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Carer Payment vs Carer Allowance — what you get, and the difference

Carer Payment is an income-support payment (up to $1,200.90/fn) for full-time carers. Carer Allowance is a $162.60/fortnight supplement for the cost of caring. Most carers can claim Carer Allowance; far fewer qualify for Carer Payment. Here's the clean comparison.

7 min readUpdated 28 May 2026

Carer Payment and Carer Allowance are two completely different payments even though their names sound similar. Carer Payment is an income-support payment (currently up to $1,200.90/fortnight for a single carer, ~$31,223/year) — designed to replace a wage for people who can't work because of full-time caring. Carer Allowance is much smaller — $162.60/fortnight flat — and is a recognition payment for ANY carer, including those who also work or receive other Centrelink payments. Most carers can claim Carer Allowance; far fewer qualify for Carer Payment.

This guide covers the eligibility test, current rates, the annual Carer Supplement ($600/year automatic top-up), and where to claim. Verified against Services Australia — Carer Payment and Services Australia — Carer Allowance as at 28 May 2026. Rates are pension-linked and indexed twice a year (20 March and 20 September) — verify with Services Australia for the absolute current amount before relying on a specific figure.

At a glance — the differences

Carer Payment Carer Allowance
What it is Income-support payment (replaces wages for full-time carers) Recognition payment for any carer
Maximum rate (single) $1,200.90/fortnight $162.60/fortnight
Maximum rate (partnered, each) $905.20/fortnight $162.60/fortnight
Annual maximum ~$31,223 (single) ~$4,228
Income test Tapered: 50¢ reduction per $1 over income free area Hard cut-off at $250,000 combined ATI/year
Asset test Yes — single homeowner cut-off ~$314,000 (verify current threshold with Services Australia) None
Taxable Yes (counts toward ATI) No (excluded from ATI)
Who typically qualifies Full-time carers with low income + few non-home assets Anyone caring for someone with substantial care needs

Most carers qualify for Carer Allowance. Far fewer qualify for Carer Payment because of the work-hours restriction and income/asset tests. Many carers receive Carer Allowance + work part-time; this combination is common and intentional.

The eligibility test for Carer Payment

You qualify if all of the following apply:

  • You provide constant care (typically interpreted as the equivalent of a full-time working week) for someone with a disability, severe medical condition, or who's frail aged.
  • The person you care for meets the medical eligibility criteria assessed by Services Australia via an Adult Disability Assessment Tool (ADAT) or Child Disability Assessment Tool (CDAT).
  • You meet the income and asset tests (single homeowner asset cut-off ~$314,000 — verify current threshold; non-homeowner and partnered thresholds higher).
  • You meet the residency test (Australian resident; some recent-arrival waiting periods may apply).
  • You DON'T work more than 25 hours/week (including travel + study + volunteering combined).

The 25-hour rule is the key Carer Payment cap. It rules out most carers who maintain part-time work. If you're working more than 25 hours/week, Carer Allowance is your path — and it doesn't have a work-hours restriction.

The eligibility test for Carer Allowance

Much wider:

  • You provide daily care to a child or adult with a disability, severe medical condition, or who's frail aged.
  • The person you care for meets the medical eligibility criteria (same ADAT/CDAT assessment).
  • Combined family income (your ATI + your partner's ATI) is below $250,000/year. Above that, zero. No taper — it's a hard cut-off.
  • You meet the residency test.

No work-hours restriction. No asset test. Just the income cut-off, and only at the very high end.

The Carer Supplement — $600/year automatic

If you're receiving Carer Payment OR Carer Allowance on 1 July of any year, Services Australia automatically pays you a $600 Carer Supplement in early July of that year. No application — it just appears in your bank account.

If you receive BOTH Carer Payment AND Carer Allowance, you get the supplement TWICE — $1,200/year.

Worked examples

A single mum caring for an autistic 12-year-old while working part-time (20 hrs/wk):

  • Carer Allowance: ✓ $162.60/fortnight = ~$4,228/year
  • Carer Payment: probably yes (under 25 hrs/wk; income test likely passes for a part-time wage)
  • Carer Supplement: ✓ $1,200/year (both payments)
  • Total carer-related: ~$36,651/year plus part-time wage, plus FTB if eligible

A daughter caring for her elderly father full-time (lives with her, she's stopped working):

  • Carer Allowance: ✓ $162.60/fortnight
  • Carer Payment: ✓ if income/asset tests pass (likely if she has no wage income)
  • Carer Supplement: ✓ $1,200/year
  • Plus eligible for Health Care Card (low-income or carer)

A couple where one partner cares for their adult disabled child, the other works full-time at $90k:

  • Carer Allowance: ✓ for the caring parent (combined ATI $90k < $250k threshold)
  • Carer Payment: probably NO (combined family income too high after asset/income test)
  • Carer Supplement: ✓ $600/year (one payment)

A son who visits his ageing parent every weekend to help (parent lives in own home):

  • Carer Allowance: depends on care intensity. If the support is occasional rather than daily, may not meet the daily-care test. ADAT assessment is the deciding factor.
  • Carer Payment: no (not full-time caring)
  • Carer Supplement: only if Carer Allowance is paid

How Carer Payment interacts with other Centrelink

Carer Payment is taxable income and counts toward your ATI for Centrelink purposes. So:

  • FTB-A and FTB-B — Carer Payment is counted in your family ATI. If you also have a partner working, the family ATI determines FTB-A taper and FTB-B cliff. Common pattern: a Carer Payment recipient receives Carer Payment income + may also qualify for FTB-A (typically full-rate FTB-A because family income is low).
  • Rent Assistance — payable on top of Carer Payment for renters, included in the fortnightly Carer Payment.
  • PPL — Carer Payment counts toward the $180,000 individual income cap for PPL claims.
  • CCS — combined family income (including Carer Payment) drives the CCS rate for any childcare you use.

Carer Allowance is NOT taxable and doesn't count toward your ATI for FTB or any other Centrelink income test. It sits "alongside" your other payments without affecting them.

The medical eligibility — ADAT / CDAT

Services Australia uses two assessment tools:

  • ADAT (Adult Disability Assessment Tool) — for adults (16+). The person being cared for completes parts of it; the GP or specialist also fills in sections. Services Australia uses the score to determine if Carer Payment / Carer Allowance is payable for that person.
  • CDAT (Child Disability Assessment Tool) — for children (under 16). Similar structure; the GP/paediatrician's input is critical.

The assessment is what makes or breaks most Carer Payment / Carer Allowance applications. A clear, detailed report from a doctor describing the daily care required materially helps. Vague reports get rejected.

How to claim

Both are claimed via myGov (link your Centrelink account):

  1. Get the medical paperwork — request the ADAT or CDAT form from Services Australia, take it to your GP or specialist, get it completed.
  2. Lodge the claim in Centrelink (online or paper form SA303 for Carer Allowance, SA340 for Carer Payment).
  3. Wait for the assessment — usually 4–12 weeks for first-time claims. Provisional payment may start earlier.
  4. Back-payment — payments back-date to the date of claim (not earlier), so don't delay.

Where to go for more

Related NestWise guides

Frequently asked questions

Quick answers

What's the difference between Carer Payment and Carer Allowance?

Carer Payment is an income-support payment that REPLACES a regular wage — paid to people who can't work much (or at all) because of full-time caring. It's income and asset tested. Carer Allowance is much smaller — $162.60/fortnight — and is a recognition payment for ANY carer (even if you work full-time). Most carers can claim Carer Allowance; only people in genuine full-time caring roles qualify for Carer Payment.

How much is Carer Payment in 2025-26?

The current maximum rates (from 20 March 2026, pension-linked and indexed twice a year) are $1,200.90/fortnight for a single carer (about $31,223/year) and $905.20/fortnight each for partnered carers. That's the maximum — your actual rate depends on the income and asset tests, which can taper the payment to zero for higher-income carers.

Is Carer Allowance taxable?

No. Carer Allowance is not taxable, doesn't count toward your taxable income, and doesn't go on your tax return. It also doesn't count for the FTB-A income test (unlike Carer Payment, which IS taxable and does count toward your ATI for other entitlements).

Can I get both Carer Payment AND Carer Allowance?

Yes — many carers get both. They're two different payments with two different purposes. The combination is common for full-time carers and the annual Carer Supplement is paid TWICE in that case ($1,200/year instead of $600).

What's the Carer Supplement?

A $600-per-year one-off payment from Services Australia, paid automatically each July if you were receiving Carer Allowance OR Carer Payment on 1 July of that year. If you receive both, you get the supplement TWICE ($1,200). No application needed; it just lands in your bank account in early July.

Does Carer Allowance have an income test?

Yes — but a single hard cut-off, not a sliding taper. Combined adjusted taxable income (you + partner) above $250,000 per year means no Carer Allowance. Below that, the rate is fixed at $162.60/fortnight regardless of income. There's no asset test for Carer Allowance.

Not financial advice
We've taken all care to make sure the figures in this guide are correct as at the last-updated date shown above. Rates and rules change — Centrelink, the ATO and state programs update at least each financial year, and sometimes mid-year (as the 3 Day Guarantee did on 5 January 2026). NestWise refreshes its calculators when new figures are published, but always verify with Services Australia via myGov before relying on a specific number. NestWise is not a financial or legal advisor and the information here is general only — it does not take your full circumstances into account.