If you care for a loved one with a serious illness or disability, you may be entitled to a Carer Payment. This payment is paid by the Australian Government to people who provide ongoing care to someone in need and have limited earning capacity.
From March 2025, some big changes are being made to the scheme – especially for people who want to work and care. Let’s take a closer look at what these changes are, how they will benefit you, and what to keep in mind.
What’s changing? – Key updates for 2025
| Policy Update | New Guidelines |
|---|---|
| New Work Hour Limit | Carers can now work up to 100 hours within four weeks instead of the previous 25 hours per week limit. |
| Non-Reportable Activities | Study, training, volunteering, and travel time do not count toward the 100-hour limit. |
| Fortnightly Reporting | Work hours must still be reported every two weeks to ensure compliance. |
Who gets Carer Payment?
Carer Payment is paid to people who care for a sick, disabled or elderly person throughout the day. It also takes into account your income and assets. The new changes for 2025 give working carers some relief so they can balance work and care.
New working hours limit – how to get the benefit?
Carers can now work work that covers 100 hours over four weeks, i.e., an average of 25 hours per week. But now the limit will apply on a flexible scale of four weeks, rather than week by week. This will give them more opportunities for employment or self-employment.
Important: Study, volunteering, and travel time will no longer count towards this limit.
How and when to report?
Every fortnight (2 weeks) you will need to report your work activities:
- How many hours did you work?
- Did you start any new study, training or volunteering?
- Did your income change?
If you do not report or provide false information, you may have to return the overpayment, and payment may also be suspended.
What are respite days and why are they important?
If you work more than 100 hours, your Carer Payment may be suspended. But you can avoid this suspension by using Respite Days.
In what situations can the payment be suspended?
- If you exceed the 100-hour limit in a row.
- If you do not use Respite Days.
- If your earnings exceed the limit.
Suspension period: Up to 6 months, but you will continue to receive Pensioner Concession Card benefits during this time.
What activities will not affect the payment?
You can still do some activities (up to 25 hours per week) that will not affect the Carer Payment:
- Job or self-employment
- Volunteering
- Education or skills training
- Travel time (connected to caring)
Note: you must still play a major part in caring.
Income and Carer Payment – how are they linked?
| Factor | Impact on Carer Payment |
|---|---|
| Work Income | Payment may decrease if earnings exceed the income threshold. |
| Partner’s Income | Partner’s earnings are considered in payment calculations. |
| Respite Days Used | Helps maintain payment if work hours exceed the 100-hour cap. |
| Payment Suspension | Can last up to six months if work hour or income limits are repeatedly exceeded. |
| Taxable Payment | If the carer or care recipient has reached Age Pension age, Carer Payment is taxable. |
The amount of Carer Payment takes into account both your income and your partner’s income.
How to apply for Carer Payment?
- You can apply at any time, but payments will start from the date of application.
- The application will require:
- Details of the person you are caring for
- Medical documents (if required)
- Additional forms (if the person’s status is not already recognised)
The application can be made online on the Services Australia website.
What to do to take advantage of the new rules?
- Keep a regular record of your working hours.
- Report accurately every fortnight.
- Don’t forget to use Respite Days.
- Report any changes within 14 days.
Conclusion
By introducing flexibility in Carer Payment policies in 2025, the government has given carers greater opportunities and relief. They can now work with greater independence and, at the same time, care for their loved ones. If you understand these rules, report on time and use Respite Days wisely, you can avail Carer Payment without any hassle.
FAQs
Q.1 Will the payment stop if I work more than 100 hours?
A. Yes, but if you have used Respite Days, the payment may continue.
Q.2 Will volunteering, studying or travelling hours count as work?
A. No, these activities will not count towards the 100-hour limit.
Q.3 How often do I have to report?
A. Work hours must be reported every 2 weeks (fortnight).
Q.4 Is Carer Payment taxable?
A. If you or someone you care for is of Age Pension age, this payment may be taxable.
Q.5 What are “respite days” and how do they help?
A. Respite days allow carers to exceed the 100-hour work limit temporarily without losing payment. However, there’s a limited number of respite days available each year.
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