Australia’s Carer Allowance continues to play a vital role in supporting thousands of Australians who provide daily care to loved ones with disabilities, medical conditions, or who are frail aged.
For 2025, the Carer Allowance payment has been updated to reflect indexation adjustments in line with the rising cost of living. The new rate of $159.30 per fortnight helps ease financial strain on carers as they perform essential caregiving duties.
In this article, we explain the latest payout amount, eligibility requirements, income limits, and how to claim the Carer Allowance 2025. If you’re a carer or helping someone navigate government benefits, read on to ensure you’re informed about the most recent updates.
What Is the Australia Carer Allowance?
The Carer Allowance is a non-taxable income supplement paid by the Australian Government to eligible people who provide daily care and attention to someone with a disability, severe medical condition, or frailty due to ageing.
It is not income-tested, meaning many carers can receive it in addition to other income streams or pensions. It is paid fortnightly to eligible recipients and is designed to assist with the additional costs associated with caring duties.
Latest Carer Allowance 2025 Payout Amount
From January 2025, the indexed rate for the Carer Allowance has been set at $159.30 per fortnight per eligible care recipient.
In addition to the fortnightly payment, recipients may also qualify for the annual Carer Supplement, a lump sum of $600 per eligible care receiver, paid automatically in July each year.
Current Payment Summary (as of 2025):
| Payment Type | Amount | Frequency |
|---|---|---|
| Carer Allowance | $159.30 | Fortnightly |
| Carer Supplement (Annual) | $600 | Yearly (July) |
These amounts will remain in effect until the next scheduled indexation, which typically occurs in January and July each year.
Who Is Eligible for the $159.30 Carer Allowance in 2025?
Eligibility for the Carer Allowance depends on both the care recipient’s medical needs and the carer’s responsibilities.
The Carer Must
- Be providing daily care and attention to someone with a disability, medical condition, or frailty due to ageing.
- Provide care in their home or in the home of the care recipient.
- Be an Australian resident living in Australia.
- Meet the income test thresholds (explained below).
The Care Recipient Must
- Have a permanent or long-term medical condition or disability that results in significant care needs.
- Undergo a care needs assessment, typically conducted by Centrelink or an authorised medical professional.
Carer Allowance Income Test 2025
While the Carer Allowance itself is not means-tested, there is an income threshold applied to determine eligibility:
| Household Type | Income Limit (Adjusted Taxable Income – ATI) |
|---|---|
| Single | $250,000 per year |
| Couple | $250,000 combined per year |
If your adjusted taxable income (ATI) is below these thresholds, you may qualify for the payment. Importantly, family assets or savings are not considered under this income test.
How to Claim the Carer Allowance 2025
You can claim Carer Allowance through the following simple process:
- Apply online via your myGov account linked to Centrelink.
- Complete the required Carer Allowance Medical Report with the care recipient’s doctor or specialist.
- Submit your claim and supporting documents through myGov or by post.
- Wait for Centrelink to process your claim — usually within 21–42 days.
Note: If you are already receiving Carer Allowance, you do not need to reapply each year unless your caring circumstances change.
When Will You Receive the $159.30 Carer Allowance?
Payments are made fortnightly, usually on the same regular payment day determined when your claim is approved.
Carer Allowance Payment Schedule (Typical Cycle):
| Payment Due Week | Payment Date Example (2025) |
|---|---|
| Week 1 | 14 January 2025 |
| Week 3 | 28 January 2025 |
| Week 5 | 11 February 2025 |
| Week 7 | 25 February 2025 |
| … | Continues fortnightly |
Carer Supplement is paid automatically in July, typically mid-month, without requiring a separate claim.
Important Benefit Updates in 2025
Several key updates to the Carer Allowance program took effect in 2025:
- The base Carer Allowance payment increased to $159.30 per fortnight due to annual indexation.
- The income test threshold was maintained at $250,000, ensuring continued accessibility.
- The government reaffirmed the automatic payment of the $600 Carer Supplement in July 2025.
- Streamlined online application processes now make claiming easier via myGov.
These adjustments aim to ensure that Carers continue to receive adequate financial support despite increasing costs of living.
The $159.30 Australia Carer Allowance in 2025 provides meaningful financial support to carers across the country. With an indexed payment amount and annual supplement, this benefit remains a critical lifeline for those providing vital care to family members. If you think you may be eligible, check your income level and apply through myGov today.
FAQs
Can I receive both the Carer Allowance and the Age Pension?
Yes, you can receive both the Carer Allowance and other income support payments such as the Age Pension, as the Carer Allowance is a non-taxable supplement.
Will my Carer Allowance stop if my income exceeds the threshold during the year?
If your income exceeds $250,000 (ATI), you may lose eligibility for the Carer Allowance. It is important to notify Centrelink if your income changes.
Do I need to reapply for the Carer Supplement each year?
No, the Carer Supplement ($600) is paid automatically each year in July to those who are eligible for Carer Allowance or certain other carer payments as of 1 July.