Kinship care payments in Australia

The short answer

Kinship carers in Australia can usually receive two kinds of support. The first is a care allowance paid by the state or territory child protection department when the child is in formal out of home care. The second is Commonwealth support through Services Australia, mainly Family Tax Benefit, and Carer Allowance where the child has a disability. Rates and rules differ by state.

Sources
A New Tax System (Family Assistance) Act 1999 (Cth)
Social Security Act 1991 (Cth)
NSW Government, Financial support for carers (DCJ Care Allowance)
Services Australia, Support for foster carers and other non-parent carers

State and territory care allowances

Each state and territory runs its own care allowance for authorised or approved carers, and kinship carers on a formal order generally receive the same rate as foster carers. In New South Wales the DCJ Care Allowance is paid fortnightly, is not taxable and is not means tested, with higher levels for children with greater needs. Queensland Child Safety pays a fortnightly caring allowance with age bands plus high and complex support needs allowances. Victoria's DFFH care allowance has several levels based on an assessment of the child's needs. Similar schemes run in South Australia, Western Australia, Tasmania, the ACT and the Northern Territory. Rates are indexed regularly, so check the current table for your state.

Formal versus informal kinship care

This distinction matters a great deal. A state care allowance is normally only available when the child is placed with you through the child protection system, usually under a court order or a formal placement decision. Many grandparents and relatives care for children under private family arrangements with no court order. In most states these informal carers cannot access the care allowance, although some states offer limited support or referral to kinship support services. If you are caring informally and the arrangement is likely to be long term, ask your state department or a kinship care support service about your options before assuming you are not eligible.

Commonwealth payments through Services Australia

Family Tax Benefit under the A New Tax System (Family Assistance) Act 1999 is available to non parent carers, including formal and informal kinship carers, if the child is in your care and you meet the income test. Carer Allowance under the Social Security Act 1991 may be paid if the child has a disability or medical condition requiring substantially more daily care, assessed through a medical report from the treating health professional. Double Orphan Pension and Child Care Subsidy may also apply. State care allowances are generally not counted as income for these payments. Services Australia has Grandparent, Foster and Kinship Carer Advisers who can talk you through what you can claim.

Getting it right

Start with your caseworker or the state department to confirm the child's legal status and which allowance level applies. Then contact Services Australia, ideally through a Grandparent, Foster and Kinship Carer Adviser, and update your care arrangements so Family Tax Benefit is assessed correctly. If the child has a disability, ask the treating doctor or specialist to complete the Carer Allowance medical report early, because assessment takes time. Keep copies of court orders and placement letters, since both the state and Services Australia may ask for them. Review your entitlements whenever the child's order, age or needs change.

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