Understanding the ‘blind pension’

The benefits system, such as Centrelink and the Department of Human Services can be complicated, particularly when navigating the requirements for the blind pension. We are here to help with this process so you can better understand the benefits system and your eligibility. The blind pension refers to either the Disability Support Pension, DSP (Blind) or the Age Pension (Blind).

Income and Assets Tests

Both the DSP (Blind) and Age Pension (Blind) are not subject to income and assets testing and don’t require you to complete the Income and Assets form, with some exemptions, particularly if you receive Rent Assistance which is income tested.

If you have a partner, their income or assets won't affect your payment rates unless they are also claiming an income support payment from Centrelink (such as Newstart or the Age Pension). If your partner is permanently blind as well, they don't need to declare income and assets unless they are also claiming Rent Assistance.

The only other scenario that this might change is if you are single and receiving the full single rate of the DSP (Blind) or Age Pension (Blind) and you enter into a de facto relationship or marriage, your payments will become half of the married rate. It is then your responsibility to inform Centrelink to prevent overpayment.

The Blind Pension and Income Tax

It’s important to know that the DSP (blind) payments are tax-exempt income if you are under the Age Pension age. However, once you reach the Age Pension age, the DSP (Blind) becomes assessable income. It's always a good idea to consult a tax professional when preparing your tax return to ensure you're filling it out correctly for your unique situation and the current rules.

Your eligibility for My Aged Care is considered differently from the Age Pension (Blind) or any other income support payments. However, certain programs within My Aged Care do require an income assessment. If you currently receive Age Pension (Blind) or other income, you may just need to undergo an income assessment to determine the level of subsidy you're entitled to.

Transitioning to the Age Pension (Blind)

If you're receiving the Disability Support Pension (Blind) and reach Age Pension Age, Centrelink will send you a letter asking if you want to switch to the Age Pension (Blind). It's important to note that transferring to the Age Pension (Blind) is optional - the decision is entirely up to you. However, once you switch to the Age Pension (Blind), you won't be able to transfer back to the DSP (Blind).

Eligibility

For the Age Pension (Blind) you need to be at retirement age and have a permanent visual impairment. This means your vision, even with corrective lenses, meets the criteria for this categorisation. You may also qualify if you have other visual defects that, when combined, have the same level of impairment.

Medical Assessment and Evidence

If your medical evidence shows that you have permanent blindness and you are under pension age, you are automatically eligible for the DSP (Blind) program. Your application must be supported by a report from your ophthalmologist or optometrist, which includes information about the diagnosis, treatment, symptoms, functional impact and prognosis.

Similarly to DSP (Blind) you are automatically eligible for the Age Pension (Blind) if you have medical evidence to prove your permanent blindness and of pension age.

Unlike other applicants, you won't have to participate in any additional assessments. Once you qualify as permanently blind, there are no other medical requirements or obligations.

What are the differences between DSP (Blind) and Age Pension (Blind)?

Understanding what you are eligible for can be complicated, so ensure you receive the correct government benefits by checking with Centrelink. Planning for the future is crucial, and it's important to do your research on the various pension options so you’re not out of pocket. Let us assist you in navigating through this process and securing the support you are eligible for.