Carer Allowance: A Supplement You Can Receive on Top of Other Payments

If you provide daily care for your partner, parent, or anyone else with a disability or chronic condition, Carer Allowance may apply to you — even if you're working full-time, even if you have substantial assets, and even if you're already receiving another Centrelink payment. It's a small fortnightly supplement that adds up to a worthwhile amount over a year, and it's one of the most under-claimed payments in the system because so many people assume they earn or own too much to qualify. This page walks through the eligibility, the income test, the small print, and how to apply.

The Headline Numbers

Rates effective from —. Carer Allowance is indexed annually on 1 January.

Key Point 1: How Carer Allowance Differs from Carer Payment

The two payments sound similar but they're completely different in purpose, scale, and rules. Most carers should consider applying for both — they can be received simultaneously.

Key Point 2: Eligibility — For You and the Care Receiver

Carer Allowance has eligibility rules that apply to both the carer and the person being cared for. Both have to qualify.

Carer eligibility (you)

• You must be an Australian resident
• You provide care daily (in person or through frequent contact)
• The care is for someone with a disability, severe medical condition, or who is frail-aged
• Your combined family ATI is under the threshold (currently — per year)

Care receiver eligibility

The person you care for must qualify under one of these tests:

• Adults: assessed using the Adult Disability Assessment Tool (ADAT) — same instrument used for Carer Payment
• Children under 16: assessed using the Disability Care Load Assessment
• Frail-aged people: covered if they have severe care needs and are not in a residential aged care facility

The condition must be expected to last at least 6 months and require daily care during that period. The bar is meaningfully lower than for Carer Payment, which requires constant (not just daily) care.

The income test

Carer Allowance uses an annual income test based on combined family adjusted taxable income (ATI), drawn from your most recent tax return. The current limit is — combined per financial year. Unlike the Age Pension's fortnightly income test, this is an annual test — similar in mechanic to the Commonwealth Seniors Health Card. Most working-age couples easily fit under it.

Key Point 3: The Annual Carer Supplement

This is the under-publicised bonus that comes with Carer Allowance. Each year in —, an annual lump sum of — is paid automatically into the same account as your Carer Allowance. There's no separate application — it's paid to anyone who received Carer Allowance, Carer Payment, or certain other carer-related payments at any point during the previous financial year.

• No separate application needed — paid automatically
• Same lump sum amount regardless of which carer payment you received
• Not indexed — the amount has been the same for several years
• Tax-free — doesn't count as taxable income

Combined with the regular Carer Allowance, the total annual support adds up meaningfully across a year, particularly for carers also working full-time who wouldn't otherwise qualify for any Centrelink income support.

Common Scenarios Where You Might Qualify

These are illustrative situations — not specific people — to help you recognise where Carer Allowance fits.

How to Apply for Carer Allowance

The application is shorter than Carer Payment because there's no assets test and the medical assessment is comparable. Most claims are processed within 4–8 weeks once medical evidence is provided.

• Through myGov — "Make a claim" → Carer Allowance
• Care receiver's information — their CRN if they have one, contact details, treating doctor
• Medical evidence — Treating Doctor's Report from the care receiver's GP, plus any relevant specialist reports
• Adult Disability Assessment Tool — completed as part of the claim; reusable across Carer Allowance and Carer Payment if applying for both
• Tax return data — Centrelink uses ATO-shared data for the income test, so make sure your most recent tax return is lodged

For the full document checklist, see the Step-by-Step Application Guide.

What Happens If Circumstances Change

Like all Centrelink payments, Carer Allowance is subject to a 14-day reporting rule — you must notify Centrelink within 14 days of any change to your circumstances. Common triggers include:

• The care receiver's condition improves and daily care is no longer needed
• The care receiver is admitted to hospital or residential aged care for an extended period
• Your combined family ATI rises above the threshold
• You stop providing care (e.g. relocation, family breakdown)
• The care receiver passes away

For bereavement: if the care receiver passes away, Carer Allowance continues for 14 weeks as a bereavement payment. After that, payment stops.

Frequently Asked Questions

Where to Next

Carer Allowance is one of the most under-claimed payments in the Centrelink system. The combination of no assets test, no work-hour limit and a generous income threshold means it applies to a much wider group of carers than people realise. If you provide daily care for your partner or another family member, the application is short and the medical assessment is straightforward — and the benefit, including the annual supplement, is often genuinely worth claiming. If your level of care is more intensive (constant rather than daily), check whether you might also qualify for the more substantial Carer Payment.

Last reviewed: 9 May 2026 · All figures pulled live from the RC Data Engine. For previous indexation periods, see the Centrelink Rates & Thresholds reference page.