How does the Carer Payment income test work?
Carer Payment uses the same income test as the Age Pension. Your income, and your partner's if you have one, is assessed each fortnight, and your payment reduces once you earn above the income free area until it cuts out entirely. There is also a separate income and assets test for the person you care for if they do not receive a pension.
Social Security Act 1991 (Cth)
Services Australia, Income and assets test for Carer Payment
Social Security Guide 3.6.4.120, Care receiver income and assets tests
Social Security Guide 4.2.5, Carer Payment income and assets tests
The pension income test
Carer Payment is a pension under the Social Security Act 1991, so it uses the pension income test and assets test. Services Australia looks at your gross income from all sources, including wages, self employment, deemed income from financial investments, rental income and some overseas income. Your partner's income is included if you are a member of a couple. Income up to the income free area does not affect your payment. Above that, the payment tapers down at a set rate per dollar until it reaches zero at the cut off point. The cut off figures differ for singles and couples, are indexed several times a year and are published on the Services Australia website.
The care receiver test
Carer Payment has an extra test that most other pensions do not. If the person you care for does not receive a social security pension or income tested payment, they must pass a care receiver income and assets test, which looks at their taxable income for the previous financial year and the value of their assets. The Social Security Guide describes this as the CRIA test. It applies to most children and to adults who are not on a pension. The limits are separate from your own test and are also indexed each year. If the care receiver already gets a pension such as the Disability Support Pension, this test does not apply.
How the income and hours rules interact
The income test runs alongside the participation rule, which now allows up to 100 hours of paid work over four weeks. Both must be met. You can be under 100 hours and still lose payment because your earnings are above the cut off, or be under the income limit and still lose payment because you worked too many hours. Since 20 March 2025, if your income stays above the cut off or your hours exceed the limit, payment is suspended for up to six months rather than cancelled, and can restart if things change. Report your income each fortnight through your Centrelink online account and update Services Australia when your hours change.
What counts as income and what to check
Income for the pension test is broader than wages. Financial assets such as bank accounts, shares and managed funds are deemed to earn a set rate of income regardless of what they actually return. Superannuation is generally not counted until you reach Age Pension age or start drawing an income stream. Gifts, lump sums and compensation payments have their own rules. Before you claim or take on extra work, use the current figures on the Services Australia website to estimate the effect, and if you receive a lump sum or your partner's income changes, tell Services Australia within the required reporting time. The Social Security Guide published by the Department of Social Services explains the policy detail behind each test.
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