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 this 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 769,000 people aged 16 and over received the DSP at March 2023. Of these, the vast majority (84%, or 645,000) were aged 16–64 (DSS 2023a).

The DSP is one of Australia’s most prevalent income support payments for people of working age, the second largest payment type for this age group after unemployment benefits (DSS 2023a). In March 2023, DSP recipients accounted for nearly 3 in 10 (29%) of all income support payment recipients aged 16–64 (DSS 2023a).

About 1 in 25 Australians receive DSP: in June 2022, 3.7% of Australian population aged 16 and over was in receipt of DSP, as were 3.9% of people aged 16–64 (DSS 2023a, ABS 2023).

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 3.7% from 2001 to 2022 (June). From about 623,000 in 2001 the number reached a peak of around 802,000 in 2012 (29% increase), then steadily declined to 646,000 in 2022 (19% decrease between 2012 and 2022).

This trend varied by sex, with a much more pronounced growth in the number of female DSP recipients between 2001 and 2012 compared with males. Between 2001 and 2022:

• the number of female DSP recipients
  • increased by 60% from 232,000 in 2001 to 373,000 in 2012
  • decreased by 20% from 373,000 in 2012 to 297,000 in 2022

• the number of male DSP recipients

• increased by 9.8% from 391,000 in 2001 to 429,000 in 2012
• decreased by 19% from 429,000 in 2012 to 349,000 in 2022

The trend also varied by age (faster pre-2012 growth in the 16–24 age group). For example:

• the number of DSP recipients aged 16–24
  • increased by 41% from 39,600 in 2001 to 55,900 in 2014
  • decreased by 11% from 55,900 in 2014 to 49,700 in 2022
• the number of DSP recipients aged 25–49
  • increased by 24% from 247,000 in 2001 to 307,000 in 2012
  • decreased by 19% from 307,000 in 2012 to 249,000 in 2022
• the number of DSP recipients aged 50–64
  • increased by 31% from 336,000 in 2001 to 440,000 in 2012
  • decreased by 21% from 440,000 in 2012 to 347,000 in 2022.

Proportion of the Australian population

While the number of the DSP recipients increased between 2001 and 2022 (June), the proportion of DSP recipients in the Australian population aged 16–64 remained relatively stable over this period, fluctuating between 4.9% (or 623,000) in 2001 and 5.4% (or 802,000) in 2012 and then decreasing to 3.9% (or 646,000) in 2022 (DSS 2023a).

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 4.2% (349,000) in 2022.
• 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 3.6% (or 297,000) in 2022 (Figure SUPPORT.1).

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

Figure SUPPORT.1: Proportion of population aged 16–64 receiving DSP, by year and sex, 2001–2022

Notes:

1. Percentages have been calculated using the estimated Australian population in that year, derived from ABS population data as the denominator.
2. DSP data as at 24 June 2022.
3. Data may differ from official statistics on income support payments and recipients, due to differences in methodology and/or data source.

Source data tables: Data tables – Income support. View data tables

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 dropped 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. After 2020, the proportion of DSP recipients in the income support population aged 16–64 gradually increased, almost reaching the pre-COVID level in 2023 (29% or 645,000 in March 2023) (DSS 2023a).

The female income support recipients aged 16–64 are less likely to receive DSP than males (Figure SUPPORT.2), however, consistent with the increase in numbers of female DSP recipients between 2001 and 2012, the proportion of DSP recipients in the total income support population aged 16–64 has increased at a faster rate 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. It dropped to 18% (or 305,000) in 2020 before increasing to 23% (or 296,000) in 2023.
• The proportion of male income support recipients on DSP increased between 2001 and 2008, from 34% (or 391,000) in 2001 to 45% (or 405,000) in 2008. By 2019, this declined to 39% (358,000), dropping to 25% (or 355,000) in 2020 and then increasing to 36% (348,000) in March 2023 (Figure SUPPORT.2).

The rapid growth in female income support recipients receiving DSP from 2001 to 2014 was largely driven by the mature age population (aged 50–64), with the proportion of females on income support receiving DSP more than doubling in this age group from 22% (or 117,000) in 2001 to 48% (or 218,000) in 2014, before falling to 40% (or 170,000) in March 2023. This compares with a smaller increase for males aged 50–64, from 62% (or 220,000) in 2001 to 71% (or 220,000) in 2008, followed by a sizeable decrease to 51% (or 174,000) in 2023.

These differing rates of change have resulted in the gender gap for the 50–64 age group converging over the last 22 years. In 2001, the proportion of male income support recipients aged 50–64 receiving DSP was almost 3 times that for females, but by 2023, it fell to 1.3 times as high (Figure SUPPORT.2).

These trends are 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.

Figure SUPPORT.2: Proportion of income support population aged 16–64 receiving DSP, by sex and age group, 2001–2023

Notes:

1. Data for 2023 are as at 31 March 2023.
2. Data may differ from official statistics on income support payments and recipients, due to differences in methodology and/or data source.

Source data tables: Data tables – Income support. View data tables

Characteristics of DSP recipients

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

Demographic characteristics

Males are more likely to receive DSP than females, and so are people in the older age groups in comparison with those who are younger. In June 2022, 4.3% of all males in Australia aged 16–64 were receiving DSP (or 355,000 people), compared with 3.7% (or 305,000) of females. In terms of age groups, 7.8% (or 356,000) of people aged 50–64 received DSP, compared with 2.9% (or 256,000) of those aged 25–49 and 1.6% (or 47,800) of those aged 16–24 (DSS 2023a).

Looking at the age breakdown of the DSP recipients aged 16–64, more than half are aged 50–64 (at March 2023):

• 53% (or 344,000) are aged 50–64
• 39% (or 249,000) are aged 25–49
• 8.0% (or 51,600) are aged 16–24 (Figure SUPPORT.3, DSS 2023a).

Female DSP recipients are more likely to be in the older age group than males (at March 2023):

• around 3 in 5 (57% or 170,000) female DSP recipients are aged 50–64, compared with 50% (or 174,000) of males
• 36% (or 107,000) of female DSP recipients are aged 25–49, compared with 41% (or 142,000) of males
• 6.5% (or 19,200) of female DSP recipients are aged 16–24, compared with 9.3% (or 32,300) of males (Figure SUPPORT.3).

Eight in 10 (82% or 532,000) DSP recipients aged 16–64 were single (at March 2023):

• 84% (or 292,000) of males
• 81% (or 239,000) of females (Figure SUPPORT.3).

One in 12 (8.7% or 56,000) DSP recipients aged 16–64 in March 2023 were Aboriginal and Torres Strait Islander (First Nations) people (Figure SUPPORT.3). The proportion of First Nations people in the total number of DSP recipients aged 16–64 is about the same for males (8.6% or 30,100) and females (8.8% or 25,900).

The proportion of DSP recipients who are First Nations people (8.7% in March 2023) is higher than the proportion of the First Nations people in the Australian population aged 16–64 (3.3% as at 30 June 2022). First Nations people are more likely to receive DSP than non-Indigenous Australians: in June 2022, 10% (or 54,100) of First Nations people aged 16–64 received DSP, compared with 3.7% (or 592,000) of non-Indigenous Australians.

For more information about income and finance of First Nations Australians, see Income and finance of First Nations people (AIHW 2023b).

Figure SUPPORT.3: Characteristics of DSP recipients aged 16–64, by sex, 31 March 2023

Notes:

1. Remoteness data excludes 1,185 females and 1,535 males with missing remoteness information.
2. Data may differ from official statistics on income support payments and recipients, due to differences in methodology and/or data source.

Source data tables: Data tables – Income support. View data tables

Primary medical condition

The most common primary medical conditions of DSP recipients aged 16–64 at June 2023 were:

• psychological or psychiatric conditions (40% or 257,000)
• intellectual or learning conditions (17% or 112,000)
• musculoskeletal and connective tissue conditions (14% or 92,300) (Figure SUPPORT.4).

Figure SUPPORT.4: Primary medical conditions of DSP recipients aged 16–64, by age group and sex, June 2023

Notes:

1. Data on the medical conditions of DSP recipients is recorded by Primary Medical Condition. There are 21 Primary Medical Condition classification groups that each cover a number of individual medical conditions. The medical condition with the highest impairment rating determines which primary medical condition a recipient is recorded under.
2. Data may differ from official statistics on income support payments and recipients, due to differences in methodology and/or data source.

Source data tables: Data tables – Income support. View data tables

The most common primary medical conditions vary by age, with those in the younger age groups more likely to have psychological or psychiatric condition, or intellectual or learning condition recorded as their primary medical condition (Figure SUPPORT.4). For DSP recipients:

• aged 16–24

• 2 in 5 (42% or 21,800) have a psychological or psychiatric condition recorded as their primary medical condition
• 2 in 5 (40% or 21,000) have an intellectual or learning primary condition
• 1 in 21 (4.7% or 2,400) have a condition of the nervous system as their primary condition

• aged 25–54

• 2 in 5 (44% or 151,000) have a psychological or psychiatric primary condition
• 1 in 5 (22% or 74,600) have an intellectual or learning primary condition
• 1 in 11 (8.7% or 29,700) have a musculoskeletal or connective tissue primary condition

• aged 55–64

• 1 in 3 (34% or 84,100) have a psychological or psychiatric primary condition
• 1 in 4 (25% or 62,200) have a musculoskeletal or connective tissue primary condition
• 1 in 16 (6.4% or 16,100) have an intellectual or learning primary condition (Figure SUPPORT.4).

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

• Male DSP recipients aged 16–64 are more likely than females to have an intellectual or learning condition as their primary medical condition (19% or 65,700, compared with 16% or 45,900).
• Male DSP recipients aged 16–64 are more likely to have a psychological or psychiatric primary medical condition than females (41% or 114,000, and 39% or 114,000, respectively). This is especially the case for the 16–24 age group, where 45% (or 14,600) of male recipients have this type of primary condition, compared with 37% (or 7,200) of females. However, in the 55–64 age group males are less likely (32% or 40,200) to have this type of primary condition than females (35% or 43,900) (Figure SUPPORT.4).

Payment rate and earning an income while receiving DSP

The amount of income support payment (also known as payment rate) received by an individual depends on their circumstances, living conditions, income, and assets. Income support recipients are required to report earnings from all sources. Those who have income (such as from work, investments, or superannuation) and/or substantial assets over the threshold amounts may have their benefit payments reduced, resulting in a part‑rate payment.

At March 2023:

• 1 in 8 (12% or 77,600) DSP recipients aged 16–64 received a part-rate payment. This was similar for males (11% or 39,900) and females (11% or 37,700).
• 1 in 12 (8.0% or 51,400) declared earnings. This was similar for males (8.2% or 28,500) and females (7.7% or 51,400) (DSS 2023a).

Duration on DSP and income support

Most DSP recipients stay on the DSP for several years. At March 2023, of DSP recipients aged 16–64:

• more than 3 in 4 (76% or 490,000) had been on DSP for at least 5 years
• 3 in 5 (60% or 387,000) for 10 or more years (DSS 2023a).

People receiving DSP also tend to stay longer on income support in general, in contrast with recipients of other payments for people below the Age Pension age. At June 2023:

• Almost 9 in 10 (86% or 659,500) DSP recipients had been receiving income support for at least 5 years. In comparison, fewer than 2 in 5 (38% or 303,800) JobSeeker recipients had been receiving income support for 5 years or more.
• Around 1 in 10 (11% or 88,400) DSP recipients had been on income support between one and 5 years, compared with 1 in 3 (35% or 284,800) JobSeeker Payment recipients.
• Just 2.9% (or 22,600) of DSP recipients had been receiving income support payments for less than one year, compared with 1 in 4 (27% or 219,400) JobSeeker Payment recipients (DSS 2023b).