Australia Centrelink Carer Payment 2025 – New Work Hour Rules & Payment Updates!

The Carer Payment in Australia offers financial assistance to those who undertake continuous care of someone suffering from a serious illness or disability.

It is in 2025 that some significant adjustments are being introduced to this payment program, which will introduce greater flexibility for carers. From 20 March 2025, the working hours’ limits will be altered, enabling carers to work more hours and remain eligible for the payment.

Key changes – under the new policy in 2025

1. New working hour limits: Whereas earlier carers were allowed to work a maximum of 25 hours a week, they can now work a maximum of 100 hours within a four-week period.
2. Reporting requirements: But working hours will have to be reported fortnightly (two weeks).
3. Non-reportable activities: Study, training, volunteering and travel hours will no longer be included in the working time limit.
4. Pay suspension rules: If a carer goes over the 100-hour threshold and has not utilized Respite Days, their pay can be suspended temporarily.

What will not be required to be reported?

The following activities will not need to be reported under the new policy:

• Study or training hours.
• Community organisation volunteer work.
• Caregiving-related travel.

Respite Days and pay suspension rules

If a carer works more than 100 hours of paid work in four weeks, their payment can be suspended. The suspension can continue for up to six months if:

• the carer fails to use their respite days.
• consistently works over the 100-hour limit.
• earns above the allowed earnings limit.

But even during the suspension of payments, carers will still be able to access their Pensioner Concession Card, which provides them with health care and other concessions.

What activities will not affect payments?

While carers can now work 100 hours in four weeks, they will still be permitted to engage in certain activities for up to 25 hours per week, such as:

• Volunteer work
• A paid job, including self-employment
• Training courses or skills training programs

NOTE: These 25 hours will be spent traveling, and the carer will still need to perform their caring duties.

Carers’ reporting responsibilities

Carers need to make sure they tell Services Australia within 14 days about the following changes:

• If they become employed in a new job.
• If they commence volunteer work, study or training.
• If their income increases.

If they do not report these changes, they can be required to repay the overpayment or have their payment stopped.

Effect of income on Carer Payment

Carers’ overall income may impact their payment. These include:

Factors	Effect on payment
Income from work	If earnings are higher than income limits, payments can be cut.
Income of Partner (spouse)	The payment amount might be influenced if the partner earns a higher income.
Respite days taken	If the carer takes more than 100 hours and uses Respite Days, payments can still be made.
Suspension of payment	If an individual consistently breaks the working-time or earnings threshold, payments can be suspended for a period of six months.
Taxable payments	If the carer or recipient of care has reached Age Pension age, this payment can be taxable.

How ​​to apply for Carer Payment?

Carers can apply for this payment at any time, but payments will begin on the day the application is lodged. The application process is as follows:

• Supplying information about the recipient of care.
• Lodging medical documentation if necessary.
• Filling out extra forms if the status of the care recipient is not already approved.

Conclusion

These new changes in 2025 will give carers more flexibility so that they can work as many as 100 hours in a four-week period and still be eligible for financial support.

Adhering to these new regulations and reporting working hours promptly will prevent carers from facing any disruption in payments. Additionally, it will enable them to strike a balance between work and care duties.

FAQs