Carer Payment and Carer Allowance: what you can claim and how

Caring for someone with a terminal illness is a full-time commitment. It often means reducing hours at work, taking leave, or stopping work entirely. The Australian government has two payments specifically for people in this situation: Carer Payment and Carer Allowance.

They work differently, and you may be eligible for both at the same time. This guide explains what each one is, who can claim, and how to apply.

What is the difference between Carer Payment and Carer Allowance?

Carer Payment is an income support payment for people who are unable to work full-time because they provide full-time care. It's means-tested, which means your income and assets affect whether you receive it and how much. The rate is similar to the Age Pension and is paid fortnightly.

Carer Allowance is a supplementary payment for people who provide daily care and attention to someone with a disability or serious medical condition. It's not income-tested, which means most carers qualify regardless of what they earn or own. It's a lower amount than Carer Payment but can be received on top of it.

Many carers receive both. If you've had to reduce your work hours significantly to provide care, Carer Payment is worth assessing first. Carer Allowance is worth claiming regardless, because the income test rarely rules people out.

Who qualifies for Carer Payment?

To receive Carer Payment you generally need to:

• Be providing constant care for someone with a severe disability or medical condition, in a private home (either yours or theirs)
• Be unable to work full-time in paid employment because of your caring role
• Meet the income and assets tests (similar thresholds to other income support payments)
• Be an Australian resident

"Constant care" doesn't mean you need to be physically present every minute. It means the care you provide is equivalent to a full-time commitment and that the person you're caring for needs that level of support.

The person you're caring for also needs to meet a care needs assessment. Centrelink uses a tool called the Adult Disability Assessment Tool (ADAT) to assess this. Your GP and a health professional complete part of the assessment.

For terminal illness, there is often a streamlined or expedited process. Ask Centrelink specifically about terminal illness when you call.

Who qualifies for Carer Allowance?

To receive Carer Allowance you generally need to:

• Provide daily care and attention to someone with a disability or serious medical condition
• Be living with the person you're caring for, or providing care from another residence on a daily basis
• Be an Australian resident

There is no income or assets test for Carer Allowance. You can work full-time and still receive it.

There are two rates: one for adults and one for children. The adult rate is a fortnightly payment. It's not a large amount, but it's worth claiming if you qualify.

How do I apply?

Both payments are administered by Centrelink, through Services Australia.

The fastest way to start is to call Services Australia on 132 717 (the Families line handles carer payments). Explain the situation including the terminal diagnosis. In many cases, Centrelink will expedite processing for terminal illness claims.

You can also apply online through myGov if you have an account linked to Centrelink.

When you apply, you'll need:

• Your personal details and tax file number
• The other person's personal details and tax file number
• Medical evidence of the condition (a letter from the treating specialist works well)
• Information about your current work situation
• Bank account details for payment

For Carer Payment, you'll also need a Treating Health Professional form to be completed by the person's doctor or specialist. This is part of the ADAT assessment.

What happens after I apply?

Centrelink will assess the claim and may contact you for more information. Processing times vary. For terminal illness, you can ask Centrelink to flag the claim as urgent.

Once approved, Carer Payment is paid fortnightly. You'll need to update Centrelink if your income changes significantly or if the care situation changes.

Carer Allowance continues as long as you're providing care. It's reviewed periodically.

What other payments and concessions should I know about?

While you're speaking with Centrelink, ask about:

Carer Supplement -- an annual payment made to Carer Allowance recipients each July. It's paid automatically, but only if you're already receiving Carer Allowance.

Health Care Card -- Carer Payment recipients receive a Health Care Card, which provides discounts on some medications and services.

Commonwealth Carer Respite Centres -- not a payment, but worth knowing. These provide free support to help carers take a break. Centrelink can give you a referral.

What if I am told I do not qualify?

Centrelink decisions can be reviewed. If your claim is rejected and you believe it shouldn't have been, you can request an explanation and ask for an internal review. If you're still not satisfied, you can take the matter to the Administrative Review Tribunal.

Community legal centres and carer advocacy organisations can provide free advice if you need support navigating this.

When should I apply?

Apply as soon as you can. Carer Payment and Carer Allowance are not backdated to before the date of application in most circumstances. Every week you delay is a week of payment you won't recover.

If you're not sure whether you qualify, apply anyway and let Centrelink make the assessment. The process is free and you have nothing to lose.