3.6.1.30 Qualification for DSP during Self-employment - 30 Hour Rule

Topic applies to

This topic applies to people who are subject to the 30 hour rule for DSP qualification.

For people who are subject to the 15 hour rule, refer to 3.6.1.32.

Policy reference: SS Guide 3.6.1.10 Qualification for DSP - 30 Hour Rule, 3.6.1.32 Qualification for DSP during Self-employment - 15 Hour Rule

Overview

People who are self-employed may still qualify for DSP if they have an impairment rating of at least 20 points under the Impairment Tables (1.1.I.10) and a CITW (1.1.C.330). Any income earned from self-employment is subject to the pensions income test. With exceptions (e.g. for assessment for RA), the pensions income test is generally not applied to DSP blind.

Policy reference: SS Guide 3.6.1.10 Qualification for DSP - 30 Hour Rule, 3.6.2.100 DSP Assessment of Impairment Ratings, 3.6.2.110 Assessment of Continuing Inability to Work - 30 Hour Rule

Working less than 30 hours per week

A self-employed person who works less than 30 hours per week may qualify for DSP, if their capacity to work 30 hours or more per week is limited solely by their medical condition.

Working 30 hours or more per week

A self-employed person who works 30 or more hours per week may qualify for DSP. The following factors will be considered in determining whether such a person has a CITW:

• whether the person is capable of working in open employment (1.1.O.10) for 30 or more hours per week,
• how closely the business tasks and activities performed by the person compare with work (1.1.W.60) in open employment,
• to what extent the business activities have been adapted to suit the person's disability,
• the nature of the work, the skills required and the hours worked by the person,
• whether the rate being charged for the work is equivalent to or above the relevant minimum wage (1.1.R.133),
• whether support is provided to the person by others in the work environment, and
• the person's level and type of participation in the business.

The level of profitability of the business is not, in itself, a good indicator of whether the activities performed by the person are equivalent to open employment.

Act reference: SSAct section 94(5) Meaning of 'work'

New enterprise incentive scheme

A self-employed person who receives NEIS payment may still qualify for DSP.

For a NEIS recipient to remain qualified for DSP, the person must continue to satisfy the 30 hour rule qualification criteria.

Payments made under NEIS are excluded from the ordinary income test under SSAct section 8(8)(t) and subject to the NEIS provisions under SSAct Part 3.15.

Act reference: SSAct section 8(8) Excluded amounts-general, Part 3.15 New Enterprise Incentive Scheme

Policy reference: SS Guide 3.6.1.10 Qualification for DSP - 30 Hour Rule, 4.3.3.80 Income from New Enterprise Incentive Scheme (NEIS)

_______________________________________________________

Last reviewed: 1 July 2011