24-May-2010

19 May 2010

Job Capacity Assessment Program to be replaced

Subsequent to the 2010–11 Budget announcements, NDS has confirmed that the current Job Capacity Assessment program will cease to operate at the end of the extended contract period (end of June 2011). It will be replaced by a streamlined assessment process, to be conducted by Centrelink with assistance from Commonwealth Rehabilitation Services. The new assessment process will consist of two separate instruments—one for Disability Support Pension (DSP) assessments and one for employment service referrals.

Although Centrelink will complete all referral and income assessments, the policy responsibility for the DSP assessment will rest with FaHCSIA and the referral process policy with DEEWR. In line with current arrangements, assessments will be completed by allied health and health professionals.

From 1 July 2010, people with injury or ill health applying for a temporary exemption from activity tested obligations will be assessed by Centrelink and will no longer be required to undertake a full Job Capacity Assessment.

It is anticipated that these reforms will provide faster support for people with severe disability or illness who are clearly unable to work (ensuring they receive financial support quickly).

The group most affected by these changes will be those deemed as having a potential to work. Although the eligibility for DSP will not change, applicants will now be required to provide sufficient evidence that they are unable to work independently, even with assistance and support. This change will require DSP applicants without severe disability to be referred to Disability Employment Services (DES). A service history with a DES will provide the evidence that the DSP applicant has been unable to obtain employment through alternative options i.e. even with employment assistance. This initiative is designed to help people with disability return to the workforce by focusing on their ability rather than their disability. It is also expected to deliver substantial savings for the Australian taxpayer.

These changes will also be supported by a review of the DSP Impairment Tables, anticipated to be operating by 1 January 2012. A Health Professional Advice Unit will be established within Centrelink, commencing on the 1 July 2010. This unit will provide DSP assessors with independent advice on suitable treatments to help people return to work and medical opinion on additional assessments for borderline claims.

FaHCSIA will consult with stakeholders in developing the improved DES assessment arrangements.