Caring for a loved one is one of the most important jobs in the world, but it often comes with a hidden cost: financial strain. If you’re navigating the complexities of Centrelink, you’ve likely felt overwhelmed by the jargon, the forms, and the fear of getting it wrong. You’re not alone, and you’ve come to the right place.
This guide is designed to cut through the confusion. We’re going to demystify the two key forms of financial support—the Carer Payment and the Carer Allowance—in plain English. By the end of this page, you will understand what they are, who they’re for, how to apply, and how to find the exact payment rates you’re entitled to.
Carer Payment vs. Carer Allowance: What’s the Difference?
The most common point of confusion is understanding that the Carer Payment and Carer Allowance are two completely separate payments, and you may even be eligible for both.
Think of it this way:
- Carer Payment is an income support payment, like a pension. It’s for people who are unable to work a full-time job because of their demanding caring responsibilities.
- Carer Allowance is a supplementary payment. It’s an extra boost to help with the costs of care, and it’s not considered income for tax purposes.
Here’s a simple breakdown:
| Feature | Carer Payment | Carer Allowance |
|---|---|---|
| Purpose | An income support payment to live on. | A supplement to help with the costs of care. |
| Who is it for? | People who provide constant care and cannot work full-time. | People who provide additional daily care and attention. |
| Financial Test | Subject to a strict income and assets test (a means test). | Has a more generous adjusted taxable income limit. |
| Taxable? | Yes, it is taxable income. | No, it is not taxable income. |
| Requirement | You provide “constant care” to someone with significant needs. | You provide “daily care” to someone with a disability or medical condition. |
Step-by-Step Guide: How to Apply for Carer Support
The Centrelink process can feel like a maze. Follow these steps to make it as smooth as possible.
Step 1: Check Your Eligibility Online
Before you start any forms, use the official online tools. This can save you hours of work. Services Australia has checkers that let you see if you meet the basic criteria.
- Official Link: Check eligibility on the Services Australia website.
Step 2: Prepare Your Documents (Including the Medical Report)
This is the most crucial step. Being prepared will prevent major delays. You will need:
- Proof of Identity: (e.g., Driver’s Licence, Passport, Birth Certificate)
- Your Tax File Number
- Income and Assets Information: For you and your partner, if you have one.
- Medical Report: This is vital. A form will need to be filled out by the doctor of the person you are caring for, detailing their condition and care needs. Do not submit your claim without this.
Step 3: Set up myGov and Link to Centrelink
If you haven’t already, you must create a myGov account and link it to Centrelink. All claims are now processed online through this portal.
Step 4: Submit Your Claim Online
Log in to your myGov account, go to Centrelink, and find the “Make a Claim” option. Follow the prompts carefully. The system will guide you through claiming both the Carer Payment and Carer Allowance.
Step 5: What to Expect After You Apply
Unfortunately, this is often a waiting game. Processing times can vary from a few weeks to a few months. You can track the status of your claim in your myGov account. Centrelink will contact you if they need more information.
Demystifying the Payments: How Much Can You Actually Get?
This is the big question. The answer is not a single number, as it depends entirely on your personal financial situation. Do not trust websites that give you one fixed number—it will likely be wrong. Here’s how it actually works.
The Carer Payment: Income and Asset Tests
Because this is an income support payment, it’s subject to a strict means test. Centrelink looks at two things:
- Your Income: How much you and your partner earn from all sources.
- Your Assets: The value of what you and your partner own, excluding your primary home.
The payment is on a sliding scale. The more you earn or own, the lower your payment will be, until it cuts off completely.
To find the exact, up-to-the-minute rates and thresholds, you must use the official government source.
- Official Link: Services Australia Carer Payment Rates
The Carer Allowance: The Income Limit
This payment is simpler. It’s not asset-tested, but it does have an income test. You and your partner must have a combined adjusted taxable income of under a certain limit. As of 2025, this limit is quite high, meaning many families are eligible.
- Official Link: Services Australia Carer Allowance Income Rules
Frequently Asked Questions
From our research into forums and community groups, we know these are the questions that keep you up at night.
Can I receive both the Carer Payment and Carer Allowance at the same time?
Yes, absolutely. If you meet the eligibility criteria for both—meaning you provide constant care and are under the income/asset tests for the Payment, and you meet the income test for the Allowance—you can and should receive both.
How will these payments affect my pension or other benefits?
The Carer Payment is an income support payment, so you cannot receive it at the same time as another income support payment like the Age Pension or Disability Support Pension. You would need to choose which payment is best for you. The Carer Allowance is a supplement and generally does not affect other benefits.
What happens if the person I care for passes away?
This is a difficult but important question. Centrelink provides a bereavement payment to help you transition. You will generally continue to receive your Carer Payment for up to 14 weeks after the person you’re caring for passes away.
What if I care for more than one person?
You can only receive one Carer Payment, regardless of how many people you care for. However, you can receive a Carer Allowance for each eligible person you provide care for.
How long does the application process take?
This is one of the biggest frustrations. While some claims are processed in weeks, it’s realistic to expect it could take a couple of months. This is why having all your documents ready from the start is so important.
At MD Home Care, we understand the incredible work that carers do. While we help families navigate the complexities of in-home care, we believe you should have access to all the support you’re entitled to.
If you have questions about organising care services or need help understanding your options, contact MD Home Care today.