Carer Payment vs Carer Allowance: what is the difference?

If you care for an older person, or someone with disability or a serious medical condition, there are two Centrelink payments you are most likely to come across: Carer Payment and Carer Allowance. They sound similar and are constantly confused, but they are different payments with different purposes, and some carers qualify for both at once.

The short version: Carer Payment is an income-support payment for someone whose caring means they cannot work much, so it effectively replaces an income and is means-tested like a pension. Carer Allowance is a smaller supplementary payment that recognises the daily costs of caring, and you can receive it while working or on another payment. This guide explains each one, who can get them, and how to claim. Both are administered by Services Australia (Centrelink). Because the rates, thresholds and rules change regularly, treat Services Australia as the authoritative source for current figures rather than any amount published here.

Carer Payment: income support for full-time carers

Carer Payment is for someone who cannot undertake substantial paid work because they provide constant care for a person with a severe disability, medical condition, or who is frail aged. It is paid at the same rate as other income-support pensions and is intended to be a person's main income while they are caring.

• Means-tested. Carer Payment is subject to both an income test and an assets test, in the same way the Age Pension is. What you and your partner earn and own affects whether you qualify and how much you receive.
• A care-needs test on the person you care for. The person receiving your care must be assessed as needing a high level of daily care. For an adult, this usually involves an assessment of their care needs; a treating health professional provides supporting information.
• Substantial-work limit. Carer Payment is for people whose caring role prevents substantial paid work. There are rules about how many hours you can work, study, or be away from caring before it affects the payment, so check the current limits with Services Australia.
• One income support at a time. You generally cannot receive Carer Payment at the same time as another income-support payment such as the Age Pension or JobSeeker, because they all serve the same income-replacement purpose. You would receive whichever you qualify for, not both.

Carer Payment is the more substantial of the two, and correspondingly harder to qualify for. It is aimed at the situation where caring has become a full-time role that has displaced paid work.

Carer Allowance: a supplement for daily care

Carer Allowance is a smaller, regular supplementary payment for someone who provides daily care and attention to a person with disability, a serious medical condition, or who is frail aged. It recognises the extra costs and effort of caring rather than replacing an income.

• Not an income-replacement payment. You can receive Carer Allowance while working, and you can receive it on top of another payment such as the Age Pension, JobSeeker, or Carer Payment.
• Income-tested, but not assets-tested. There is an income test against a threshold for Carer Allowance, but no assets test. If your family income is under the threshold, your assets do not affect it.
• Paid per person cared for, within limits. In some circumstances a carer can receive Carer Allowance for more than one person they care for. The rules on this are specific; ask Services Australia.
• Care can be in the same home or not. Depending on the situation and the level of care, Carer Allowance can apply whether or not you live with the person, though the criteria differ.

Because it is a supplement rather than an income, Carer Allowance has a lower bar than Carer Payment and reaches more carers.

The two side by side

Can you get both at once?

Yes. Because they do different jobs, a carer can qualify for Carer Payment (as their income) and Carer Allowance (as a supplement on top) at the same time, if they meet the criteria for each. This is a common and legitimate combination for someone in a full-time caring role. When you claim, Services Australia can assess you for both.

Other carer support worth knowing about

The two main payments are not the whole picture:

• Carer Supplement is an annual lump-sum paid to people who receive certain carer payments; it is generally paid automatically if you qualify, not separately claimed.
• Child Disability Assistance Payment is an annual payment for carers who receive Carer Allowance for a child under 16.
• Carer Adjustment Payment is a one-off payment that may help in specific circumstances following a catastrophic event affecting a young child, where the family gets no income support.

Beyond payments, Carer Gateway (1800 422 737) is the national service for practical and emotional support for carers, including counselling, peer support, and help arranging respite. It is worth contacting regardless of which payments you receive. See our guides to support for carers and respite care for what else is available, and note that getting a carer payment does not reduce the pension or support of the person you care for.

How to claim

Both payments are claimed through Services Australia:

1. Set up or sign in to a myGov account linked to Centrelink.
2. Start a carer claim. You can often claim Carer Payment and Carer Allowance together in the one process.
3. Provide details about yourself and the person you care for, including their consent, and a report from their treating health professional about their condition and care needs.
4. Provide your income and, for Carer Payment, your assets information.

Claims can take time to process, and the medical report is often the step that holds things up, so arrange it early. If you are unsure which payment fits your situation, Services Australia's Financial Information Service can talk it through with you at no cost. This guide is general information, not personal financial advice; your entitlement depends on your specific circumstances.

Frequently asked questions

What is the difference between Carer Payment and Carer Allowance?

Carer Payment is an income-support payment for someone who cannot work substantially because they provide full-time care; it is paid at pension rates and is income- and assets-tested. Carer Allowance is a smaller supplementary payment for someone providing daily care, which you can receive while working or alongside another payment. One replaces an income; the other tops it up.

Can I get both Carer Payment and Carer Allowance?

Yes. Because they serve different purposes, you can receive both at the same time if you meet the criteria for each. Carer Payment acts as your income and Carer Allowance is a supplement on top. When you claim through Services Australia, you can be assessed for both together.

Is Carer Allowance means-tested?

Carer Allowance has an income test against a threshold, but there is no assets test. If your family income is under the current threshold, the value of your assets does not affect your eligibility. Carer Payment, by contrast, is both income- and assets-tested. Check the current income threshold with Services Australia.

Can I work and still get a carer payment?

You can work and still receive Carer Allowance. For Carer Payment there are limits on how many hours you can work, study, or be away from the person you care for before it affects the payment, because it is meant for people whose caring prevents substantial work. Confirm the current limits with Services Australia.

Does claiming a carer payment affect the pension of the person I care for?

No. Your Carer Payment or Carer Allowance is assessed on your circumstances and does not reduce the Age Pension, disability support, or other payments of the person you care for. They are separate entitlements.

How do I claim Carer Payment or Carer Allowance?

Claim through Services Australia using a myGov account linked to Centrelink. You can usually claim both in one process. You will need details and consent from the person you care for, a report from their treating health professional, and your own income (and, for Carer Payment, assets) information. Arrange the medical report early, as it is often the slowest step.