If you're providing full-time or significant care to someone with a terminal illness, Centrelink has two payments specifically for carers. This guide explains the difference between Carer Payment and Carer Allowance, who qualifies, and how to apply.
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 provide constant care and can only do limited paid work because of it. 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. There is no assets test, but there is an income test based on your and your partner's combined adjusted taxable income. The test does not apply if you already receive an income-tested payment from Centrelink or DVA. Services Australia publishes the current threshold on its Carer Allowance page. 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 checking too. Its income limit is set high, and Services Australia publishes it on its Carer Allowance page.
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 the private home of the person you care for (you do not have to live with them)
- Do no more than a limited amount of paid work (Services Australia sets the current limit, measured over a 4-week period)
- Meet the pension income and assets tests. The income and assets of the person you care for can also be tested, unless they already get an income support payment
- 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. You answer a carer questionnaire, and a health professional treating the person completes a medical report.
If a doctor certifies that the person is in the final phase of a terminal illness and not expected to live more than 3 months, the care needs questionnaires are not needed. Mention the terminal diagnosis 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 assets test for Carer Allowance, and you can work full-time and still receive it. There is an income test, based on your and your partner's combined adjusted taxable income, though it does not apply if you already receive an income-tested payment from Centrelink or DVA. Services Australia publishes the current threshold.
It is paid fortnightly at the same rate whether you care for an adult or a child. 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 Disability, Sickness and Carers line. Explain the situation including the terminal diagnosis.
You can also apply online through myGov if you have an account linked to Centrelink.
When you apply, Services Australia will tell you what to provide. It usually includes:
- Your personal details and tax file number
- The other person's personal details
- A medical report completed by a health professional treating the person
- Information about your current work situation
- Bank account details for payment
For both payments, the medical report is a Services Australia form called the Carer Payment and/or Carer Allowance Medical Report. It forms 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 lump sum paid automatically each July for each eligible carer payment. You can receive it if you get Carer Payment or Carer Allowance (or both) for a period that includes 1 July, so if you get both payments you receive two supplements. You don't need to apply. Services Australia publishes the current amount and that year's payment dates on its Carer Supplement page.
Health Care Card: issued if you receive Carer Allowance for someone under 16, to help with that child's medicines and health care. Carer Payment recipients receive a Pensioner Concession Card instead.
Carer Gateway: not a payment, but worth knowing. It replaced the old Commonwealth Respite and Carelink Centres and is now the national entry point for carer support, including respite, counselling, coaching and practical help. Call 1800 422 737, or see the respite care guide.
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 organisations may be able to help if you need support navigating this.
When should I apply?
Payment usually starts from the date you lodge your claim, and in most circumstances it is not backdated, so starting early matters.
If you're not sure whether you qualify, Centrelink makes the assessment, and claiming is free.
Platform tools
- Your checklistEvery task across all five stages of the journey, gathered in one place so nothing is forgotten.
- Document vaultStore the will, power of attorney, advance care directive, and other important documents securely in your account. Available to members.
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Pierre started 18December after his partner Mark was given a terminal diagnosis, when they mapped out everything that needed to happen at the kitchen table. He reviews the guides to keep them honest, plain, and genuinely useful. About 18December
Last reviewed 10 October 2026
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