When Samantha Jenkins checked her myGov account last Wednesday morning, a notification caught her eye that would bring welcome relief: the April 2025 Disability Support Pension (DSP) payment would include a 1720 dollar adjustment that recipients have been anticipating for months.
“I honestly thought they’d delay it again,” said Samantha, who has relied on the DSP since a workplace accident in 2019 left her with permanent spinal injuries. “Every extra dollar makes a difference when you’re counting pennies for medication.”
For the approximately 750,000 Australians who depend on the DSP as their primary source of income, this adjustment represents much more than just a number. It signifies recognition of the increasing cost of living pressures that have disproportionately affected those with disabilities, who often face higher everyday expenses and limited opportunities to supplement their income.
The 1720 dollar payment—which will be distributed as a combination of backpay and ongoing rate increases—comes after sustained advocacy from disability organizations and a comprehensive review of support payment adequacy commissioned by the Department of Social Services.
Breaking Down the 1720 Dollar Adjustment
The headline figure of 1720 dollars can be somewhat misleading without proper context. This amount isn’t a single lump-sum payment, but rather reflects several components that will affect DSP recipients differently depending on their individual circumstances.
Here’s how the 1720 dollar adjustment breaks down:
1. Base Rate Increase: $780 Annually
The core DSP rate will increase by $30 per fortnight ($780 annually), representing approximately 45% of the total adjustment. This permanent increase will be reflected in regular payments starting in April 2025.
2. Backdated Adjustments: $600
The government has acknowledged that the rate increase should have been implemented in January 2025 based on cost of living metrics. To compensate for this delay, recipients will receive approximately $600 in backdated payments covering the January-March 2025 period.
3. Energy Supplement Enhancement: $340 Annually
The energy supplement component will increase by approximately $13 per fortnight ($340 annually) in recognition of rising utility costs that have particularly impacted people with disabilities, many of whom have medical equipment or temperature control requirements that increase their energy usage.
When calculated over a full year, these components combine to create the much-discussed 1720 dollar figure that has been circulating in news reports and government announcements.
“The way they’ve structured this is actually quite sensible,” explained financial counselor Rebecca Thompson, who specializes in supporting clients with disabilities. “By incorporating most of it into the permanent base rate, they’re ensuring ongoing benefit rather than a one-off payment that might provide temporary relief but no long-term security.”
Who Qualifies for the Full 1720 Adjustment?
Not all DSP recipients will receive the full 1720 dollar adjustment. Eligibility for the complete amount depends on several factors:
Full Rate DSP Recipients
Those receiving the maximum DSP rate who have been on the payment continuously since at least January 1, 2025, will qualify for the entire adjustment, including the backdated component.
Partial Rate Recipients
DSP recipients whose payments are reduced due to income or assets testing will receive a proportionally reduced adjustment. For example, someone receiving 75% of the maximum DSP rate would receive approximately 75% of the 1720 dollar adjustment.
Recent Applicants
Those who began receiving DSP after January 1, 2025, will receive the increased base rate going forward but may only receive partial backdated amounts depending on when their payment commenced.
Overseas Recipients
Australian DSP recipients currently residing overseas under permitted circumstances will receive adjustments according to the portability rules that apply to their situation, which may result in either full or partial increases.
Michael Chen, who lives with multiple sclerosis and receives a partial DSP rate due to his partner’s income, has been carefully calculating what the adjustment means for his household.
“Based on my payment rate, I’m expecting about 1290 dollars over the year,” he told me during our conversation at a community support group in Brisbane. “It won’t solve all our problems, but it means I can finally replace my wheelchair batteries without dipping into our emergency fund.”
The Timing: April Payment Schedule Explained
The April 2025 payment schedule has been structured to ensure recipients receive their adjustments in a timely manner while allowing Centrelink systems to implement the complex changes across hundreds of thousands of accounts.
DSP payments will be distributed according to the following schedule:
- April 3-4: Primary DSP payment date for most recipients (includes increased base rate)
- April 10-11: Supplementary payment date for backdated amounts (January-March 2025)
- April 17-18: Energy supplement adjustment payment
Recipients who use the Centrelink Express Plus mobile app should see these payment dates reflected in their upcoming payments section approximately one week before the scheduled deposits.
“The staggered approach helps ensure the system doesn’t crash under the load,” explained former Centrelink IT specialist David Nguyen. “After the payment system failures we saw in 2023, they’ve been much more cautious about implementing large-scale payment changes all at once.”
For planning purposes, DSP recipients should note that the backdated payment will appear as a separate transaction in their bank accounts, while the base rate increase will be incorporated into their regular payment amount moving forward.
The Real-World Impact: Beyond the Numbers
While government announcements focus on dollar figures, the real significance of the 1720 adjustment lies in what it means for people’s daily lives. I spoke with several DSP recipients about how this change will affect them personally.
Medical Expenses
For Janet Williams, a 53-year-old living with rheumatoid arthritis in Adelaide, the adjustment will help cover the increasing gap between Medicare rebates and specialist fees.
“I see my rheumatologist every two months, and the gap payment has gone up by $35 in the past year alone,” she explained. “That might not sound like much to some people, but it’s huge when you’re on a fixed income. This increase means I won’t have to choose between proper medical care and other essentials.”
Housing Security
In Melbourne, where rental prices have soared, 41-year-old Mark Stevens uses his DSP to cover a modest one-bedroom apartment. The rental increases have steadily eroded his budget for other necessities.
“My rent has gone up $50 per fortnight in the past year, which basically wiped out my food budget,” he said. “I’ve been relying on food relief, which is humiliating after working my whole life before my accident. The payment increase won’t completely solve it, but it gives me some breathing room.”
Essential Equipment
The costs of disability-specific equipment and consumables have risen particularly sharply, affected by supply chain issues and increased demand. Emma Cooper, who has cerebral palsy, expressed relief about being able to better afford the items she needs daily.
“My continence products alone cost $240 a month, and that’s not covered by the NDIS because they’re considered ‘everyday items,'” she noted. “The price went up three times last year. This adjustment means I can afford the brand that actually works for me instead of the cheaper ones that cause skin breakdowns.”
Mental Health Benefits
Beyond the tangible financial impact, several recipients mentioned the psychological relief that comes with the adjustment.
“The constant stress of watching prices rise while your income stays fixed is exhausting,” said Peter Donaldson, who receives the DSP for a psychiatric disability. “Even knowing there’s a bit more coming helps reduce that background anxiety that never really goes away when you’re living on the edge financially.”
The Broader Context: How Does 1720 Compare?
To fully understand the significance of the 1720 dollar adjustment, it’s important to place it in the context of historical DSP changes and broader economic factors.
Historical Comparison
The 2025 adjustment represents the largest single increase to the DSP in both dollar and percentage terms since 2009, when a major pension reform package was implemented. During the intervening years, increases have generally been limited to routine indexation based on CPI or the Pensioner and Beneficiary Living Cost Index (PBLCI), typically resulting in adjustments of 0.5-1.5% per occasion.
Inflation Context
While the 1720 dollar annual adjustment appears substantial at first glance, when viewed against cumulative inflation since 2020, it essentially restores purchasing power rather than representing a real increase in living standards.
Australian Bureau of Statistics data indicates that since January 2020, the cost of basic household goods and services has increased by approximately 19.8%, with even higher increases in categories that disproportionately affect people with disabilities, such as healthcare (24.3%) and transportation (26.7%).
“What we’re seeing isn’t really an increase in real terms,” explained economist Dr. Helena Wright from the Australian National University. “It’s more accurately described as catching up after several years where inflation outpaced indexation, leaving DSP recipients progressively worse off in real terms.”
International Comparison
When compared internationally, even with the 1720 dollar adjustment, Australia’s DSP remains in the middle range of disability support payments among OECD countries when measured as a percentage of average wages.
Countries like Denmark, Norway, and Switzerland provide disability supports that replace a higher percentage of previous earnings, while nations such as the United States and the United Kingdom offer less generous benefits relative to average wages.
Navigating the System: Practical Advice for Recipients
For those receiving the DSP, maximizing the benefit of the 1720 dollar adjustment requires understanding how to effectively interact with the system. Based on interviews with financial counselors and disability advocates, here are some practical tips:
1. Verify Your Payment Details
Before April, check that your contact information and bank details are up to date in your myGov account. Incorrect details could delay your payments or result in missing notifications about the changes.
“It sounds basic, but I see people miss payments all the time because they changed banks or moved and forgot to update Centrelink,” said financial counselor Rebecca Thompson. “Take five minutes to check everything is current.”
2. Understand How the Adjustment Affects Your Obligations
The increased payment does not change reporting obligations or eligibility requirements. If you have income reporting requirements due to part-time work, these remain unchanged.
However, if you’re close to an income or assets threshold, the adjustment could affect your overall financial planning. Consider consulting a financial counselor if you’re in this situation.
3. Be Aware of Flow-On Effects
Changes to your base DSP rate may affect other concessions or payments you receive, such as rent assistance, pharmaceutical benefits, or state government concessions.
“Some concessions are tied to your status as a DSP recipient rather than the amount you receive, but others may be means-tested independently,” explained disability advocate Michael Chen. “Check with each provider of concessions or supplementary benefits to understand if any adjustments are needed.”
4. Plan for the Backdated Payment
The backdated component (approximately $600) will arrive as a lump sum. Financial experts recommend having a plan for this money before it arrives.
“Lump sums can disappear quickly if you don’t have a plan,” said financial counselor Jessica Martinez. “Consider allocating it to specific needs—perhaps catching up on bills, necessary medical expenses, or essential household repairs you’ve been postponing.”
5. Keep Documentation
Save screenshots or printouts of all payment notices and adjustments. If questions arise later about whether you received the correct amount, having your own records will be invaluable.
Looking Forward: What’s Next After the 1720 Adjustment?
While the April 2025 adjustment brings welcome relief, disability advocates emphasize that it represents a catching-up rather than a structural reform to how the DSP is calculated and administered.
The Review Process
The government has committed to a more responsive review process moving forward, with annual adequacy assessments rather than relying solely on automatic indexation. This may result in more timely adjustments when economic conditions change rapidly.
“The lesson from the past few years is that the traditional indexation models don’t work well during periods of volatile inflation,” noted Disability Rights Commissioner Eliza Hammond. “The new framework should be more responsive to real-world conditions.”
Structural Reform Proposals
More fundamental reforms to the DSP remain under consideration, including:
- Revising the impairment tables used to assess eligibility, which disability groups argue do not adequately reflect many modern medical conditions
- Simplifying the application process, which currently takes an average of 4.2 months to complete
- Addressing the distinction between the DSP and the NDIS, which continues to create confusion and gaps in support
- Examining the impact of the partner income test, which can leave people with disabilities financially dependent on their partners
“The 1720 dollar adjustment addresses the immediate financial pressure,” said disability policy researcher Dr. Amanda Chan. “But we still need to confront the structural issues that make the DSP difficult to access and insufficiently responsive to the actual costs of disability.”
A Step in the Right Direction
The April 2025 adjustment of 1720 dollars annually represents a significant financial relief for hundreds of thousands of Australians living with disabilities. While it doesn’t solve all the challenges they face, it acknowledges the real financial pressures that have accumulated over years of rising costs.
For recipients like Samantha Jenkins, who we met at the beginning of this article, the adjustment means slightly less financial stress and a bit more dignity in managing day-to-day life.
“People think living on the DSP is some kind of easy ride,” she reflected as we concluded our conversation. “But the reality is constant financial juggling and difficult choices. This adjustment doesn’t make me wealthy—it just makes those daily choices a little less impossible.”
As April approaches, DSP recipients should prepare for the implementation of these changes by verifying their information, understanding the payment schedule, and planning for how to best utilize the adjustment to improve their financial security and quality of life.
The 1720 dollar figure may be just a number in budget papers and press releases, but for those who depend on the DSP, it represents something far more meaningful: recognition of their challenges and a step toward a more adequate support system that reflects the true cost of living with a disability in Australia.
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