What Carer's Payment Is

Carer's Payment is an Australian government income support payment for people who provide full-time care to someone with a severe disability or medical condition. It is not a payment to the person being cared for — it goes to the carer, the person doing the caring work. The payment recognises that full-time caring often prevents someone from working in paid employment.

The payment is administered by Services Australia (the same organisation that runs Centrelink). It is separate from other carer payments and allowances; Carer's Payment is the main income support stream for carers who meet the work capacity test.

The person being cared for must have a severe disability or medical condition that requires full-time care. That person may be receiving Disability Support Pension, or they may be receiving another payment, or they may not be receiving any government payment at all. The carer's own income and assets are assessed to determine the payment rate.

Key Takeaways

  • Carer's Payment is paid to the person providing full-time care, not to the person being cared for, and requires the care recipient to have a severe disability or medical condition.
  • You must pass a work capacity test showing you cannot work more than a small number of hours per week because of your caring responsibilities.
  • The care recipient does not have to be receiving any specific government payment, but their condition must be assessed as requiring full-time care.
  • Your own income and assets affect the payment rate, and you must declare changes to Services Australia within 14 days.
  • The payment continues as long as you meet the work capacity test and the care recipient's condition remains severe enough to require full-time care.

Who Can Receive Carer's Payment

To receive Carer's Payment, you must be at least 16 years old and an Australian resident. You must also pass a work capacity test, which means you cannot work more than a certain number of hours per week (currently 25 hours) because of your caring responsibilities. This is the central requirement: the payment is for people whose caring duties make paid work impossible or severely limited.

The person you care for must have a severe disability or medical condition that requires full-time care. Services Australia assesses this using medical evidence — usually a report from the care recipient's doctor or specialist. The care recipient can be any age: a child with a disability, a parent with dementia, a partner with a chronic illness.

You do not need to be related to the person you care for, though most carers are family members. You must be the primary carer — the person providing the main ongoing care — though in some cases two people can share the role.

How the Work Capacity Test Works

The work capacity test is not about your own disability or health. It is about whether your caring responsibilities prevent you from working. Services Australia will ask you to describe your caring duties: how many hours per week you spend on personal care, supervision, medical appointments, household tasks related to the care, and other caring work.

If you work or study, you must declare those hours. If your total work or study hours plus your caring hours mean you cannot work more than 25 hours per week, you may pass the test. The test is not automatic — you need to provide evidence of your caring duties, usually through a form called the Carer's Payment Work Capacity Assessment.

The test is reassessed if your circumstances change. If you increase your work hours significantly, or if the care recipient's condition improves and requires less full-time care, your payment may be affected.

Income and Assets Assessment

Services Australia assesses your own income and assets to calculate your payment rate. Income includes wages, self-employment, rental income, and some other sources. There is an income-free threshold — you can earn a certain amount before the payment reduces — and the payment then reduces by a percentage of income above that threshold.

Assets are also assessed. If your assets (savings, property other than your home, investments) exceed a certain limit, your payment reduces or stops. The asset limits vary depending on your circumstances, such as whether you have a partner and whether you own your home.

You must tell Services Australia within 14 days if your income or assets change. This includes starting or stopping work, receiving a lump sum, selling property, or inheriting money. Failing to report changes can result in overpayment, which you may be asked to repay.

How Much Carer's Payment Is

The payment rate depends on your income and assets. Services Australia calculates a maximum rate, then reduces it based on your circumstances. The maximum rate changes twice per year (in March and September) to account for inflation. The exact amount you receive is determined by your individual assessment.

You also receive other benefits alongside Carer's Payment, such as concession cards (which give discounts on medicines, utilities, and other services) and exemption from certain mutual obligation requirements. Some carers also receive Carer Allowance, a separate smaller payment, if the care recipient meets additional criteria.

If you have a partner, their income and assets are also assessed and may affect your payment rate. If you are single, only your own income and assets count.

How to Provide Evidence of the Care Recipient's Condition

Services Australia requires medical evidence that the care recipient has a severe disability or medical condition requiring full-time care. This is usually a report from the care recipient's doctor, specialist, or other health professional. The report should describe the condition, the functional limitations it causes, and the type and amount of care required.

You do not need a formal diagnosis, but you do need evidence of the impact on daily functioning. For example, if the care recipient has dementia, the evidence should describe memory loss, confusion, and the need for supervision. If they have a physical disability, it should describe mobility limitations and the personal care required.

Services Australia may ask for additional medical evidence if the initial report is unclear or if your circumstances change. You can ask the care recipient's health professional to complete a specific form, or you can provide a letter or report they have already written.

When Carer's Payment Stops or Changes

Your payment stops if you no longer pass the work capacity test — for example, if you increase your work hours above the threshold or if your caring responsibilities reduce significantly. It also stops if the care recipient's condition improves and no longer requires full-time care, or if the care recipient moves into residential care (though other carer payments may become available).

Your payment may reduce (but not stop) if your income or assets increase. It may also change if you move to a different state, if your relationship status changes, or if you turn 65 and transition to Age Pension.

Services Australia will write to you if your payment is about to stop or change. You have the right to ask for a review of the decision if you disagree with it.

Frequently Asked Questions

Can I work while receiving Carer's Payment?

Yes, you can work up to 25 hours per week and still receive the full payment. If you work more than 25 hours per week, you may no longer pass the work capacity test and your payment will stop. Your caring hours count toward the total, so if you care for someone 20 hours per week, you can work up to 5 hours per week.

What if the person I care for is in hospital or respite care?

Your payment continues if the care recipient is in hospital for treatment. If they are in respite care (temporary care to give you a break), your payment usually continues for up to 63 days per year. If they move into permanent residential care, your payment stops, though you may be able to receive Carer Allowance instead.

Do I need to be a citizen to receive Carer's Payment?

You must be an Australian resident. This includes Australian citizens, permanent residents, and some visa holders. Temporary visa holders are generally not may be able to access. Services Australia can tell you whether your visa type qualifies.

Can two people share Carer's Payment for the same person?

In most cases, only one person can receive Carer's Payment for one care recipient. However, in some circumstances, two people can share the role if they both provide substantial care. You would need to contact Services Australia to discuss whether this applies to your situation.

What happens if I disagree with Services Australia's decision?

You can ask for an internal review of the decision within 13 weeks. If you disagree with the review outcome, you can appeal to the Administrative Appeals Tribunal. Services Australia will explain your review and appeal rights in the letter telling you of the decision.