How Carers Payment Works and What It Means for Your Budget
What Carers Payment Is and Who Receives It
Carers Payment is a regular payment from the Australian government to people who stay home to care for someone with a disability, illness, or age-related condition. The payment goes directly to the carer—the person doing the caring—not to the person being cared for. It arrives by bank transfer, usually fortnightly, and the amount depends on your circumstances and whether you have a partner.
You receive Carers Payment if you meet work and income tests set by Services Australia (the government agency that runs it). The payment is designed to replace lost income because you cannot work full-time while providing care. It is separate from other payments the person you care for might receive, such as the Disability Support Pension or Age Pension.
Carers Payment is not a one-off grant or loan. It continues as long as you meet the conditions—you care for a person who qualifies, you do not earn above the income limit, and your assets stay below the asset limit. If your circumstances change, the payment stops or reduces.
Key Takeaways
- Carers Payment is a fortnightly payment from Services Australia to people who provide full-time care and cannot work.
- The person you care for must have a disability, illness, or condition serious enough to need daily care and support.
- You must pass an income test (your own earnings) and an asset test (savings and property) to receive the payment.
- The payment amount changes if you have a partner, and it stops if you work more than 25 hours a week or your income rises above the limit.
- You report changes to Services Australia within 14 days—changes in work hours, income, living situation, or the care needs of the person you support.
Income and Asset Limits That Affect Your Payment
Services Australia sets an income limit and an asset limit that determine whether you receive the full payment, a reduced payment, or no payment at all. The income limit counts your own earnings from work, plus investment income, rental income, and some other sources. It does not count the income of the person you care for.
The income limit varies depending on whether you have a partner. If you are single, the limit is higher than if you are partnered. Work out your annual income before tax, then divide by 26 to see your fortnightly income. If your fortnightly income exceeds the limit, your payment reduces by 50 cents for every dollar you earn above it.
The asset limit also depends on your relationship status and whether you own your home. Assets include savings, shares, investment property, vehicles (except one car), and other property. Your home does not count as an asset. If your assets exceed the limit, your payment reduces by $3 for every $1,000 above the threshold. Services Australia will tell you the exact limits when you contact them, because they change each year.
You must report changes to your income or assets within 14 days. If you do not, you may be overpaid and asked to repay the money. This is one reason to keep Services Australia updated even if the change seems small.
How the Payment Arrives and What to Expect Each Fortnight
Carers Payment is paid fortnightly by direct bank transfer to the account you nominate. The payment date depends on your date of birth—Services Australia splits payments across the fortnight so their systems do not overload. You can check your payment date by logging into your Services Australia account online or calling them.
The amount you receive each fortnight depends on your age, relationship status, and whether you have dependent children. A single carer under 60 receives a different amount than a partnered carer or one over 60. The payment is indexed twice a year (in March and September), which means it increases to keep pace with inflation. The exact amount changes, so do not assume it stays the same year to year.
If you work part-time, you can earn up to a certain amount before your payment reduces. The work limit is usually around 25 hours a week, but the exact threshold depends on your income. If you exceed the work limit or earn above the income threshold, report it immediately—do not wait for Services Australia to find out.
When Carers Payment Stops or Changes
Your payment stops if the person you care for no longer needs daily care, moves into residential care, or passes away. It also stops if you start working more than the allowed hours, your income rises above the limit, or your assets exceed the asset limit. If you move in with a partner or your partner moves in with you, your payment amount changes because the income and asset tests are different for partnered people.
If you go on holiday or travel overseas, your payment may stop or reduce depending on how long you are away and whether the person you care for is still receiving care. Tell Services Australia before you travel so they can explain what happens to your payment.
If you stop being may be able to access, Services Australia will write to you explaining why and when the payment ends. You have the right to ask for a review of that decision if you think it is wrong. The review process is free and you can ask for help from a community legal centre or advocacy service.
Reporting Changes and Staying on Top of Your Payment
You must report changes within 14 days of them happening. Changes include: starting or stopping work, a change in work hours, a change in income, moving house, a change in the care needs of the person you support, or a change in your relationship status. You can report changes online through your Services Australia account, by phone, or in person at a Services Australia office.
If you do not report a change and Services Australia finds out, you may be overpaid. An overpayment means you received more money than you were may have access to to, and you will be asked to repay it. Overpayments can be large if the change went unreported for months. The best protection is to report promptly and keep records of your income and work hours.
Services Australia also conducts reviews of Carers Payment recipients to check that they still meet the conditions. If you are selected for a review, they will ask for documents such as payslips, tax returns, or a letter from your employer. Respond within the timeframe they give you, or your payment may be suspended while they investigate.
Other Payments and Support You Might Receive Alongside Carers Payment
If you receive Carers Payment, you may also be may have access to to other support. Carer Allowance is a separate, smaller payment for people who provide care; you can receive both Carers Payment and Carer Allowance at the same time. Carer Supplement is a one-off annual payment made in December to may be able to access carers. You do not need to do anything to receive it—Services Australia pays it automatically if you are may be able to access.
You may also be may have access to to a Pensioner Concession Card, which gives you discounts on medicines, utilities, and other services. The card is issued automatically when you receive Carers Payment, but check that you have it and that it is current.
If the person you care for receives the Disability Support Pension or Age Pension, they may be may have access to to Carer Payment Supplement or other add-ons. These are separate from your Carers Payment and go to them, not to you. Ask Services Australia what the person you care for might receive.
What Happens If You Disagree With a Decision About Your Payment
If Services Australia makes a decision about your Carers Payment that you think is wrong—such as reducing your payment, stopping it, or refusing to pay it in the first place—you have the right to ask for a review. You do not have to accept the first decision.
The first step is to ask Services Australia for an internal review. Write to them or call and explain why you think the decision is wrong. Include any documents that support your case, such as payslips, a letter from your employer, or proof of your assets. Services Australia will review the decision and write back to you within a set timeframe.
If you disagree with the internal review decision, you can ask the Administrative Appeals Tribunal (AAT) to review it. The AAT is independent of Services Australia. There is a fee to lodge an appeal, but you may be able to get help paying it. You can also get free help from a community legal centre or a carer advocacy organisation.
Frequently Asked Questions
Can I work while receiving Carers Payment?
Yes, but only part-time. You can usually work up to around 25 hours a week without losing your payment, though the exact limit depends on your income. If you earn above the income threshold, your payment reduces by 50 cents for every dollar above the limit. Report any change in work hours within 14 days.
What if the person I care for goes into hospital or respite care?
Your payment may continue if the hospital or respite stay is temporary. If the person moves into permanent residential care, your Carers Payment stops. Tell Services Australia about any hospital or care stay so they can explain how it affects your payment.
Do I have to repay Carers Payment if I was overpaid?
Yes. If you received more than you were may have access to to because of a change you did not report, Services Australia will ask you to repay the overpayment. You can ask to set up a payment plan if you cannot repay it all at once. If you think the overpayment was not your fault, you can ask for a review.
Can I receive Carers Payment if I am studying?
You can study part-time while receiving Carers Payment, but full-time study may affect your may be able to access. The rules depend on the type of study and how many hours it takes. Contact Services Australia before you start studying to find out whether it will affect your payment.
What if my partner starts receiving Carers Payment too?
If both you and your partner are carers for different people, you may both receive Carers Payment. However, the payment amount for each of you will be lower than if you were single, because the income and asset tests are different for partnered people. Services Australia will work out the correct amount for each of you.