People with disability in Australia

Introduction

People with disability may receive financial assistance to help with activities of daily life. This section looks at income support payments for people with disability, focusing on those aged 16–64 receiving the DSP. The DSP is the main income support payment available specifically to people with disability.

While section focuses on DSP, people with disability may also be eligible for other payments, allowances or supplements, such as Mobility Allowance, government concession cards (which discounts selected goods and services), and more general financial support (such as to assist with study, housing or finding work). For analysis of government payments received by people with disability, see also 'Government payments'.

The size of the DSP population

Around 754,000 people aged 16 and over received the DSP at 26 June 2020 (3.7% of the Australian population in this age group). Of these, the vast majority (88%) were aged 16–64 (660,000 or 4.0% of the Australian population in this age group).

The DSP is one of Australia’s largest income support payments for people of working age. Recipients aged 16–64 account for more than 1 in 5 (21%) of all income support payment recipients aged 16–64, the second largest payment type after unemployment benefits for this age group.

Changes over time in DSP

Changes over time in DSP can be seen in overall numbers and as a proportion of:

• the Australian population
• income support recipients.

Numbers of recipients

Overall, the number of DSP recipients aged 16–64 grew by 7.2% over the 2 decades to 2020. From about 623,000 in 2001 the number reached a peak of around 802,000 in 2012 (29% increase), then steadily declined to 660,000 in 2020 (18% decrease between 2012 and 2020).

This trend varied by sex. For example:

• female DSP recipients
  • increased by 60% from 232,000 in 2001 to 373,000 in 2012
  • decreased by 18% from 373,000 in 2012 to 305,000 in 2020
• male DSP recipients
  • increased by 11% from 391,000 in 2001 to 433,000 in 2011
  • decreased by 18% from 433,000 in 2011 to 355,000 in 2020

The trend also varied by age. For example:

• DSP recipients aged 16–24
  • increased by 41% from 39,600 in 2001 to 55,900 in 2014
  • decreased by 14% from 55,900 in 2014 to 47,800 in 2020
• DSP recipients aged 25–49
  • increased by 24% from 247,000 in 2001 to 307,000 in 2012
  • decreased by 17% from 307,000 in 2012 to 256,000 in 2020
• DSP recipients aged 50–64
  • increased by 31% from 336,000 in 2001 to 440,000 in 2012
  • decreased by 19% from 440,000 in 2012 to 356,000 in 2020.

Proportion of the Australian population

When accounting for population growth, the proportion of the Australian population aged 16–64 receiving DSP remained relatively stable, increasing slightly from 2001 to 2011 (4.9% or 623,000 to 5.4% or 798,000) and then decreasing to 4.0% (or 660,000) in 2020.

This trend differs for males and females:

• The proportion of males aged 16–64 receiving DSP steadily declined from 6.2% (or 391,000) in 2001 to 4.3% (355,000) in 2020.
• The proportion of females aged 16–64 receiving DSP
  • increased from 3.7% (or 232,000) in 2001 to 5.0% (or 373,000) in 2012
  • decreased to 3.7% (or 305,000) in 2020 (Figure SUPPORT.1).

These declines are likely largely a result of changes over this period in how eligibility for DSP was assessed. Further, the large increases in female DSP recipients coincided with increases in the qualifying age for the Age Pension, and closure of some payments. 

Proportion of the income support population

Between 2001 and 2019 there was an overall increase in the proportion of income support recipients aged 16–64 receiving DSP – from 23% (or 623,000) in 2001 to a peak of 32% (or 802,000) in 2012, declining to 30% (or 668,000) in 2019. In 2020, the proportion of DSP recipients decreased to 21% (or 660,000), mainly because of an increase in the number of recipients of other income support payments caused by the impacts of COVID-19.

The rate of increase has been steeper for females than males:

• The proportion of female income support recipients on DSP almost doubled between 2001 and 2012, rising from 14% (or 232,000) in 2001 to 26% (or 373,000) in 2012, before declining to 24% (or 345,000) in 2016 and to 18% (or 305,000) in 2020.
• The proportion of male income support recipients on DSP increased steadily, from 34% (or 391,000) in 2001 to 45% (or 405,000) in 2008, before declining to 39% (or 358,000) in 2019 and 25% (355,000) in 2020.

The rapid growth in female income support recipients receiving DSP from 2001 to 2014 was largely driven by the mature-aged population (aged 50–64), with the proportion of females receiving DSP more than doubling in this age group from 22% (or 117,000) in 2001 to 48% (or 218,000) in 2014. The proportion then declined to 36% (or 177,000) in 2020. This compares with a small increase from 62% (or 220,000) in 2001 for males aged 50–64 to 71% (or 220,000) in 2008 and then a decrease to 43% (or 180,000) in 2020.

These differing rates of increase have resulted in the gender gap converging over the last 20 years. In 2001, the proportion of male income support recipients aged 50–64 receiving DSP was almost 3 times that for females. It reduced to 1.2 times as high in 2020 (Figure SUPPORT.2).

This trend is largely influenced by the consolidation of payments provided to those of mature age. This has particularly affected females and it coincided with decreasing proportions receiving the Age Pension and payments closed to new entrants.

Characteristics of DSP recipients

This section examines the demographic characteristics and income support attributes of DSP recipients aged 16–64.

Age and sex

DSP recipients are typically in older age groups (at 26 June 2020):

• more than half (54% or 356,000) are aged 50–64
• 39% (or 256,000) are aged 25–49
• 7.2% (or 47,800) are aged 16–24.

The proportion of DSP recipients in these age groups varies by sex:

• 3 in 5 (58% or 177,000) female DSP recipients are aged 50–64, compared with 51% (or 180,000) of males
• 36% (or 111,000) of female DSP recipients are aged 25–49, compared with 41% (or 145,000) of males
• 5.7% (or 17,300) of female DSP recipients are aged 16–24, compared with 8.6% (or 30,500) of males.

One in 12 (7.8%, or 356,000) people aged 50–64 receive DSP. People in this age group are 3 to 5 times as likely to receive this payment as those aged 25–49 and 16–24 (2.9% or 256,000 and 1.6% or 47,800 respectively) (Figure SUPPORT.3).

Males aged 16–64 were more likely to receive DSP than females – 4.3% (or 355,000) and 3.7% (or 305,000) respectively.

Relationship (partner) status

Eight in 10 (80% or 529,000) DSP recipients aged 16–64 reported their partner status as single (at 26 June 2020):

• 81% (or 289,000) of males
• 79% (or 240,000) of females (Figure SUPPORT.3).

This proportion decreased with age of the DSP recipient:

• almost all (98% or 46,600) aged 16–24 reported their partner status as single
• 86% (or 220,000) aged 25–49
• 74% (or 262,000) aged 50–64.

Aboriginal and Torres Strait Islander people

At 26 June 2020, 49,900 Aboriginal and Torres Strait Islander people aged 16–64 were receiving DSP. A higher proportion of Indigenous Australians aged 16–64 receive DSP than non-Indigenous Australians:

• 9.7% (or 49,900) of Indigenous Australians aged 16–64 receive DSP, compared with 3.8% (or 610,000) of non-Indigenous Australians.

One in 13 (7.6%) DSP recipients aged 16–64 are Indigenous Australians (Figure SUPPORT.3). The proportion of DSP recipients aged 16–64 who are Indigenous Australians is about the same for males (7.5% or 26,700) and females (7.6% or 23,300).

The proportion of DSP recipients who are Indigenous (7.6%) is higher than the proportion of the total Australian population aged 16–64 who are Indigenous (3.1% or 517,000). For more information about income support for Indigenous Australians, see AIHW (2019).

Primary medical condition

The most common primary medical conditions of DSP recipients aged 16–64 at 26 June 2020 were:

• psychological or psychiatric conditions (37% or 246,000)
• musculoskeletal and connective tissue conditions (18% or 116,000)
• intellectual or learning conditions (17% or 109,000) (Figure SUPPORT.4).

The most common primary medical conditions vary by age. For DSP recipients:

• aged 16–24
  • almost half (48% or 22,800) have intellectual or learning conditions
  • 1 in 3 (34% or 16,200) have psychological or psychiatric conditions
  • 1 in 100 (1.0% or 463) have musculoskeletal and connective tissue conditions
• aged 25–54
  • 1 in 5 (20% or 71,200) have intellectual or learning conditions
  • 2 in 5 (43% or 149,000) have psychological or psychiatric conditions
  • 1 in 10 (11% or 39,200) have musculoskeletal and connective tissue conditions
• aged 55–64
  • 1 in 17 (5.8% or 15,300) have intellectual or learning conditions
  • 3 in 10 (31% or 80,400) have psychological or psychiatric conditions
  • 3 in 10 (29% or 76,000) have musculoskeletal and connective tissue conditions (Figure SUPPORT.4).

The most common primary medical conditions also show some variations by sex:

• Male DSP recipients aged 16–64 are more likely (18% or 64,300) to have intellectual or learning conditions than females (15% or 45,000). However, in the 16–24 age group males are less likely (46% or 14,100) to have these conditions than females (50% or 8,690).
• Male DSP recipients aged 16–64 are more likely (38% or 136,000) to have psychological or psychiatric conditions than females (36% or 110,000). However, in the 55–64 age group males are less likely (29% or 38,000) to have these conditions than females (32% or 42,400) (Figure SUPPORT.4).

Earning an income while receiving DSP

People receiving DSP who report income from work, investments, superannuation and/or substantial assets, may have their benefit payments reduced, resulting in a part‑rate payment.

This income test is designed so that, at low incomes, an individual will not have their benefit payment reduced, but once past a threshold, the payment will decrease with increasing income. Income support recipients are required to report earnings from all sources.

At 26 June 2020:

• 1 in 8 (12% or 80,200) DSP recipients aged 16–64 received a part-rate payment. This was similar for males (12% or 41,800) and females (13% or 38,400).
• 1 in 13 (7.5% or 49,700) declared earnings. This was similar for males (7.9% or 28,200) and females (7.0% or 21,500).

Duration on DSP

Most DSP recipients had been on the DSP for several years. At 26 June 2020:

• more than 4 in 5 (81% or 536,000) DSP recipients aged 16–64 had been on DSP for at least 5 years
• more than half (56% or 373,000) for 10 or more years.

People receiving DSP also tend to be long-term income support recipients:

• 9 in 10 (88% or 663,000) had been receiving income support payments for at least 5 years
• 7 in 10 (70% or 527,000) for 10 or more years.

This contrasts with other income support payments:

• 3 in 5 (58% or 828,000) JobSeeker Payment recipients had been receiving income support payments for less than one year, compared with 2.4% (or 18,200) of DSP recipients
• 1 in 5 (21% or 307,000) JobSeeker Payment recipients had been receiving income support payments for at least 5 years
• 1 in 10 (10% or 145,000) JobSeeker Payment recipients had been receiving income support payments for 10 or more years.  

Movement of DSP recipients through the income support system

Understanding the movement of Disability Support Pension (DSP) recipients between different payment types and on and off income support provides insights into their income support pathways, exits and entries.

To examine the movement of DSP recipients through the income support system, all recipients at June 2009 were tracked through the data to investigate what income support payment (if any) they were receiving 9 years before (2000) or 9 years after (2018). This analysis does not capture all changes, only payments an individual was on at measurement points for each year.

This analysis shows that most DSP recipients aged 16–64 tended to stay on this payment for a long time, with very few moving onto other income support payments or exiting the income support system (Figure SUPPORT.5).

Looking forward to 2018, of DSP recipients aged 16–64 in 2009:

• over half (58%) still received DSP and almost one-quarter (23%) had moved onto the Age Pension
  • for those aged 16–24 and 25–49, most (both 84%) still received DSP
  • for those aged 50–64, 38% still received DSP and 42% had moved onto the Age Pension
• 13% had died by 2018 – increasing with age from 3.1% to 8.7% to 17% across the 3 age groups
• 1% had moved to another income support payment (other than the Age Pension) and 4.2% were not on income support.

Looking back to 2000, of DSP recipients aged 16–64 in 2009:

• 41% had received DSP
• 24% had received another type of income support payment, mainly unemployment payment and parenting payment – 13% and 7.0% respectively
• 35% were not on income support.

Nearly all DSP recipients aged 16–24 in 2009 were too young to qualify for DSP in 2000. Some of the parent(s) or carer(s) of these children may have been receiving Carer Payment.