BenefitsMate

Carer Payment for Grandparents — Who Can Be a Carer?

Grandparents who provide constant care to a grandchild with a severe disability or medical condition can qualify for Carer Payment. Many grandparents also have the option of Age Pension (if 67+) — understanding which payment is more beneficial and how Carer Allowance interacts with Age Pension is important.

Last verified: 20 March 2026

Eligibility

  • *Grandparents can receive Carer Payment for caring for a grandchild with a severe disability
  • *The grandchild must meet the relevant disability assessment criteria (DCLAD for under 16, ADAT for 16+)
  • *You must provide constant care in the grandchild's home or your home
  • *If you are 67+, you may choose between Carer Payment and Age Pension (same rate) — consider which gives better conditions
  • *If the grandchild's parents are unable to provide care (e.g., deceased, incapacitated, absent), you may also be eligible for other family payments
  • *Great-grandparents also qualify under the same rules

Carer Payment Rates (2025-26)

PaymentSingle rate/fnCouple rate/fn (each)
Carer Payment$1,116.30$841.40
Carer Allowance (on top)$153.00$153.00
Total$1,269.30$994.40

Carer Allowance is not income or asset tested. Rates current from 20 March 2026.

Live-In Requirements

You must live with your grandchild. This is common when grandparents are the primary carers for grandchildren with disabilities, particularly when parents are unable to provide care. If you have formal legal guardianship, this strengthens your claim.

Two-Carer Scenarios

If both a grandparent and a parent provide care for the same child, only one can receive Carer Payment. Typically the primary carer (the person providing the most care) receives Carer Payment, and the other may receive Carer Allowance. If the grandparent is the primary carer because the parent cannot care, this should be clearly documented.

Income Test

Singles can earn up to $204 per fortnight before Carer Payment is reduced. Above that, your payment reduces by 50 cents for every dollar earned. Couples have a combined income free area of $360 per fortnight. Carer Allowance is NOT affected by income.

Assets Test

Single homeowners can have up to $314,000 in assets. Single non-homeowners: $566,000. Couple homeowners: $470,000 combined. Couple non-homeowners: $722,000 combined. Above these limits, Carer Payment reduces by $3 per fortnight for every $1,000 of excess assets.

Respite Provisions

You are entitled to 63 days of respite per year where someone else provides the care. During respite, you continue to receive Carer Payment. This can be used for holidays, hospitalisation, or any break from caring. Unused days do not carry over.

Frequently Asked Questions

Can I get Carer Payment as a grandparent?
Yes. Grandparents can receive Carer Payment if they provide constant care to a grandchild with a severe disability or medical condition. You must live with the grandchild. The same eligibility criteria apply as for any other carer.
Should I get Carer Payment or Age Pension?
If you are 67+, Carer Payment and Age Pension have the same rate ($1,116.30/fn single). The key difference is that if you receive Age Pension, you can also receive Carer Allowance ($153.00/fn) on top. If you receive Carer Payment, you also get Carer Allowance. In most cases, Carer Payment + Carer Allowance provides slightly better conditions as it recognises your caring role.
Can I get Carer Allowance with Age Pension as a grandparent?
Yes. If you are on Age Pension and provide daily care to your grandchild, you can receive Carer Allowance ($153.00/fn) on top of your Age Pension. Carer Allowance is not income or asset tested.
What if the parents are still alive but cannot care?
If the parents are alive but unable to provide care (due to their own disability, substance abuse, incarceration, or other reasons), you can still receive Carer Payment as the grandparent carer. Document why the parents cannot provide care.
Are there extra payments for grandparent carers?
You may also be eligible for Family Tax Benefit (if you have legal responsibility for the child), Child Care Subsidy, Rent Assistance, and the Carer Supplement ($600/year). Grandparent Advisers at Services Australia can help you navigate available payments.

Related tools & calculators

Benefits CheckCarer Payment CalculatorDSP CalculatorIncome & Asset TestAssets Test ThresholdsPayment Rates 2025-26Deeming RatesRent Assistance

This tool provides general information and estimates only based on publicly available data from Services Australia and the Department of Social Services. It does not constitute financial, tax, or legal advice and should not be relied upon as such. Results may not reflect your specific circumstances. Always verify with Services Australia before making decisions about your entitlements.

Sources: Services Australia, Department of Social Services. Rates current from 20 March 2026.