Big changes have arrived for Australians receiving the Carer Payment in 2025. These updates bring more flexibility for carers balancing employment with full-time caring responsibilities.
The revised work hour limits, payment rules, and reporting requirements are designed to ensure that more carers receive consistent support without the fear of losing their entitlements suddenly.
New Work Hour Limit Introduced
As of 2025, carers can now work up to 100 hours over a rolling 4-week period and still receive their Carer Payment. This is a significant increase from the previous rule, which limited carers to 25 hours per week, including unpaid activities such as volunteering or study.
Now, only paid work hours are counted toward the 100-hour threshold. Activities like volunteering, education, and travel to and from work are excluded, giving carers more freedom to pursue part-time work or skill development.
Suspension Instead of Cancellation
One of the most important changes introduced is how Centrelink handles cases where carers exceed the work hour limit or income threshold. Previously, this could result in an immediate cancellation of the Carer Payment, requiring a lengthy reapplication process.
Under the new 2025 policy, exceeding these limits results in a temporary suspension for up to 6 months. During this time, if the carer’s circumstances change and they again meet the eligibility criteria, payments can resume without submitting a new application.
Updated Carer Payment Rates in 2025
The Carer Payment rates have also been adjusted to reflect cost-of-living increases. Below are the current fortnightly rates:
| Recipient Type | Fortnightly Payment |
|---|---|
| Single | $1,149.00 |
| Each member of a couple | $866.10 |
These payments remain subject to income and assets tests, but the new work rules allow recipients to engage in meaningful employment without breaching the criteria.
Read More: Shrinking Pay Hikes Ahead – What’s Holding Back Australia’s Next Wage Increase?
Simplified Reporting Requirements
Carers are still required to report income and paid work hours to Centrelink. However, they no longer need to include:
- Time spent in unpaid voluntary work
- Hours used for study or training
- Travel time related to employment
This simplifies the process and minimizes confusion, ensuring carers focus more on care responsibilities and less on administrative paperwork.
Key 2025 Carer Payment Changes
| Category | Old Rule | New Rule (2025) |
|---|---|---|
| Work Hour Limit | 25 hours per week (includes unpaid time) | 100 hours per 4 weeks (paid work only) |
| Unpaid Activities Counted? | Yes | No |
| If Limit Exceeded | Immediate cancellation | Temporary suspension (up to 6 months) |
| Income & Assets Test | Required | Still required |
The 2025 Centrelink Carer Payment changes are a welcome update for thousands of Australian carers. By increasing the work hour limit to 100 hours over 4 weeks and removing unpaid activities from the calculation, carers now have more flexibility to participate in the workforce.
The shift from automatic cancellation to temporary suspension also ensures better continuity of support. Carers are encouraged to review their current circumstances and take advantage of these updates to maintain both their income and their caring roles.
FAQs
Can I study full-time and still receive the Carer Payment?
Yes, as long as your paid work hours remain within the 100-hour limit over a 4-week period, study hours will not impact your payment.
What if I exceed the work hour limit one month but reduce it the next?
Your payment will be suspended, not cancelled. If your circumstances fall back within the limit within 6 months, payments can resume automatically.
Do I still need to report my work every fortnight?
Yes, you must report paid work hours and income, but you no longer need to include study or volunteer hours in your fortnightly declarations.