Massive Changes to Centrelink Carer Payment: In 2025, Centrelink Carer Payment recipients in Australia will face the most comprehensive overhaul in recent history. These major changes to the Carer Payment scheme aim to improve support, enhance flexibility, and make caregiving more sustainable for individuals who dedicate their lives to caring for others. Whether you’re caring for a parent, partner, or someone with a serious disability or medical condition, understanding these updates is critical to ensure your benefits remain intact—and even improve.
These changes include increased income limits, extended allowable work hours, new respite day allowances, and a significant one-time Cost of Living Boost. The government has acknowledged the rising costs and pressures on informal carers and is modernizing the system to be more inclusive, practical, and supportive. This article is your go-to guide for understanding what’s changed, how it affects you, and what steps you need to take next.
Massive Changes to Centrelink Carer Payment
| Feature | Details |
|---|---|
| Work Hours Limit | Increased to 100 hours over a 4-week period (previously 25 hours/week) |
| Activities Excluded from Work Hours | Study, volunteering, training, and travel time not counted |
| Respite Days | 63 days per year allowed to exceed limits without losing payment |
| Income Threshold | Increased by 12% as of May 2025 |
| New Fortnightly Rate (Single) | $1,144.40 (includes all supplements) |
| New Fortnightly Rate (Couple) | $862.60 each |
| Cost of Living Boost | One-time $1,144 top-up in 2025 |
| Pension Adjustments | Review every March and September |
| Official Resource | Services Australia – Carer Payment |
The Centrelink Carer Payment 2025 changes reflect a major leap forward in how Australia supports its informal caregivers. These policy enhancements don’t just increase income and payout limits—they provide freedom, recognition, and financial security to those who dedicate themselves to the care of others.
Whether you’re new to the system or a long-time recipient, take full advantage of these updates. They’re designed with your well-being and dignity in mind. Stay informed, stay supported, and check your myGov account today to review your current status or apply.
What Is the Centrelink Carer Payment?
The Centrelink Carer Payment is a fortnightly income support benefit designed for people providing full-time daily care to someone who cannot care for themselves due to a long-term illness, disability, or frailty associated with age.
It differs from the Carer Allowance, which is a supplementary payment that can be received alongside other income. The Carer Payment, however, is means-tested and replaces regular employment income, providing financial assistance for those unable to maintain regular work due to their caring responsibilities.
As of 2025, the government has introduced significant improvements to the system to accommodate the modern caregiver’s lifestyle, acknowledging their contributions more meaningfully through better financial, educational, and employment flexibility.
New Flexibility: Increased Work Hours Limit
Perhaps the most impactful change is the increased work hours limit. Previously, carers could work no more than 25 hours a week. Now, under the 2025 update, carers can engage in up to 100 hours of paid employment over any 4-week period without compromising their eligibility.
Excluded activities—which do not count toward the 100-hour cap—include:
- Formal study or training
- Volunteering
- Travel time to and from work or education
This gives carers the freedom to pursue part-time work or self-employment, upskill, or simply gain additional income without worrying about breaching Centrelink rules.
Example:
Imagine Daniel, who works 12 hours a week as a mobile mechanic and spends another 6 hours volunteering at a local charity. Previously, he risked disqualification. Now, only his paid hours count, giving him more breathing room and peace of mind.
Respite Days: A Lifeline for Emergencies and Extra Hours
Life doesn’t always fit into neat schedules. That’s why the introduction of 63 annual respite days is another game-changer. If you accidentally or temporarily exceed the 100-hour work limit in a given month, you won’t immediately lose your payment. Instead, you can activate one or more of your respite days to maintain eligibility.
You can use respite days:
- During peak caregiving stress
- When working extra hours on a temporary basis
- To attend to personal emergencies or travel
These days offer a cushion to ensure continuous support without penalizing carers for occasional overcommitment.
Higher Income Threshold in 2025
Centrelink has also adjusted the income threshold, allowing more carers to qualify or retain eligibility while working. Starting May 2025, the threshold has increased by 12% to reflect inflation and the rising cost of living.
This is especially helpful for households with dual incomes, carers with part-time jobs, or those earning passive income (like from investments). For complete figures, see the Services Australia income test guide.
Remember: both you and the person you care for must meet eligibility requirements based on assets and income.
Updated Payment Rates: More Money in Your Pocket
To keep up with the cost of living, Carer Payment amounts are adjusted biannually. As of March 20, 2025, the new fortnightly payments are:
| Category | Base Rate | Pension Supplement | Energy Supplement | Total Fortnightly Amount |
|---|---|---|---|---|
| Single | $1,047.10 | $83.20 | $14.10 | $1,144.40 |
| Couple (each) | $789.30 | $62.70 | $10.60 | $862.60 |
Additionally, every eligible recipient will receive a $1,144 Cost of Living Boost, a one-time bonus to help with soaring household costs.
These updates ensure that while carers continue to provide essential services, their financial well-being is not compromised.
Massive Changes to Centrelink Carer Payment Qualify for the Carer Payment
To be eligible, both the carer and the care recipient must meet certain conditions.
General Carer Requirements:
- Be 18 years or older
- Be an Australian citizen, permanent resident, or protected SCV holder
- Live in Australia and meet the residence rules
- Provide daily, constant care in a private home (not institutional care)
Care Recipient Must:
- Have a severe medical condition, disability, or be frail aged
- Require care for at least 6 months
- Be assessed under the Adult Disability Assessment Tool or Child Disability Assessment Tool as applicable
- Use the Carer Payment Eligibility Estimator to get a personalized check before applying.
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Massive Changes to Centrelink Carer Payment Apply
- Gather Documents:
- Valid photo ID
- Medical evidence (from the care recipient’s doctor)
- Proof of income and assets
- Set Up myGov Access:
- Register and link your Centrelink account at myGov
- Apply Online or In-Person:
- Log into myGov and complete your application
- Or visit a local Services Australia service centre
- Submit and Track:
- Expect updates within 3–6 weeks
- Monitor progress in your myGov inbox
FAQs On Massive Changes to Centrelink Carer Payment
Q1: Can I study while receiving Carer Payment?
Absolutely. Study hours are excluded from the 100-hour work limit, making it easier for carers to upskill or change careers in the future.
Q2: What if I exceed the 100-hour work cap?
Use one of your 63 respite days. If you’ve used them all, your payment may be paused—but you can reapply once your hours return to acceptable limits.
Q3: Will the 2025 changes apply to me automatically?
Yes. If you are already on the Carer Payment, these adjustments will roll out without needing reapplication.
Q4: Do I need to report work or income?
Yes. You must continue to report work hours and income via myGov or Centrelink. This ensures you’re paid accurately and remain compliant.
Q5: Can I care for more than one person?
Yes, but Centrelink must assess and approve this. Your total care responsibilities must still meet the constant care requirement.
Voices from the Community
Lena in Melbourne: “The updated income thresholds mean I don’t have to give up my weekend retail shifts. That bit of extra income really helps my family.”
George from Adelaide: “I used to stress every time I needed to work overtime. Now, with the 100-hour cap and respite days, I can plan better and avoid penalties.”
Fatima in Darwin: “With my daughter now attending part-time therapy, I’ve started a course in disability support. Study hours don’t count—what a relief!”
