Carer Payment is a financial assistance program designed for individuals who provide full-time care to someone with a significant disability or medical condition.
Starting 20 March 2025, a major update will change the number of hours a carer can work while still being eligible for the payment.
Previously, carers could work up to 25 hours per week, but under the new policy, they will have a 100-hour limit over four weeks.
New Work Hour Limit Effective March 2025
- Carers will be permitted to work up to 100 hours in a four-week period, replacing the prior 25-hour weekly cap.
- This limit applies strictly to paid employment and does not include study, training, or volunteer work.
- Fortnightly reporting remains mandatory to ensure compliance with work-hour and income regulations.
Reporting Requirements and Exemptions
- Carers do not need to report hours spent on volunteering, studying, training, or travel.
- If work hours exceed the 100-hour threshold, carers can utilize respite days to prevent payment suspension.
- If payments are suspended, carers can still retain Pensioner Concession Card benefits.
Respite Days and Payment Suspension
Exceeding 100 work hours within four weeks may result in temporary payment suspension, unless respite days are used. The suspension can last for up to six months under the following conditions:
- The carer does not utilize available respite days.
- The carer exceeds the 100-hour limit multiple times.
- The carer’s income surpasses the permitted threshold.
During a suspension period, the Pensioner Concession Card remains valid, offering access to healthcare benefits and concessions.
Permitted Activities That Do Not Impact Payments
Even after March 2025, carers can still engage in the following activities for up to 25 hours per week without affecting their Carer Payment:
- Paid employment, including self-employment.
- Volunteer work with community or charitable organizations.
- Educational programs at any level.
- Skill development training to improve employability.
The 25-hour limit includes travel time to and from these activities. However, carers must continue to provide daily care to maintain their eligibility.
Mandatory Reporting Responsibilities for Carers
Carers must notify Services Australia within 14 days if they:
- Start earning income from employment or self-employment.
- Begin volunteer work, training, or studying.
Failure to report these changes may result in overpayments, which will need to be repaid or could lead to penalties.
Impact of Income on Carer Payment
The amount of Carer Payment may be adjusted based on the carer’s personal financial circumstances. Below is an overview of factors that affect payments:
| Factor | Impact on Carer Payment |
|---|---|
| Income from employment | Payment may be reduced if earnings exceed the limit. |
| Partner’s income | Can affect eligibility and payment calculations. |
| Use of respite days | Helps in maintaining payment even if work hours exceed 100. |
| Payment suspension | Can last up to 6 months if conditions are not met. |
Note: Carer Payment is taxable if either the carer or the care recipient has reached Age Pension age.
How to Apply for Carer Payment
Carers can submit an application at any time, with payments generally starting from the date of claim submission. The process requires:
- Providing details about the person receiving care.
- Submitting medical documentation, if necessary.
- Completing additional assessment forms if the care recipient’s condition is not pre-verified.
The upcoming changes to Carer Payment eligibility provide more flexibility for carers to balance employment while maintaining financial support. Understanding the new 100-hour work limit, respite day usage, and reporting obligations is crucial to avoid any disruptions in payment.
Carers must stay informed, report changes promptly, and ensure that they meet all eligibility criteria to continue receiving assistance under this program.
FAQs
What is the new work-hour limit for Carer Payment from March 2025?
The limit will shift from 25 hours per week to 100 hours over a four-week period, providing more flexibility for carers.
Do I need to report hours spent on volunteer work or study?
No, carers do not need to report time spent on volunteering, studying, training, or travel. Only paid work hours count towards the limit.
What happens if I exceed 100 work hours in four weeks?
Your Carer Payment may be suspended unless respite days are used. If the limit is exceeded multiple times, the suspension could last up to six months.
Can I still receive the Pensioner Concession Card if my payment is suspended?
Yes, carers retain their Pensioner Concession Card during suspension, allowing access to healthcare benefits and concessions.
