and adequacy of the Disability Support Pension: Chapter 5 - Adequacy and broader reforms. https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Community_Affairs/DisabilitySupportPensio/Report/section?id=committees%2Freportsen%2F024728%2F77850

Services Australia. (n.d.). Disability Support Pension. Retrieved May 29, 2026, from https://www.servicesaustralia.gov.au/disability-support-pension

Services Australia. (n.d.). Payment rates for Disability Support Pension. Retrieved May 29, 2026 https://www.servicesaustralia.gov.au/payment-rates-for-disability-support-pension?context=22276

Scicluna, K., Thrower, J., & Jericho, G. (2024, June). Ending child poverty in Australia. The Australia Institute. https://apo.org.au/sites/default/files/resource-files/2024-06/apo-nid327363.pdf

Social Security Act 1991 (Cth).

Young, E. (2024, November 13). Government urged to transform Disability Support Pension after its “lacklustre” response to Senate report. ABC News. https://www.abc.net.au/news/2024-11-13/disability-support-pension-centrelink-senate-inquiry-response/104588632

Ziffer, D., & Hutchens, G. (2025, October 28). Is it cheaper to end poverty than to maintain it? Research says yes. ABC News. https://www.abc.net.au/news/2025-10-28/cheaper-to-end-poverty-increase-jobseeker-than-maintain-hardship/105866692