Carers in Australia are bracing for significant changes to how Centrelink supports them. In 2025, the government has rolled out updates affecting Carer Payment eligibility, income rules, supplements, and more flexible working allowances.
If you provide care to someone with disability, illness or age-related frailty, these reforms could impact your income, your ability to work part time, and your financial planning. In this article, we break down exactly what’s new — what’s stayed the same — and what you should do to stay protected.
🧾 What Is the Carer Payment?
The Carer Payment is a Centrelink benefit for individuals who provide full-time daily care to someone with a serious disability, medical condition, or who is frail due to age. Because caring can limit your ability to work, this support helps carers maintain financial stability.
To receive it, you generally must satisfy:
Care recipient medical requirements (severity, longevity)
Residency and Australian citizenship/permanent status conditions
Income and assets tests
Participation rules (i.e. limits on paid work hours)
Alongside this, many carers also get the Carer Allowance, a smaller supplementary payment to help with everyday costs of caring (travel, equipment, therapy, etc.).
🔄 Key 2025 Changes & Updates
Here are the major changes introduced in 2025 that carers need to know:
1. Payment Increases via Indexation
To keep up with rising costs, Centrelink is indexing several social security payments, including Carer Payment. As of mid-September 2025, singles on Carer Payment received an increase in fortnights of around $29.70. Couples also saw combined increases of $44.80.
These automatic adjustments happen regularly — no application needed.
2. Deeming Rate Adjustments
Deeming rates (used to assess income from financial assets) have also been updated. The lower rate rose from 0.25% to 0.75%, while the upper rate increased from 2.25% to 2.75%. This affects how much deemed income you may be assessed to have, which can impact your Carer Payment entitlements.
3. More Flexible Work Hours for Carers
Previously, carers were capped at relatively few hours of paid work per week if they wanted to keep their Carer Payment. Under new rules, carers can now work up to 100 hours over a four-week period without risking loss of payment.
Additionally:
Studying, training, volunteering, and travel no longer count against participation (work) limits.
If you temporarily exceed the limit, the payment may be suspended (not cancelled outright) for up to six months.
“Cessation of care” days may be allowed — short periods where you can’t care temporarily without losing eligibility.
These changes give carers more flexibility to maintain skills, income, or education while caring.
📈 New Payment Rates (Fortnightly)
As per updates and reporting:
Single Carer Payment (including supplements): approximately $1,178.70
Carer Allowance (supplement): $159.30 per fortnight
Couples receiving Carer Payment see combined rates based on proportional payments to each partner, depending on their circumstances.
These rates include: base allowance + Pension Supplement + Energy Supplement, where applicable.
✅ What’s Not Changing
While many aspects are evolving, some rules continue:
You still must satisfy income and assets tests.
The medical and care requirements of the person you support remain strict.
Your care must be ongoing and substantial (often many hours per week).
You must report changes in your circumstance (work, assets, relationship, etc.) via MyGov / Services Australia.
👥 Who Benefits Most — And Who Might Be Affected
Beneficiaries
Carers who want to maintain part-time work or training
Carers whose assets or savings place them near the eligibility limits
Those relying on regular indexed increases to match inflation
Those Under Risk
Carers with higher investment assets (because of deeming changes)
People who already pushed hours limits and now may have to restructure work
Some couples whose combined income/assets place them near thresholds
🛠 What Carers Should Do Now
1. Check your MyGov / Centrelink profile
Make sure your bank, contact, and care recipient details are current.
2. Review your work and asset position
Higher deeming rates can shift eligibility. Be realistic about where your finances stand.
3. If you exceed old work caps, reconsider before overcommitment
You now have more flexibility, but overshooting can still cause suspensions.
4. Monitor your payments in October 2025
Payment adjustments from indexing should appear automatically.
5. Seek advice if unsure
Reach out to Carers Australia, legal aid, or social workers — ambiguous cases are common.
People Also Ask (FAQs)
How much did the Carer Payment increase in 2025?
About $29.70 extra per fortnight for single carers; couples saw combined increases of $44.80.
What are the new deeming rates?
Lower rate: 0.75%; upper rate: 2.75%.
Can a carer now work more hours without losing payment?
Yes — you can now work up to 100 hours over four weeks without jeopardising the Carer Payment.
Do I need to apply for the higher payment?
No, indexation and rate changes are automatic based on your current status.
Does the Carer Allowance change?
No major change has been reported to Allowance itself — it continues as a supplement to help with extra caring costs.
🏁 Conclusion
The 2025 changes to Centrelink’s Carer Payment reflect acknowledgment that carers deserve more flexibility, more support, and better alignment with the cost-of-living. While not all concerns are addressed (especially for those with higher assets), many carers will benefit from indexes, updated deeming, and looser work limits.
If you’re a carer — now’s the time to review your eligibility, update your Centrelink details, and plan for the next pay fortnight carefully. These reforms are steps in the right direction, but staying informed is your best protection.
