Carer Payment vs Carer Allowance: What's the Difference?
Understand the differences between Carer Payment and Carer Allowance in Australia, including rates, eligibility, income tests, and whether you can receive both at the same time.
Overview: Two Different Payments for Carers
Australia has two main payments for people who provide care to someone with a disability, illness, or who is frail aged — Carer Payment and Carer Allowance. Despite their similar names, they are fundamentally different payments with different purposes, eligibility criteria, and rates. Carer Payment is an income support payment for people who are unable to work in substantial employment because of the demands of their caring role. It is paid at the full pension rate and is income and asset tested. Carer Allowance is a supplementary payment recognising the additional costs of caring. It is not income or asset tested and can be paid on top of wages or other income support payments. Many carers receive both payments simultaneously, while others receive only Carer Allowance because they work or have too much income or assets for Carer Payment. Understanding which payment (or both) you are eligible for can make a significant difference to your financial situation as a carer.
Carer Payment: Rates and Eligibility
Carer Payment is paid at the pension rate — $1,116.30 per fortnight for a single person or $841.40 each for couples as of March 2026, plus Pension Supplement and Energy Supplement (total maximum of $1,212.00 for singles). To qualify, you must provide constant care to someone with a severe disability or medical condition, or be caring for a child under 16 with a disability. The person you care for must receive a qualifying score on the Adult Disability Assessment Tool (ADAT) or child disability assessment. You must provide care in the home of the person you are caring for, and the care must be for a significant period each day. You can work up to 25 hours per week (including travel time) and still receive Carer Payment, but you cannot be studying full-time. Carer Payment is subject to the pension income and asset tests — the same thresholds as the Age Pension apply. You receive a Pensioner Concession Card and are eligible for all pension-rate concessions and supplements.
Carer Allowance: Rates and Eligibility
Carer Allowance is a fortnightly supplement of $153.50 per fortnight (as of March 2026) paid for each person you provide daily care and attention to. Unlike Carer Payment, Carer Allowance is not income or asset tested — you can receive it regardless of how much you earn or how many assets you have. To qualify, you must provide daily care and attention in a private home (yours or the care receiver's). The person you care for must have a disability or medical condition that gives them a qualifying score on the relevant assessment tool, or be a child under 16 with a disability or medical condition that scores sufficiently on the Disability Care Load Assessment. You can receive Carer Allowance for up to two adults and any number of children. In addition to the fortnightly payment, Carer Allowance recipients receive a Carer Supplement of $600 per year (paid as a lump sum in July) for each person they receive Carer Allowance for. You also receive a Health Care Card for the person you care for if they do not already have one.
Can You Get Both Payments at the Same Time?
Yes, you can receive both Carer Payment and Carer Allowance simultaneously, and many carers do. These are separate payments with separate eligibility criteria, and receiving one does not preclude receiving the other. If you qualify for Carer Payment (because you provide constant care and meet the income and asset tests), you can also receive Carer Allowance on top of it (because you provide daily care and attention). This means a single carer could receive up to $1,212.00 per fortnight from Carer Payment plus $153.50 per fortnight from Carer Allowance, totalling $1,365.50 per fortnight, plus any Rent Assistance if applicable. You can also receive Carer Allowance while receiving a different income support payment — for example, a person on the Age Pension who provides daily care to their spouse could receive Age Pension plus Carer Allowance. Or a working person who is not eligible for any income support payment could still receive Carer Allowance because it has no income or asset test.
The Caring Assessment Process
Both payments require a formal assessment of the care needs of the person you are caring for. For adults, the Adult Disability Assessment Tool (ADAT) is used — this is a questionnaire completed by both you (the carer) and the care receiver's treating doctor. It assesses the person's functional ability, behaviour, and the level of care they need. For children, the Disability Care Load Assessment (child) applies, which measures the additional care load compared to a child of the same age without a disability. For Carer Payment specifically, the assessment must show the person requires constant care — a higher threshold than the daily care and attention required for Carer Allowance. You will need to provide medical evidence from the care receiver's treating doctor, including details of their diagnosis, treatment, functional limitations, and prognosis. Services Australia may also arrange for an independent assessment. The assessment process can take several weeks, so it is important to submit comprehensive medical documentation with your initial claim to avoid delays.
Working While Receiving Carer Payments
The rules around working differ between Carer Payment and Carer Allowance. For Carer Payment, you can work up to 25 hours per week (including travel time and self-employment hours) without losing the payment, though your income is still assessed under the pension income test and may reduce the amount you receive. If you exceed 25 hours in a week, your Carer Payment may be cancelled. You also have access to a 63-day temporary cessation of care provision — you can use up to 63 days per calendar year where you are not providing constant care (for hospitalisation of the care receiver, respite, or your own needs) without losing the payment. For Carer Allowance, there is no limit on the hours you can work, because the payment only requires daily care and attention — you can work full-time and still receive Carer Allowance. Carer Allowance also has a temporary cessation of care provision of 63 days per calendar year. The 25-hour work limit on Carer Payment is a frequent source of confusion and can catch carers out if they are not careful about tracking their hours.
Carer Supplement and Other Benefits
Both Carer Payment and Carer Allowance recipients receive additional benefits beyond the base payments. The Carer Supplement is an annual lump sum of $600 paid in July to recipients of both Carer Payment and Carer Allowance. If you receive both, you get the supplement for each payment — potentially $1,200 or more per year if you receive Carer Allowance for multiple people. Carer Payment recipients receive a Pensioner Concession Card, which provides access to cheaper PBS medicines, potential bulk billing, and state government concessions on utilities, transport, and council rates. Carer Allowance recipients receive a Health Care Card for the person they care for. Both payments count toward the qualification period for the Commonwealth Seniors Health Card. Carers may also be eligible for bereavement payments if the person they care for passes away — up to 14 weeks of payment continuation to help with the transition. Some states offer additional carer concessions and supports.
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General information and estimates only — not financial, tax, or legal advice. Always verify with Services Australia.
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