In a major development for Australia’s caregivers, Centrelink has announced significant changes to the Carer Payment and Carer Allowance in 2025, aimed at providing much-needed financial support and flexibility. The revamped scheme, designed to benefit those caring for individuals with disabilities, medical conditions, or the elderly, includes increased payment rates, expanded work and study opportunities, and a one-time $600 Carer Supplement. These adjustments come at a crucial time, as carers continue to face rising living costs and the challenge of balancing caregiving with personal and financial goals.
Centrelink Carer Payment: A Boost for 2025
The 2025 increase to the Centrelink Carer Payment represents a pivotal step in recognizing the contributions of carers across the country. Starting this year, single recipients of the Carer Payment will receive $1,149 per fortnight, up from $1,144.40. Meanwhile, couples who are eligible for the payment will now receive $866.10 each per fortnight, a modest yet important increase from the previous rate of $862.60.
This financial support is designed to help carers manage the challenges of full-time caregiving, which can often come with significant financial strain. The increase is part of a broader strategy to address the escalating costs of living, especially in regions where caregiving demands are high, and household budgets are under pressure.
Carer Allowance Sees Increased Rate
The Carer Allowance has also been boosted in 2025, with a new fortnightly rate of $159.30, up from $153.00. This allowance, which is not subject to income or asset testing, provides additional financial relief for carers. Unlike the Carer Payment, which is designed for those providing full-time care, the Carer Allowance is available to a broader group of carers, including those in part-time caregiving roles or those who may not meet the stricter income or asset criteria for the Carer Payment.
New Work and Study Flexibility for Carers
One of the standout features of the 2025 Centrelink Carer Payment update is the expanded work and study flexibility for carers. Previously, carers were limited to working or studying only 25 hours every four weeks. This limitation has now been significantly increased to 100 hours per four weeks, offering carers more freedom to pursue part-time work, training, or education without jeopardizing their eligibility for financial support.
This change is expected to help carers regain a sense of financial independence and career progression while continuing to provide essential care for their loved ones. It’s an important step toward improving the balance between caregiving responsibilities and personal growth.
$600 One-Time Carer Supplement
In an added gesture of support, a $600 Carer Supplement will be available to eligible recipients of the Carer Payment and Carer Allowance during the period between July 3 and August 2, 2025. This one-time payment is designed to help carers cover extra costs associated with caregiving, such as medical expenses, transportation, and necessary home modifications.
Importantly, carers do not need to apply separately for the supplement—if they are already receiving Carer Payment or Carer Allowance during the specified time frame, the payment will be made automatically. This provides immediate relief to carers during a time when financial support is most needed.
How to Apply for Carer Payment and Carer Allowance
Applying for the Carer Payment and Carer Allowance is easy and can be done through myGov. Here’s how:
Create or log into your myGov account: Start by visiting the myGov website and logging in. If you don’t have an account yet, you can create one for free.
Link your myGov account to Centrelink: Make sure your myGov account is connected to Centrelink to manage your payments and applications.
Complete the application: You’ll need to fill out forms for both the Carer Payment and Carer Allowance, providing details about the person you care for, your income, and any supporting medical documentation.
Submit the application: Once your forms are complete, submit them online through your myGov account or by contacting Centrelink directly.
Await Centrelink’s decision: Centrelink will process your application and notify you of the outcome. If successful, you’ll begin receiving your payments.
Who Is Eligible for Centrelink Carer Payments?
To qualify for the Carer Payment, you must:
- Provide full-time care to someone with a severe disability, medical condition, or age-related frailty.
- Meet residency requirements, such as being an Australian citizen or permanent resident.
- Pass the income and assets tests.
- Be aged 16 years or older.
On the other hand, the Carer Allowance does not have income or asset tests, but it is subject to an income threshold. Your adjusted taxable income, along with your partner’s, must be under $250,000 annually.
What’s Next for Carers?
As the cost of living continues to rise, particularly in areas where caregiving is required, these changes to the Centrelink Carer Payment and Carer Allowance are designed to provide ongoing support. The increased flexibility for work and study hours, as well as the generous $600 Carer Supplement, offer a vital cushion for carers who may otherwise struggle to balance financial stability with caregiving responsibilities.
The 2025 update is a testament to the government’s commitment to supporting carers, recognizing their essential role in the health and well-being of those in need. For carers across Australia, these changes provide a sense of relief, empowerment, and the opportunity to create a more balanced and sustainable life while continuing to provide invaluable care.