The Australian Government has introduced significant changes to the Centrelink Carer Payment starting in 2025, which could dramatically reshape who qualifies and how.
These updates are aimed at providing more flexibility for carers while ensuring the program supports those most in need.
However, the new eligibility rules and reporting adjustments could cause many to lose access if they’re not fully informed.
What’s Changing in 2025?
The 2025 overhaul introduces several rule changes that directly affect eligibility, payment suspension, and working hour limits for recipients of the Carer Payment.
Key Rule Changes:
- Work Hour Limit Expanded: Carers are now allowed to engage in up to 100 hours of paid work over a rolling four-week period. This replaces the previous limit of 25 hours per week.
- Non-Counted Activities: Time spent on volunteering, training, studying, or traveling to work is excluded from the 100-hour calculation, making it easier for carers to balance life and caregiving.
- Payment Suspension Instead of Cancellation: If you exceed the work-hour limit and haven’t used respite care days, payments may now be suspended for up to six months instead of canceled outright.
- Retention of Benefits: Carers whose payments are suspended will retain their Pensioner Concession Card, preserving access to healthcare and utility discounts.
Updated Policy Breakdown
Here’s a simplified table comparing the previous and new policies:
| Criteria | Before 2025 | After Overhaul (2025) |
|---|---|---|
| Max Work Hours | 25 hours/week | 100 hours over 4 weeks |
| Volunteering/Study Counted? | Yes | No |
| Payment Penalty | Cancellation | Suspension up to 6 months |
| Concession Card | Revoked after cancellation | Retained during suspension |
Financial Limits and Payment Amounts
To qualify under the new scheme, carers must still meet strict financial thresholds:
- Income Threshold: Must not exceed $140,795 annually before tax.
- Asset Limits: Must remain under $868,500, excluding the family home.
- Carer Payment Rate:
- Single: Up to $1,047.10 per fortnight
- Couple (each): Up to $789.30 per fortnight
These figures are subject to regular indexation, meaning they could slightly shift over time.
Who is Still Eligible?
Despite the flexibility introduced, not everyone will qualify under the new terms. You must:
- Be an Australian resident.
- Be caring for someone with severe medical needs, disability, or aged frailty.
- Be providing care in a private home.
- Pass the income and asset tests.
Additionally, if you plan to increase your work hours or education, it’s important to track your activities closely to avoid breaching the new 100-hour rule.
The 2025 Centrelink Carer Payment overhaul is a mixed bag: while it introduces welcome flexibility and support for working carers, it also adds new complexity that could lead to suspensions or eligibility loss for those unaware of the updated rules.
It’s essential for all current and prospective recipients to carefully review their caregiving hours, financial status, and work arrangements to ensure they remain compliant and continue receiving support.
FAQs
Will I lose my payment if I go over 100 work hours?
No, your payment will be suspended for up to six months. You can still retain your Pensioner Concession Card during this period.
Do I have to report hours spent volunteering or studying?
No, only paid work hours count towards the 100-hour threshold.
Can I get reinstated after suspension?
Yes, as long as you fall back within the eligible criteria, you can request to resume your payments without a full reapplication process.