If you’re providing full-time care for someone with a disability, chronic illness, or who is frail aged, you shouldn’t have to worry about financial stress on top of your caring responsibilities. The Australian Government’s Carer Payment recognizes the vital role you play and provides income support to help you manage.
This payment can be life-changing for families dealing with serious health conditions. Currently, over 304,500 Australians receive this support, with 71% being women who have stepped back from their careers to provide care.
What is Carer Payment?
Carer Payment is a fortnightly income support payment designed specifically for people who provide constant care to someone with disability, a medical condition, or who is frail aged. Unlike other welfare payments, this recognizes that your caring role prevents you from working full-time.
The payment is equivalent to the Age Pension rate, acknowledging that caring is a full-time job that deserves proper financial recognition. It’s not just pocket money – it’s designed to replace the income you can’t earn because of your caring responsibilities.
Recent Changes in 2025
From March 20, 2025, significant improvements came into effect. The most important change allows you to work up to 100 hours over a 4-week period instead of the previous 25 hours per week limit. This gives you much more flexibility to balance work and caring.
Travel time is no longer counted in your work hours, which particularly helps carers in regional areas. There are also no limits on study, training, or volunteering activities.
Who Qualifies for Carer Payment?
Your Eligibility Requirements
To receive Carer Payment, you must:
- Be an Australian resident currently living in Australia
- Provide constant care equivalent to a normal working day
- Care for someone for at least 6 months (or for someone at end of life)
- Meet income and asset tests
- Be unable to work full-time due to your caring responsibilities
The “constant care” requirement means you’re providing daily care that stops you from working full-time. You don’t have to live with the person you care for, but you need to be within reasonable distance and provide regular, ongoing support.
Requirements for the Person You Care For
The person receiving your care must also:
- Be an Australian resident
- Have a disability, medical condition, or be frail aged
- Pass a care needs assessment
- Meet specific income and asset limits if they don’t receive government payments
If the care recipient doesn’t receive a pension or benefit, their income must be less than $140,795 per year before tax, and their assets must be worth less than $868,500 (excluding their home).
How Much Can You Receive?
The Carer Payment rates depend on your relationship status and circumstances:
| Payment Type | Amount per Fortnight |
|---|---|
| Single person | Up to $1,116.30 |
| Each member of a couple | Up to $769.30 |
| Couple separated due to illness | Up to $1,116.30 |
These amounts include the basic pension, Maximum Pension Supplement, and Energy Supplement. The exact amount you receive depends on your income and assets through means testing.
Income Test Thresholds
Your payments start reducing once your fortnightly income exceeds:
- Singles: $212 per fortnight
- Couples: $372 per fortnight (combined)
For every dollar over these thresholds, your payment reduces by 50 cents.
Asset Test Limits
Your assets (excluding your family home) must be below:
- Singles: $301,750 (homeowner) or $543,750 (non-homeowner)
- Couples: $451,500 (homeowner) or $693,500 (non-homeowner)
Additional Benefits and Support
Carer Allowance
You might also qualify for Carer Allowance – a separate supplementary payment of $159.30 per fortnight. This payment recognizes the extra daily care you provide and isn’t income-tested (though there’s a $250,000 annual income limit for eligibility).
The great news is you can receive both Carer Payment and Carer Allowance if you qualify for each.
Automatic Annual Supplement
If you receive Carer Payment on July 1 each year, you’ll automatically receive the Carer Supplement – an annual lump sum payment to help with caring costs.
Concession Cards
Carer Payment recipients receive a Pensioner Concession Card, providing discounts on:
- Prescription medications
- Medical services
- Public transport
- Utilities
- Council rates
How to Apply for Carer Payment
Before You Start
Use the online eligibility checker on the Services Australia website. This saves time by confirming you meet basic requirements before starting your application.
Documents You’ll Need
Gather these documents before applying:
- Identity documents for you and the care recipient
- Medical reports confirming the person’s condition
- Income and asset information
- Bank account details
- Residential information
Application Process
Step 1: Log into your myGov account and access Centrelink online
Step 2: Select “Make a Claim” and choose Carer Payment
Step 3: Complete the online form with details about yourself and the person you care for
Step 4: Upload required documents or post them to Services Australia
Step 5: Wait for assessment – this typically takes 2-8 weeks
What Happens During Assessment
Services Australia will:
- Review your application and supporting documents
- May contact you for additional information
- Assess the care recipient’s needs through medical evidence
- Determine your payment rate based on income and assets
Maintaining Your Payment
Reporting Requirements
You must report changes within 14 days, including:
- Changes to your income or assets
- Changes to the care recipient’s condition
- If you take time away from caring
- Changes to your living arrangements
Working While Receiving Payment
Under the 2025 changes, you can work up to 100 hours over 4 weeks without losing your payment. Any income you earn is still assessed and may reduce your payment amount.
Respite Care
You can take up to 63 days of respite per calendar year while keeping your Carer Payment. This includes emergency respite and planned breaks from caring.
Frequently Asked Questions
Q. Can I receive both Carer Payment and Carer Allowance?
A. Yes, if you meet the eligibility criteria for both payments, you can receive them simultaneously. They serve different purposes – Carer Payment replaces lost income while Carer Allowance helps with caring costs.
Q. What if the person I care for passes away?
A. You’ll continue receiving Carer Payment for up to 14 weeks after bereavement to help you transition. Services Australia will contact you about your ongoing payment options.
Q. How long does the application take?
A. Processing times vary from 2-8 weeks, though complex cases may take longer. Having all required documents ready can significantly speed up the process.
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