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

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 $1,237.70/fortnight for a single carer, ~$32,291/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

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. For a single homeowner: full payment on non-home assets up to $333,000, tapering to zero at $733,500 (verify current thresholds with Services Australia). Non-homeowner and partnered thresholds are higher.
• You meet the residency test (Australian resident; some recent-arrival waiting periods may apply).
• Your PAID work stays within 100 hours over any four-week period. Study, volunteering and travel are not paid work and are not counted toward that 100 hours — but time away from the person you care for still has to fit the caring requirement above.

The 100-hour rule is the key Carer Payment cap — 100 hours of paid work over four weeks, roughly a day a week. If your paid work is consistently above that, 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 (providing the care the rule requires AND paid work of no more than 100 hours over four weeks; 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 your ATI for the PPL individual income test. If your baby is born and you claim from 1 July 2026, your 2025-26 ATI must be $186,487 or less.
• 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

• Services Australia — Carer Payment — eligibility, claiming, rates
• Services Australia — Carer Allowance — same
• Carer Gateway — government carer-support service: respite, counselling, peer support, emergency planning. Free.
• My Aged Care — for the person being cared for (Support at Home, residential aged care, assessment).

Related NestWise guides

Aged care — assessments, Support at Home contributions and residential fees — is moving to CareWise, our sister product, so it can be covered properly rather than in passing. For what an older person will actually pay, My Aged Care and Services Australia are the authority, and My Aged Care handles the care side.