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Outbyte Driver Updater FREEFix the driver behind crashes, sound loss and screen glitchesFind Drivers →Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →Winning the lottery can affect a Disability Support Pension (DSP), but Frank Kemmler’s reported experience does not establish that every prize automatically stops a pension. PerthNow reported in December 2023 that Kemmler’s $60,000 win was paid as $5,000 a month and that Centrelink treated those instalments as income above the threshold for his DSP. Services Australia’s general guidance distinguishes a one-off lottery lump sum from the way money may later be treated under income and assets tests.
What happened to Frank Kemmler’s pension?
PerthNow reporter Peta Rasdien reported on 30 December 2023 that Kemmler, described as a pensioner, realized he had won $60,000. The story said the prize was to be paid in monthly instalments of $5,000. Kemmler declared the winnings to Centrelink, which PerthNow reported treated the monthly payments as income above the applicable threshold and stopped his Disability Support Pension. The report does not include his Centrelink file or establish the precise legal basis for that decision. PerthNow’s account
PerthNow also said Kemmler then had to pay full price for GP appointments and medication that he had previously received with his pension. At the time the story appeared, the winnings were gone and he was trying to have his DSP restarted; he had been told reinstatement could take up to six months. The sources do not establish what happened to his pension after publication.
Kemmler described the initial excitement to PerthNow, which quoted his A Current Affair interview: “It was certainly a nice feeling when I checked me numbers,” and “I rang the family. I said, ‘pack up, we’re going on a holiday!’” He later summed up the downside: “You think you win on the one hand, but they take it away with the other hand.”
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Can winning the lottery affect your DSP?
Yes, it can have consequences, but the effect depends on how the prize is paid, how it is treated under the rules, and the recipient’s circumstances. Services Australia says DSP rates depend on assessable income and assets. Its guidance describes a one-off lottery win as a lump sum and explains that what someone does with that money can affect a payment indirectly through the income or assets test. Services Australia: Disability Support Pension Services Australia: lump sums and payments
That general explanation is not the same as confirming Centrelink’s calculation in Kemmler’s case. PerthNow described a $5,000 monthly payout treated as income, while Services Australia’s guidance discusses a one-off lottery win as a lump sum. The available accounts do not clarify the prize’s legal payment structure or how Centrelink assessed it in his individual file.
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Why a lump sum and monthly instalments can matter differently
Income test
Income-test treatment concerns amounts counted as income when working out a payment. PerthNow reported that Centrelink counted Kemmler’s monthly $5,000 instalments as income above the threshold for his DSP. That is a reported fact about his case, not proof that all lottery instalments receive identical treatment.
Assets test
A lump sum may also matter because of what the recipient keeps or buys with it. Services Australia says some assets are exempt, such as a principal home, while countable assets can affect payment. Financial assets may also be subject to deeming rules, under which income is assessed according to assumed returns rather than only the interest actually earned. The result depends on the asset and the person’s situation; the general guidance does not determine Kemmler’s case outcome. Services Australia’s DSP guidance Services Australia’s lump-sum guidance
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What this case does—and does not—show
- It shows one reported experience: PerthNow said Kemmler declared a $60,000 prize paid at $5,000 a month, after which Centrelink stopped his DSP on the basis that the payments exceeded the income threshold.
- It does not show that every lottery win cancels DSP: the official guidance describes means testing and the possible indirect effects of how a lump sum is treated; it does not establish an automatic cancellation rule for every prize.
- It does not establish the later result: the available report described Kemmler as seeking reinstatement in December 2023, and no later status is confirmed here.
- It is not individualized benefits advice: the case-specific decision rationale, any review or appeal, and the precise treatment of the prize are not established by the published account and general guidance.
Kemmler told A Current Affair, as quoted by PerthNow, “If I’d known then what I know now, I would’ve given the win to my daughter and kept the pension for myself.” He also said, “These people that are buying these (lottery) tickets, there’s no warning anywhere … to say that you’re going to lose your pension.“ Those remarks convey his experience and view; they are not an official statement of Centrelink policy.
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