Caring for someone with a disability, illness, or age-related needs is a big responsibility, and it can strain your finances. Thankfully, Australia’s Carer Allowance provides a helping hand with a tax-free payment of $159.30 per fortnight in 2025.
Administered by Services Australia (Centrelink), this support runs through December 31, 2025, with a new rate coming in January 2026. Here’s your complete guide to the Carer Allowance, including eligibility, payment schedules, and how to apply.
What Is the Carer Allowance?
The Carer Allowance is a fortnightly payment for Australians who provide daily care to someone with a disability, medical condition, or terminal illness. It’s designed to ease the financial burden of caregiving, covering everyday expenses like transport or medical supplies.
Key features:
- Amount: $159.30 per fortnight.
- Tax Status: Completely tax-free.
- Compatibility: Can be received alongside other benefits like Carer Payment or Disability Support Pension.
- No Asset Test: Only an income test applies.
Carer Allowance 2025: Key Details
| Particulars | Details |
|---|---|
| Payment Name | Carer Allowance |
| Year | 2025 |
| Administered By | Services Australia / Centrelink |
| Amount | $159.30 per fortnight |
| Tax Status | Tax-free |
| Eligibility | Carers of disabled, aged, or medically unfit persons |
| Income Limit | $250,000 (combined pre-tax income for carer & partner) |
| Asset Test | Not applicable |
| Next Rate Adjustment | January 1, 2026 |
Who Can Get the Carer Allowance?
To qualify, both the carer and the person being cared for must meet specific requirements.
Carer Eligibility
- Be an Australian resident living in Australia.
- Provide daily care at home (in your home or the care recipient’s).
- Have a combined annual income (with your partner) under $250,000.
- Carers of children under 16 automatically receive a Health Care Card.
Care Receiver Eligibility
- Be an Australian resident.
- Require daily care for at least 12 months (or have a terminal illness).
- Have their condition verified by a medical professional.
- Receive care in their own home or the carer’s home.
Payment Schedule for 2025
The Carer Allowance is paid every 14 days directly into your nominated bank account. For example, if your payment is due on September 15, 2025, the next one arrives on September 29, 2025.
You can check exact dates through:
- Your Services Australia online account.
- The myGov app.
- The Centrelink Express Plus app.
How to Apply for the Carer Allowance
Applying is straightforward, and you can do it online or in person.
Steps to Apply Online
- Log into your myGov account linked to Centrelink.
- Find the Carer Allowance claim form.
- Enter details about yourself and the person you care for.
- Upload supporting documents, like medical reports and income details.
- Submit the application and track its progress online.
Alternatively, visit a Services Australia service centre for in-person assistance.
Benefits of the Carer Allowance
This payment offers real support for carers:
- Financial Relief: $159.30 per fortnight helps with daily costs.
- Tax-Free: Keep every cent of the payment.
- Health Care Card: Carers of kids under 16 get extra benefits like discounted healthcare.
- Flexible Support: Combine with other Centrelink payments like Family Tax Benefit or Carer Payment.
Tips for a Smooth Application
- Gather Documents Early: Have medical reports and income details ready.
- Check Income Limits: Ensure your combined income stays below $250,000.
- Apply Promptly: Early applications avoid payment delays.
- Use myGov: Track payments and update details easily online.
FAQs About the Carer Allowance Australia 2025
1. How much is the Carer Allowance in 2025?
The Carer Allowance is $159.30 per fortnight, paid directly into your bank account.
2. Is the Carer Allowance taxable?
No, the payment is completely tax-free.
3. Can I get Carer Allowance and Carer Payment together?
Yes, you can receive both if you meet the eligibility criteria for each.
4. Is there an asset test for the Carer Allowance?
No, only an income test applies, with a combined income limit of $250,000 per year.
5. What happens to the payment after December 31, 2025?
The rate will be reviewed and adjusted for inflation starting January 1, 2026.
6. Can I get Carer Allowance for caring for multiple people?
Yes, you may qualify for multiple allowances if you care for more than one person, subject to assessment.
Final Thoughts
The $159 Carer Allowance in 2025 is a vital lifeline for Australians who dedicate their time to caring for loved ones. With its tax-free status, fortnightly payments, and compatibility with other benefits, it offers real financial relief. If you’re providing daily care, check your eligibility on myGov, gather your documents, and apply through Services Australia. This support can make a big difference in managing the challenges of caregiving.