Centrelink rules that denied a far north Queensland shark attack victim the disability support pension (DSP) are reasonable, according to the man's federal MP Warren Entsch.

Cairns spearfisherman Glenn Dickson has spent the last three months recovering after having his leg amputated in February after he was bitten by a bull shark near Hinchinbrook Island.

He applied to Centrelink for the DSP but the Department of Human Services rejected his claim on the grounds he should first complete rehabilitation and get a prosthetic leg.

The DSP is defined as for people with "a permanent physical, intellectual or psychiatric condition that stops you from working".



Member for Leichardt Mr Entsch said he believed Mr Dickson was getting enough help through the lower-payment allowance for jobseekers, Newstart.

"He has been knocked back on disability support and that's understandable. We can't force them to overturn a decision that's made," he said.

Glenn Dickson with partner Jessie-Lee months before the shark attack. ( Supplied: Glenn Dickson )

"The [job-seeking] requirements [for Newstart] have been waived to allow him to focus 100 per cent on his recovery.

"What needs to happen after the accident is he needs to fully recover and then see what he's able to do. I mean people with prosthesis can sometimes lead a full and active life."

The decision to reject the claim has prompted outcry from Mr Dickson's local state minister and disability advocate, Rob Pyne.

He believes Centrelink is becoming "increasingly punitive" in its approach to approving welfare payments for people with disabilities.

"Unfortunately it is becoming harder and harder because of the very strict requirements Centrelink are putting on it," he said.

Review of case 'handled appropriately'

Department of Human Services general manger Hank Jongen confirmed that a review had shown Mr Dickson's matter was handled "appropriately and in accordance with legislation".

Warren Entsch supports the decision to reject Mr Dickson's application for the DSP. ( ABC News )

According to legislation, a person needs to prove that treatment will not result in significant functional improvement within two years to be eligible for the DSP, he said.

"For people who have had an amputation, it is reasonable to expect that having a prosthesis fitted and participating in rehabilitation will result in significant improvements in the next two years," Mr Jongen said.

Mr Dickson said the Centrelink decision "makes no real sense" to him and he was only looking for welfare support while he recuperated.

"The shark hit my leg like a chainsaw," he said.

"It swallowed my whole leg and had chomped and shredded all around my upper thigh, completely to the bone.

"We're not looking to get a disability pension for when I'm able to work again. We're just looking for help whilst I'm trying to get there."

Mr Entsch said he had offered Mr Dickson help to reapply to Centrelink, once he gathered more supporting documents that could help his case.

A crowdfunding campaign set up for Mr Dickson after the shark attack has so far raised more than $50,000.