What’s the Carer Payment and am I eligible?

Providing care to help someone else is a labour of love, but if your caring responsibilities mean you can’t fit in some employment to earn an income, it makes the task even more difficult.

The Australian Government recognises the important role carers play in the community and does its bit by offering an income support payment known as the Carer Payment to eligible carers.

According to Australian Bureau of Statistics figures, at 31 March 2023 there were 304,500 Australians receiving the Carer Payment.

Of these, more than 1 in 4 (28%) recipients were aged 55 to 64, with 60,800 recipients aged 65 and over. According to the Australian Institute of Health and Welfare, these numbers have risen in recent years in line with increases to the qualifying age for the Age Pension.

Females tend to be the main recipients (71%) of Carer Payments, with many people continuing to receive these support payments for long periods. Almost half (49%) of recipients receive payments for five years or more.

What is the Carer Payment?

The Carer Payment is a fortnightly payment administered by Services Australia to help carers pay for their basic living costs.

You may be eligible for the Carer Payment if you provide constant care to someone for at least six months, although you don’t need to wait six months before applying.

Constant care means you are providing someone with care for a large amount of time each day – roughly a normal working day – and this level of care stops you from working fulltime.

The care can be assistance such as physical help (lifting or helping the person get dressed), guidance (support shopping or ensuring the right medication is taken) and supervision ( supporting independence and safety).

This constant care needs to be provided in the care recipient’s home, your home or in hospital.

Care recipients can be someone with a disability or medical condition, or an adult who is frail aged. Services Australia defines frail aged as an older Australian in need of a substantial level of care and support.

The Carer Payment is also paid if you’re caring for someone with a terminal illness.

Who is eligible for the Carer Payment?

To receive the Carer Payment, both you and the person to whom you are providing care must be eligible.

On the day you apply for a Carer Payment, you need to be an Australian resident and physically living in Australia. The care recipient must be living in Australia and be an Australian resident. To continue receiving the payment, you must both be living in Australia as Australian residents.

Services Australia classes Australian residents as Australian citizens, permanent residence visa holders, or protected Special Category visa holders from New Zealand.

Recent arrivals may have to wait two to four years to be eligible to receive these payments. See Services Australia for more.  

When applying for the Carer Payment, you need to provide details about the person you care for and the care provided. Supporting evidence and medical information may be required.

You are permitted to share the caring responsibilities with another person and you can both claim the payment, but each claim will be assessed individually. If you care for multiple people, different rules apply.

What is the income and assets test for the Carer Payment?

Both you and the care recipient are assessed under income and assets tests:

1. Income test for carer payments

You are ineligible for the Carer Payment if your income per fortnight before tax is more than:

• Single – $2,318.00
• Couple – $3,544.00
• Couple living apart due to ill health – $4,592.00

If you and your partner’s combined income is less than this amount, you may be eligible for a reduced amount of Carer Payment. Learn more about the income test.

2. Assets test for carer payments

Services Australia counts any assets you own in full or part such as property or possessions (including debts owed to you and overseas assets), but not your family home or the first two hectares surrounding it.

The assets limit and cut off point are regularly reassessed and depend on your personal situation and whether you are single or have a partner. Learn more about the assets test.

3. Income and assets limits for care recipients

If the care recipient does not receive a pension or benefit from Services Australia or the DVA, their:

• Income must be less than $127,962 a year before tax
• Assets must be worth less than $789,500 (excluding their principal home and first two hectares surrounding it).

These limits are regularly reassessed and may also include the income and assets of some family members.

How much is the Carer Payment and is it taxed?

The amount of Carer Payment you receive depends on your personal circumstances and includes an assessment of the income you (and your partner) receive from employment.

Payment rates for the Carer Payment are reviewed twice a year on 20 March and 20 September.

Fortnightly Carer Payment rates for 20 September 2023 to 27 March 2024

Carer Payment rate per fortnight	Single	Couple (each person)	Couple (combined)	Couple (each person when separated due to ill health)
Maximum basic rate	$1,002.50	$755.70	$1,511.40	$1,002.50
Maximum Pension Supplement	$80.10	$60.40	$120.80	$80.10
Energy Supplement	$14.10	$10.60	$21.20	$14.10
Total	$1,096.70	$826.70	$1,653.40	$1,096.70

Source: Services Australia 

If you or the care recipient have reached Age Pension age (now 67), your Carer Payment is considered a taxable Centrelink payment and you may need to lodge an annual tax return.

Services Australia doesn’t automatically deduct tax from Carer Payments, but you can request it to do so, or set up an automatic deduction in my.gov.au.

If you receive a Carer Payment, you must keep Services Australia updated on your personal circumstances and any changes to the caregiving arrangements (such as taking a break, going overseas or ceasing caring – see table below).

Choosing between the Carer Payment and Age Pension

If you receive the Carer Payment and are about to reach Age Pension age, Services Australia will contact you asking if you wish to continue receiving the Carer Payment or transfer to the Age Pension.

You are only permitted to receive one of these income payments.

You are required to tell Services Australia which payment you wish to receive and whether you have any superannuation, otherwise your Carer Payment may be stopped when you reach Age Pension age.

Similarities between receiving the Carer Payment and the Age Pension

In some ways, receiving a Carer Payment is similar to receiving the Age Pension.

In terms of the payment rate, while the maximum base rates are comparable your actual payments will depend on your individual circumstances rather than being a set payment amount (see table below).

Eligibility for both the Carer Payment and Age Pension are assessed using an income and an assets test.

If you receive either the Carer Payment or the Age Pension, you will receive a Pensioner Concession Card from the government.

The rate of rental assistance you are eligible to receive with both payments is the same unless you are single and share privately rented accommodation, in which case the rate is different.

Both the Carer Payment and Age Pension are counted as part of your taxable income, but the Carer Payment is only taxable when the carer or care recipient reach Age Pension age.

Differences between the rules for the Carer Payment and Age Pension

Situation	Carer Payment rules	Age Pension rules
Income and assets test for care recipient	Income and assets of care recipient assessed if they are not already receiving income support from Services Australia or DVA.	Not applicable
Review of personal circumstances	Both care provider and care recipient’s circumstances may be reviewed to confirm care recipient’s needs still qualify.	Recipients of both the Age Pension and Carer Allowance may have personal circumstances reviewed. Ongoing eligibility for Carer Allowance may be reviewed.
Overseas travel	Care providers travelling temporarily outside Australia without care recipient still eligible for payments for up to 6 weeks if respite days available. Care providers travelling temporarily outside Australia with care recipient are paid Carer Payments for the first 6 weeks. This may be extended in some circumstances. If either care provider or recipient stop living in Australia, Carer Payments cease. Payments don’t cease if you qualify under an international social security agreement. See Centrelink website here.	Age Pension recipients remain eligible when travelling outside Australia regardless of whether it’s temporary or you’re living in another country. (Some exceptions apply.) Age Pension rate paid while travelling overseas may change. See Centrelink website here.
Respite, care breaks and hospitalisation	Care provider entitled to care breaks of up to 63 days each calendar year. After this payments may be cancelled. Additional 63 days of care breaks per calendar year available if care recipient is in hospital temporarily and you still help with care.	Care breaks have no impact on Age Pension payments.
Carer Supplement	If you receive Carer Payment on 1 July, you are eligible for $600 annual Carer Supplement.	Age Pension recipients ineligible for annual $600 Carer Supplement, but eligible if paid the Carer Allowance.
Rent Assistance	Care providers eligible for payments may receive higher maximum rate of rent assistance if single and sharing privately rented accommodation.	Carer providers receiving Age Pension may receive lower maximum rate of rent assistance if single and sharing privately rented accommodation.
Working, volunteering, studying or training	Care providers remain eligible for payments when working, volunteering, studying and training. Activities can be undertaken for up to 25 hours a week, including travel time. Any income received may affect payment rate.	Age Pension recipients have no hourly limits when working, volunteering, studying or training. Any income received may affect payment rate.
Study assistance	Care providers who study may be entitled to Pensioner Education Supplement and Education Entry Payment.	Age Pension recipients who study are ineligible for Pensioner Education Supplement and Education Entry Payment.
Casual or contract work	Care providers undertaking casual or contract work may be required to wait for payments if during the 6 months before claiming they (or their partner) stopped contract, casual or intermittent work. See Centrelink’s seasonal work preclusion period.	Age Pension recipients are not affected by Centrelink’s seasonal work preclusion period.

Source: Services Australia

What happens if the person you care for dies?

The death of the care recipient will have a different impact depending on whether you are receiving a Carer Payment or the Age Pension.

Situation	Carer Payment	Age Pension
Care recipient was your partner	You may be eligible for a lump sum bereavement payment if your partner was receiving income support payments from Services Australia or DVA. You may continue receiving payments for up to 14 weeks, with fortnightly payments adjusted to single rate. You may consider transferring to Age Pension or other payment.	You may be eligible for a lump sum bereavement payment if your partner was receiving income support payments from Services Australia or DVA. You continue receiving Age Pension with regular fortnightly payments adjusted to single rate.
Care recipient was not your partner and their partner is receiving a Centrelink pension or benefit, DVA Service Pension or income support supplement	Ineligible for bereavement payment. You may continue receiving Carer Payment for up to 14 weeks before possible transfer to Age Pension or other payment.	Ineligible for bereavement payment, but you continue receiving Age Pension.
Care recipient was not your partner and their partner is not receiving a Centrelink pension or benefit, DVA Service Pension or income support supplement	You may be eligible for bereavement payment and may continue receiving Carer Payment for up to 14 weeks, after which you may transfer to Age Pension or another payment.	Ineligible for a bereavement payment, but you continue receiving Age Pension.
Care recipient was single	You may be eligible for bereavement payment and may continue receiving Carer Payment for up to 14 weeks, after which you may transfer to Age Pension or another payment.	Ineligible for a bereavement payment, but you continue receiving Age Pension.

Source: Services Australia