If you’re someone who provides constant care for a loved one, you know how important the Carer Payment is to your daily life. Good news is coming in March 2025.
Centrelink is changing the work rules for Carer Payment, giving you more flexibility while still supporting the person you care for. But, with this extra freedom also comes the need to know and follow a few new rules to keep your payments on track.
Let’s look into everything you need to know about these important updates.
Update
Starting from 20 March 2025, carers can now work up to 100 hours over a four-week period instead of being limited to 25 hours per week. This change makes it easier for carers to balance work and caring responsibilities without immediately risking their payments.
The 100-hour limit applies only to employment hours. That means time spent studying, training, volunteering, or travelling no longer counts toward your work hour limit. But remember, you still need to report your employment hours every fortnight to Centrelink.
Reporting
While the new rules are more flexible, reporting remains a must. Every two weeks, you’ll need to let Centrelink know how many hours you’ve worked. The good part? You don’t have to report hours spent on study, volunteering, training, or travel anymore.
If you happen to work more than 100 hours within four weeks, you can use available respite days to avoid having your payments suspended.
If you don’t, you could face up to a 6-month suspension, although you’ll still keep your Pensioner Concession Card during that time.
Respite
Respite days are your backup plan. If you find yourself working more than the 100-hour limit, you can use respite days to cover the extra time without losing your payment.
However, if you consistently go over the 100-hour limit without using respite, or if your income gets too high, Centrelink may suspend your payment for up to 6 months. During suspension, you can still enjoy the healthcare benefits provided by your Pensioner Concession Card.
Activities
Besides working, carers can still engage in other activities up to 25 hours per week without affecting their payments. These activities include:
- Paid employment, including self-employment
- Volunteering for a community group or charity
- Studying at any level
- Participating in training programs
Keep in mind that travel time counts towards the 25-hour activity limit. Also, despite working or studying, you must still provide personal care for a significant part of each day.
Responsibilities
Centrelink expects carers to stay transparent. Carers must notify Services Australia within 14 days if they:
- Start a paid job or self-employment
- Begin volunteer work, training, or study programs
Failure to report these changes can lead to overpayments or affect your eligibility, causing unnecessary financial headaches later on.
Income
Your employment income can still affect your Carer Payment. Here’s how different factors impact it:
| Factor | Impact on Carer Payment |
|---|---|
| Income from work | Can reduce payment if earnings exceed thresholds |
| Partner’s income | Also affects payment calculations |
| Respite days used | Helps keep the payment active if work hours exceed the limit |
| Payment suspension | Can last up to 6 months if conditions are not met |
Also, if either you or the person you are caring for has reached Age Pension age, your Carer Payment becomes taxable income.
Claiming
If you are planning to apply for Carer Payment, here’s a simple guide:
- Apply as soon as you qualify to avoid delays
- Provide information about the person you care for
- Submit any required medical evidence
- Complete additional forms if needed, especially if the care recipient’s condition isn’t already verified
Carer Payment usually starts from the day you lodge your claim, not the day you became eligible, so don’t wait too long.
FAQs
How many work hours allowed for carers in 2025?
Carers can work up to 100 hours over four weeks from March 2025.
Is study counted in work hours limit?
No, study, training, volunteering, and travel are excluded from limits.
What happens if carers exceed 100 hours?
Payments may be suspended unless respite days are used.
Do carers still need to report income?
Yes, carers must report employment hours and income fortnightly.
Is Carer Payment taxable income?
Yes, if either the carer or care recipient has reached pension age.
