Deloitte Access Economics have recently published a concept paper comprising ideas and evidence for reform to the Australian Disability Support Pension (DSP). The paper explores how targeted changes to the DSP could reduce the financial risks and disincentives facing recipients who want to work.
Too many people with disability are locked out of employment – 53% of people with a work-limiting disability were employed in 2022, compared to 82% of the broader population. Using national datasets and leading economic frameworks, the paper analyses how DSP taper rates, suspension rules and administrative complexity affect employment decisions and labour force participation.