The Australian government has introduced an increase to the Carer Allowance, a crucial support payment for unpaid carers who provide daily assistance to loved ones with disabilities, medical conditions, or age-related frailty.
Effective from August 1, 2025, this payment now stands at $159.30 per fortnight, up from the previous rate of $153.50.
This financial support is designed not as a wage, but as a supplementary income to help cover caregiving-related costs such as medical expenses, mobility aids, transportation, and more. With over 2.7 million unpaid carers in Australia, this update offers some relief in the face of rising living costs.
What Is the Carer Allowance?
The Carer Allowance is a fortnightly Centrelink payment made to individuals who provide ongoing daily care for someone with a severe medical condition, disability, or age-related issue. This non-taxable and not means-tested payment helps carers manage the extra costs involved with their responsibilities.
Latest Payment Update – August 2025
| Feature | Details |
|---|---|
| Old Payment Rate | $153.50 per fortnight |
| New Payment Rate | $159.30 per fortnight |
| Effective Date | August 1, 2025 |
| Payment Frequency | Every two weeks |
| Means Test | Not applicable |
| Residency Requirement | Must be an Australian resident |
| Additional Supplement | $600 annual Carer Supplement if eligible |
Eligibility Criteria
You may be eligible for the Carer Allowance if you meet the following conditions:
- You are providing daily, substantial unpaid care to someone with a disability, long-term illness, or frailty due to age.
- The person being cared for is expected to need care for at least 12 months.
- Both you and the person you’re caring for must be Australian residents.
- Care can be provided in your home, their home, or elsewhere.
- You do not need to live with the person you’re caring for.
- The care provided must meet the daily assistance threshold—occasional or irregular support does not qualify.
What Makes This Payment Unique?
Unlike other income support payments, the Carer Allowance is not income or asset tested, making it more accessible. Carers can still work, receive other benefits, or study while receiving this allowance.
It also automatically adjusts each year to keep up with cost-of-living pressures through government indexation measures.
How to Check and Claim
It’s important for carers to confirm their payments are accurate and reflect the recent update. Here’s how:
- Log in to your myGov account.
- Navigate to your Centrelink section.
- Select Income Support > Carer Allowance.
- Confirm that your current payment is $159.30 per fortnight.
- If your payment is less, update your details or contact Centrelink directly.
No application is needed for those already receiving the allowance—the increase was automatically applied from August 1, 2025.
Additional Support for Carers
Apart from the fortnightly allowance, carers may also qualify for:
- Carer Supplement – A $600 annual payment issued in July or August for those receiving Carer Allowance as of July 1.
- Child Disability Assistance Payment – If you care for a child under 16 with a disability.
- Access to respite care – You can still receive your payment while taking up to 63 days of respite care per year.
- Carer Gateway services – Access to counselling, education, support groups, and financial planning resources.
Real-Life Examples
- Anna, a full-time mother caring for her child with autism, receives $159.30 fortnightly and qualifies for the annual $600 Carer Supplement and child disability payment.
- David, who works part-time while caring for his elderly father, also qualifies for the payment. Since it’s not income-tested, he continues working while receiving support.
- Mia, who didn’t notice the increase until August, updated her Centrelink details and started receiving the new rate in her next payment cycle.
Key Benefits at a Glance
| Benefit | Details |
|---|---|
| Fortnightly Payment | $159.30 |
| Annual Supplement | $600 |
| Income/Asset Test | Not required |
| Work and Study | Allowed while receiving payment |
| Automatic Increase | Adjusted based on inflation |
| Additional Child Support | Available for carers of disabled children |
The Carer Allowance increase to $159.30 per fortnight is a welcome relief for Australia’s dedicated unpaid carers. Whether you’re caring for a loved one full-time or sharing the responsibility, this payment can provide meaningful financial support to cover the growing costs of caregiving.
Take the time to review your entitlements, update your details if necessary, and ensure you’re receiving every benefit you qualify for. With additional supports like the Carer Supplement and disability payments, staying informed can make a real difference in your financial wellbeing.
FAQs
Is Carer Allowance income-tested?
No, Carer Allowance is not income or asset tested, so you can work or earn while receiving the payment.
How often is the Carer Allowance paid?
It is paid fortnightly, with the current amount being $159.30 per fortnight.
Do I need to reapply for the new rate?
No, if you are already eligible, the increase was applied automatically starting August 1, 2025.