The Carer Payment and Carer Allowance provide financial support for Australians who care for someone who is frail aged, has a severe disability or medical condition. The Carer Payment is a means-tested income support payment of up to $1,200.90 per fortnight for a single person and is generally taxable. Carer Allowance is a tax-free supplementary payment of $162.60 per fortnight and is not asset tested. Eligible carers also automatically receive the annual $600 Carer Supplement. Understanding the different income, asset and work rules for each payment can help you access the right support.
Key Takeaways
- Carer Payment is income and assets tested: It acts as an income replacement and limits how much you and the person you care for can earn and own.
- Carer Allowance is a tax-free supplement: It is not assets tested, but you and your partner’s combined adjusted taxable income must be under $250,000 a year.
- Payment rates are indexed regularly: Check Services Australia for the most current rates, as they update in January, March, and September.
- You can still work or study: You can work, study, or volunteer for up to 100 hours over a four-week period and keep your Carer Payment.
- Respite and hospital days are separate: You are allowed up to 63 days of respite and 63 days of hospitalisation for the person you care for each calendar year without losing payments.
If you provide ongoing care for a family member who is ageing, has a disability or a medical condition, you may be eligible for financial support through the Carer Payment or Carer Allowance. These payments are designed to help carers with the financial impact of providing care, but each has different eligibility, income, asset and work rules. Understanding how these payments work can help you access the support you are entitled to and avoid unexpected impacts on your finances.
What is the Carer Payment?
The Carer Payment is a fortnightly payment that helps cover basic living costs. It is designed for people who cannot fully support themselves through substantial paid employment because they provide constant, daily care for someone at home.
What is the Carer Allowance?
The Carer Allowance is a fortnightly income supplement. It helps cover the additional costs of caring for someone, on top of your basic daily living expenses.
What is the Carer Supplement?
The Carer Supplement is an additional annual lump sum. This is paid automatically each year to anyone receiving the Carer Payment or Carer Allowance.
To access these financial supports, the person being cared for must be frail aged, have a severe medical condition, or have a physical, intellectual, or psychological disability. You can read more about these three payments on the Services Australia website.
Am I Eligible for the Carer Payment?
To access this payment, you must provide constant care in the home to someone who is frail aged or is living with an illness or disability. Both you and the person receiving care must be Australian residents.
The person receiving care must:
- Need constant care in the home.
- Have a condition likely to last at least six months or have a terminal illness.
- Score high enough on the Adult Disability Assessment Tool (ADAT).
The government uses these medical reports to verify their exact care needs.
How the Adult Disability Assessment Tool (ADAT) Works
The ADAT involves two questionnaires. One is answered by you (the carer), and the other is completed by a health professional.
Your responses to questions about the amount of care required for daily activities (like mobility, communication, hygiene, eating and cognitive behaviour) are used to calculate the ADAT score.
If you want to know exactly what the government looks for, the Department of Social Services provides a detailed guide to answering the ADAT questionnaire.
Is the Carer Payment Means Tested?
Yes, it is. Both you and the person you are caring for must meet specific income and asset requirements to qualify.
These limits are updated multiple times a year to keep up with the cost of living. You can check the current limits by visiting the income and assets test for Carer Payment page on the Services Australia website.
How Much is the Carer Payment?
The amount of Carer Payment you receive depends on your personal circumstances, including your relationship status and any income or assets you have.
Because the Carer Payment is designed to act as an income replacement (like the Age Pension), it is both income and assets tested.
Current Maximum Carer Payment
- Single: $1,200.90 per fortnight (includes Pension Supplement and Energy Supplement)
- Couple (combined): $1,810.40 per fortnight ($905.20 each)
- Couple (separated due to ill health): $1,200.90 each per fortnight
These rates are generally indexed twice a year, on 20 March and 20 September, to keep up with the cost of living. Because these figures change, it’s always a good idea to check the Services Australia website for the most up-to-date payment thresholds.
How much is the Carer Allowance?
Unlike the Carer Payment, the Carer Allowance is a supplementary payment. It is a set rate and is not assets tested.
Current Carer Allowance rate
- $162.60 per fortnight
The Carer Allowance is indexed once a year on 1 January. While it doesn’t have an assets test, there is an income limit: your and your partner’s combined adjusted taxable income must be under $250,000 per financial year to be eligible.
The Carer Supplement
If you receive the Carer Payment or the Carer Allowance (or both), you will also automatically receive the Carer Supplement. This is an annual lump sum payment of $600 for each eligible payment you receive, paid automatically each July. You do not need to apply for this separately.
Tax and Reporting
Whether or not your carer payments are considered taxable income depends on which payment you receive and your age.
- Carer Payment: This payment is generally treated as taxable income, particularly if you or the person you care for have reached Age Pension age. You can ask Services Australia or the Australian Taxation Office (ATO) to withhold tax from your fortnightly payment to help manage your tax obligations.
- Carer Allowance and Carer Supplement: These payments are not taxable. They are tax-free supplements, though you still need to ensure your combined income stays under the $250,000 threshold for the Carer Allowance.
If you receive the Carer Payment, you must report your income regularly and advise Centrelink immediately if your financial situation or caring arrangements change.
Is the Carer Payment Means Tested?
Yes, it is. Because it is a primary income support payment, both you and the person you are caring for must meet specific income and asset requirements.
If the person you care for does not already receive a qualifying income support payment (like the Age Pension), their own income must be less than $143,752 a year before tax, and their assets must be worth less than $886,750.
For the carer, the income and assets test is the same as the Age Pension. You can earn a certain amount per fortnight before your payment is reduced (tapered) to a part-rate payment. These asset limits and income cut-offs are updated multiple times a year, so we highly recommend checking the exact Carer Payment income and assets tests on Services Australia before you apply.
Note: The Carer Allowance is NOT assets tested, but has the $250,000 combined income limit mentioned above.
What if I Want to Work or Study?
You can work, study, or volunteer for up to 25 hours per week (including travel time) and still be eligible for the Carer Payment. Services Australia manages this as a combined limit of 100 hours over a 4-week period.
Keep in mind that any income you earn from working will be assessed under the income test, which may reduce your fortnightly payment.
What if the Person I Care For Goes to Hospital?
You can continue to receive your Carer Payment and Carer Allowance for up to 63 days in a calendar year if the person you care for goes into hospital.
To keep receiving your payments, you must continue to maintain caring responsibilities while they are in hospital (such as assisting with their needs, speaking with doctors, or doing their laundry) and they must be expected to return to your care when discharged.
What if I Need a Break or am Going on Holiday?
Caring is hard work, and you are entitled to take a break. You can take up to 63 days of “temporary cessation of care” (respite) each calendar year without losing your payments, provided someone else is caring for your loved one during that time.
It’s important to note that respite days and hospitalisation days are separate allowances. Time your loved one spends in the hospital does not eat into your 63 days of personal respite time.
How Do Carer Payments Work With Support at Home?
If you are caring for an older loved one, they may also be eligible for the government-funded Support at Home program.
While the Carer Payment and Carer Allowance support you financially, Support at Home provides funding directly for their care needs. This includes services like personal care, domestic help, transport and nursing.
Receiving a Carer Payment does not stop your loved one from accessing Support at Home. In fact, many families use both systems together to build a sustainable care routine.
If you are managing your 100-hour work and study limit or planning a holiday, you can also use your loved one’s Support at Home funding to arrange respite care so you can take a well-earned break.
How Do I Apply?
The easiest way to apply for both the Carer Payment and Carer Allowance is online.
- Check eligibility: Use the online eligibility checker on the Services Australia website first.
- Log in: Go to your myGov account and ensure it is linked to Centrelink.
- Gather documents: You will need to prove your identity and provide medical reports. The person receiving care will need to be assessed by a doctor using the Adult Disability Assessment Tool (ADAT).
- Submit: Upload your documents and submit your claim through myGov.
Need Help Finding Aged Care Support?
Understanding government payments and aged care funding can be overwhelming. If your loved one needs more support at home or is considering a move into residential aged care, we can help.
Our free and 100% independent service matches families with local aged care providers who have current availability.
Request your FREE Options Report today and let our team do the running around for you, so you can take the next step with confidence.
Carer Payment FAQs
Can I Receive Both the Carer Payment and Carer Allowance?
Yes, you can. If you provide constant care and meet the income and asset tests for the Carer Payment, you will usually qualify for the Carer Allowance as well. In this case, you will also receive multiple Carer Supplements each July.
Can I Get the Age Pension and the Carer Payment at the Same Time?
No, you cannot receive both of these primary income support payments at the same time. If you are of Age Pension age, you will need to choose which payment is best for your situation. However, you can receive the Age Pension and the Carer Allowance at the same time.
Do I Have to Live With the Person I Care For?
No, you do not have to live in the exact same house. You must provide constant care in their home or your home. If you live in separate homes, Services Australia will simply check that the travel time and distance do not stop you from providing the required level of care.
What Happens if the Person I Care For Moves Into an Aged Care Home?
Your Carer Payment and Carer Allowance will generally stop if the person you care for moves into residential aged care on a permanent basis. To help you adjust, Services Australia usually continues your payments for up to 14 weeks after they permanently enter the facility.
When is the Carer Supplement Paid?
The Carer Supplement is an annual lump sum paid automatically in July each year. You do not need to submit a separate claim. As long as you are receiving an eligible payment like the Carer Payment or Carer Allowance on 1 July, the money will be paid directly into your bank account.
