Carer Payment and Carer Allowance are two important payments made by the Australian Government to provide financial support to people who provide care to a person with a disability or medical condition. Both payments are designed to help carers manage the costs associated with providing care to a loved one. However, there are important differences between the two payments that should be understood before applying for either of them.
What is Carer Payment?
Carer Payment is a fortnightly payment that is available to carers who provide an approved level of care for someone with a disability or medical condition, and are able to meet certain income and asset tests. Carer Payment is a taxable payment and is paid at the same rate as the Age Pension.
The carer must provide at least 35 hours of care per week to a person with a disability or medical condition. The person receiving care must also have a disability, medical condition or be aged 65 or over, and receive a Department of Human Services (DHS) income support payment.
What is Carer Allowance?
Carer Allowance is a non-taxable, fortnightly allowance that is available to carers who provide an approved level of care for someone with a disability or medical condition. Carer Allowance is paid at a different rate than the Age Pension and is not means tested.
The carer must provide at least 14 hours of care per week to a person with a disability or medical condition. The person receiving care must also have a disability, medical condition or be aged 65 or over, and receive a Department of Human Services (DHS) income support payment.
Carer Payment and Carer Allowance are both important payments that provide financial support to carers who provide an approved level of care to someone with a disability or medical condition. It is important to understand the differences between the two payments before applying for either of them, as each has its own eligibility requirements and payment rates.
Caring for another person can be a rewarding, but challenging experience. For those providing care to relatives or friends who have a disability, it’s essential to familiarise yourself with the payments and allowances available.
In Australia, financial support for carers is available in the form of two payments: Carer Payment and Carer Allowance. While being important sources of income for individuals providing care, there are some important differences between these two payments.
Carer Payment provides financial support to people who are caring for someone with a disability who have a profound physical, intellectual or psychiatric disability or need help with their daily tasks. Carer Payment is eligible to both full time and part-time carers who have reached reliable levels of care as assessed by the Department of Human Services. The payment is an income and assets test-free payment and can be paid while living overseas.
Carer Allowance is an additional payment to help with the cost of caring for a person at home who has a disability or medical condition. Unlike Carer Payment, Carer Allowance is not income or assets tested, does not result in a reduction in social security benefits, and does not affect Centrelink income support payments. Carer Allowance is not meant to cover living expenses such as food, rent and household bills and is only available to those living in Australia.
Both Carer Payment and Carer Allowance are important sources of income for carers, and while they have some similarities they have some key differences. It’s important to note that the individual needs of a carer are taken into account and the right payment can be found through the Australian Government Department of Human Services.