The Centrelink Carer Payment provides crucial financial support for Australians caring for someone with a severe medical condition or disability.
On 20 March 2025, significant changes will be introduced to the program’s work hour limits, offering greater flexibility while ensuring ongoing support.
Here’s what carers need to know about the new rules, their impact on work schedules, and the steps necessary to maintain eligibility.
New Work Hour Limit Effective March 2025
Starting 20 March 2025, the previous weekly work hour cap of 25 hours will be replaced by a more flexible 100-hour limit over a four-week period.
This adjustment applies exclusively to paid employment hours. Activities like volunteering, study, training, or travel no longer need to be reported, simplifying compliance for carers.
Key Points:
- Work up to 100 hours within four weeks.
- Study, training, volunteering, and travel are not included in the 100-hour cap.
- Fortnightly reporting remains mandatory.
- Payment suspensions occur if the limit is exceeded without respite days.
Reporting and Exemptions
Although carers no longer need to report non-employment activities, they must continue to submit accurate work hour reports every two weeks.
In cases where working hours temporarily exceed the 100-hour limit, carers may use respite days to maintain their payments.
Respite days can help prevent payment interruptions while allowing carers to handle short-term increases in their workload.
Respite Days and Suspension Rules
If a carer consistently surpasses the 100-hour threshold without utilizing respite days, payments may be suspended for up to six months. During this suspension, carers retain their Pensioner Concession Card benefits. Suspension scenarios include:
- Failing to use available respite days.
- Repeatedly exceeding 100 hours within four weeks.
- Earning more employment income than the allowed threshold.
Permitted Activities That Don’t Affect Payments
Carers can continue participating in certain activities up to 25 hours per week without jeopardizing their payments. These include:
- Paid or self-employment.
- Volunteering for community organizations.
- Studying or taking training programs.
This 25-hour limit includes travel time to and from these activities. Importantly, carers must still provide significant daily care to remain eligible.
Income and Payment Reduction
Earnings from work can affect the Carer Payment. Key factors include:
- Income from work: Payment may decrease if earnings surpass certain limits.
- Partner’s income: Payment calculations also consider a partner’s earnings.
- Respite days: Using respite days helps maintain payment eligibility if hours exceed the cap.
- Payment suspension: Non-compliance with work hour rules can result in up to six months of payment suspension.
Steps to Claim the Updated Carer Payment
To apply for Carer Payment, carers need to:
- Provide details about the care recipient.
- Submit relevant medical documentation.
- Complete any additional forms if the care recipient’s condition is not pre-verified.
Payments generally begin from the claim submission date.
Overview of the 2025 Changes
| Aspect | Pre-2025 Rules | Post-2025 Rules |
|---|---|---|
| Work hour limit | 25 hours per week | 100 hours in four weeks |
| Reporting required | Weekly for all activities | Fortnightly for employment only |
| Activities exempt from reporting | None | Study, training, volunteering, travel |
| Respite days usage | Not detailed | Helps retain payment if limit exceeded |
| Suspension conditions | Not applicable | Exceeding 100 hours repeatedly without respite days |
The upcoming changes to the Centrelink Carer Payment provide more flexibility in how carers manage their responsibilities and employment.
By understanding the updated work hour limits, respite day usage, and reporting requirements, carers can ensure they remain eligible and continue receiving the support they need.
FAQs
What are the new work hour limits for Carer Payment in 2025?
From 20 March 2025, carers can work up to 100 hours over a four-week period instead of 25 hours per week.
Do carers need to report study and volunteering hours under the new rules?
No, carers do not need to report study, training, volunteering, or travel hours.
What happens if carers exceed the 100-hour limit?
Exceeding the limit without using respite days can result in payment suspension for up to six months.