Centrelink Carer Payment 2025 Changed – The Australian Government has introduced significant changes to the Centrelink Carer Payment in 2025, aiming to provide greater flexibility and support for carers balancing employment and caregiving responsibilities. These updates, effective from 20 March 2025, allow carers to engage in more paid work without jeopardizing their payment eligibility.
This comprehensive guide will walk you through the new work hour rules, updated payment rates, eligibility criteria, new supplementary payments, and practical advice to help you navigate these changes effectively.
Centrelink Carer Payment 2025 Changed
| Feature | Previous Rule | Updated Rule (Effective 20 March 2025) |
|---|---|---|
| Work Hour Limit | 25 hours per week (including work, study, volunteering, and travel) | 100 hours over a 4-week period (paid work only) |
| Activities Counted | Paid work, study, volunteering, and travel | Only paid work; study, training, volunteering, and travel excluded |
| Payment Suspension | Payment canceled if limits exceeded | Payment suspended for up to 6 months; Pensioner Concession Card retained |
| Maximum Fortnightly Payment (Single) | $1,144.60 | $1,149.00 |
| Maximum Fortnightly Payment (Each Member of a Couple) | $862.10 | $866.10 |
| Income Limit | $135,640 per annum | $140,795 per annum |
| Asset Limit | $836,750 | $868,500 |
| Official Resource | Services Australia – Carer Payment | Services Australia – Carer Payment |
The 2025 changes to the Centrelink Carer Payment represent a significant step toward improving flexibility and financial support for Australia’s carers. By allowing more paid work hours and introducing a tiered adjustment payment, the government has acknowledged the diverse and evolving needs of caregivers. These updates are particularly helpful for part-time workers and those transitioning into or out of care roles.
Increased Work Hour Flexibility
Under the previous guidelines, carers receiving the Carer Payment were limited to 25 hours of work, study, or volunteering per week. From 20 March 2025, this has been revised to allow carers to engage in up to 100 hours of paid work over a four-week period without affecting their payment eligibility. Importantly, study, training, volunteering, and travel time are excluded from this 100-hour cap, providing carers with greater flexibility to pursue personal development and community involvement without impacting their benefits.
This change acknowledges the diverse roles carers play and supports their ability to balance employment with caregiving responsibilities.
Updated Payment Rates
To reflect cost-of-living adjustments, the Carer Payment amounts have been updated:
- Single carers: Up to $1,149.00 per fortnight
- Each member of a couple: Up to $866.10 per fortnight
These increases are part of the regular indexation process to ensure payments keep pace with inflation.
Income and Asset Thresholds
Eligibility for the Carer Payment continues to be subject to income and asset tests:
- Income limit: Less than $140,795 per annum before tax
- Asset limit: Valued below $868,500
These thresholds are reviewed annually to align with economic conditions.
Suspension Instead of Cancellation
If a carer exceeds the 100-hour work limit within a four-week period, their Carer Payment may be suspended for up to six months rather than being canceled. This approach allows carers to resume receiving payments without reapplying once their work hours decrease below the threshold. During the suspension period, carers retain their Pensioner Concession Card, ensuring continued access to associated benefits.
Introduction of Carer Adjustment Payment
In addition to the Carer Payment, the government has introduced the Carer Adjustment Payment, effective from April 15, 2025. This payment recognizes the diverse circumstances of carers and offers a tiered support structure:
- Tier 1: Intensive Care – $1,025 per fortnight
- Tier 2: Substantial Care – $875 per fortnight
- Tier 3: Moderate Care – $720 per fortnight
- Tier 4: Supportive Care – $515 per fortnight
An additional Complex Care Supplement of $215 per fortnight is available for carers managing particularly challenging conditions.
Eligibility criteria have been broadened, including a reduced minimum care requirement of 20 hours per week and increased income thresholds ($95,000 for singles and $145,000 for couples).
Eligibility Criteria
To qualify for the Carer Payment, applicants must meet the following conditions:
- Residency: Must be an Australian resident and physically present in the country when applying.
- Care Requirements: Provide constant care to someone who needs care for at least six months or is at the end of their life.
- Income and Assets: Meet the specified income and asset limits.
How to Apply?
Applying for the Carer Payment involves the following steps:
- Prepare Necessary Documents:
- Proof of identity for both the carer and the person being cared for.
- Medical documentation detailing the care recipient’s condition and their need for daily care.
- Submit Your Application:
- Online: Apply via Centrelink on myGov.
- Paper Form: Download the form from Services Australia
FAQs About Centrelink Carer Payment 2025 Changed
Q1: Can I still receive Carer Payment if I study or volunteer more than 25 hours per week?
Yes. The 2025 rules exclude study, volunteering, and training from the 100-hour limit, so you can do these activities without affecting your eligibility.
Q2: What happens if I exceed the 100-hour paid work limit?
Your Carer Payment may be suspended (not canceled) for up to six months. During this time, you can still use your Pensioner Concession Card.
Q3: How often are the payment rates updated?
Rates are indexed twice a year—March and September—to reflect inflation and cost-of-living adjustments.
Q4: Can I receive both the Carer Payment and Carer Adjustment Payment?
No. The Carer Adjustment Payment is an alternative option and is awarded based on a different eligibility framework.
Q5: Are self-employed carers eligible under the new rules?
Yes, as long as your paid working hours do not exceed 100 hours in a four-week period and you meet other eligibility requirements.
