The Carer Payment provides financial support to individuals who offer continuous care to someone with a severe medical condition or disability.
Effective March 20, 2025, significant changes will be introduced regarding the number of hours carers can work while still qualifying for payments. The previous 25-hour weekly cap will be replaced with a 100-hour limit over four weeks.
These adjustments offer greater flexibility, as carers are no longer required to report study, training, volunteer work, or travel hours.
However, they must continue reporting work hours every fortnight, as exceeding the 100-hour limit without using respite days may lead to payment suspension.
Understanding these policy changes is crucial for carers to manage work schedules, remain eligible, and avoid payment disruptions.
Key Updates to the Carer Payment Policy (Effective March 2025)
| Policy Update | New Guidelines |
|---|---|
| New Work Hour Limit | Carers can now work up to 100 hours within four weeks instead of the previous 25 hours per week limit. |
| Non-Reportable Activities | Study, training, volunteering, and travel time do not count toward the 100-hour limit. |
| Fortnightly Reporting | Work hours must still be reported every two weeks to ensure compliance. |
Exemptions & Reporting Requirements
What Carers Are Not Required to Report?
- Study or training hours.
- Volunteer work for community organizations.
- Travel time related to caregiving responsibilities.
Respite Days & Payment Suspension Rules
If a carer exceeds 100 hours of paid work within a four-week cycle, their Carer Payment may be suspended unless they use available respite days.
A suspension can last up to six months if:
- The carer does not use respite days.
- The 100-hour work limit is exceeded repeatedly.
- The carer earns income beyond the allowed threshold.
Even during suspension periods, carers will retain their Pensioner Concession Card, which grants healthcare and other concession benefits.
Permitted Activities That Won’t Affect Carer Payment
Even with the updated 100-hour limit, carers can still participate in specific activities up to 25 hours per week, including:
- Paid employment, including self-employment.
- Volunteer work for charitable or community organizations.
- Educational courses or skill training programs.
Note: The 25-hour weekly limit includes travel time. Carers must still provide significant daily care to remain eligible for the Carer Payment.
Reporting Responsibilities for Carers
Carers must inform Services Australia within 14 days if they:
- Begin earning income from employment or self-employment.
- Start volunteering, studying, or participating in training programs.
Failing to report these changes may lead to overpayments that must be repaid, or even payment suspension.
How Income Affects Carer Payment?
The Carer Payment amount may be reduced based on the carer’s income and financial situation.
| Factor | Impact on Carer Payment |
| Work Income | Payment may decrease if earnings exceed the income threshold. |
| Partner’s Income | Partner’s earnings are considered in payment calculations. |
| Respite Days Used | Helps maintain payment if work hours exceed the 100-hour cap. |
| Payment Suspension | Can last up to six months if work hour or income limits are repeatedly exceeded. |
| Taxable Payment | If the carer or care recipient has reached Age Pension age, Carer Payment is taxable. |
Steps to Apply for Carer Payment
Carers can apply at any time, but payments begin from the date of claim submission. The application process involves:
- Providing details about the person receiving care.
- Submitting supporting medical documents, if required.
- Completing additional forms if the care recipient’s condition is not pre-approved.
The 2025 updates to the Carer Payment program introduce greater flexibility, allowing carers to work up to 100 hours over four weeks while still receiving financial support.
These changes provide better opportunities for carers to maintain employment while continuing their caregiving responsibilities.
To avoid disruptions in payments, carers should understand and comply with the new rules, report work hours accurately, and use respite days when necessary.
FAQs
Can I still receive Carer Payment if I exceed the 100-hour work limit?
Yes, but only if you use respite days. Otherwise, payments may be suspended for up to six months.
Will volunteer work or study hours count towards my work limit?
No, volunteer work, study, training, and travel time do not count toward the 100-hour limit.
How often do I need to report my work hours?
Carers must report their employment hours every fortnight to stay compliant with payment rules.