Carer Payment (CP) and Carer Allowance (CA) carer undertakes paid employment, self employment, voluntary work, education or training activities 009-06030030

From 20 March 2025, carers who receive CP:

• can participate in paid work, including self-employment, for 100 hours over a 4-week period instead of 25 hours per week. This will no longer include training, studying, volunteering or travel time
• can use single days of respite where they temporarily exceed 100 hours in a 4-week period
• may be able to enter an extended suspension period for up to 26 weeks where they have:
• temporarily exceeded the 100 hour work limit and do not want to use respite to offset their excess hours
• exhausted respite or hospitalisation days
• exceeded the 100 hour work limit on an ongoing basis, or
• income from their employment or self-employment that reduces their rate to nil

There are no changes to CA.

See the Resources page for details about:

• Care scenarios
• Other changes from 20 March 2025, and
• FAQs

Carers can still qualify for CP and participate in:

• paid employment
• self employment
• voluntary work
• education
• training activities

To still qualify for CP the total time they are away from their care receiver to participate in these activities (including travel time) cannot exceed 25 hours per week. This is known as the 25 hour rule.

From 20 March 2025, to qualify for CP the total time they are away from their care receiver to participate in paid employment or self employment cannot exceed 100 hours in a 4-week period. The 100 hour work limit does not include travel time. This is known as the 100 hour work limit.

Carers who are paid CA and not CP:

• can participate in these activities and still qualify for CA if they provide at least some additional care and attention to the care receiver every day
• still need to report their and/or their partner's employment income if they and/or their partner receive an income support payment
• do not need to report activity hours
• must report any respite or hospitalisation absences

CA is not taxable or assets tested, but it is subject to an adjusted taxable income test. The income test applies to both levels of entitlement, CA payment level and CA Health Care Card only for a child care receiver.

See Carer Allowance (CA) income test.

CA rules will not change as part of the 20 March 2025 changes.

Carers can report employment income, volunteer work, training or study activities and the number of hours they worked per week (including travel time) online, using the Report employment income service. Carers can also access respite days through the service if they temporarily exceed the 25 hour rule or 100 hour work limit.

Notification reporters can update their employment and caring activity details using the Report employment income service. However, where activity hours change from week to week or the carer exceeds the 25 hour rule/100 hour work limit, they will be advised to contact Services Australia and will not be able to finish their update.

Carers who have started or returned to work, or have ceased employment can update their employment status through their Centrelink Online account or Express Plus Centrelink mobile app. This service automatically places them onto, or turns off, their 2 weekly reporting requirement.

Eligible customers can also update their partner's employment status when the partner:

• does not receive an income support payment
• who receives an income support payment other than Disability Support Pension (DSP) has given customer permission to enquire
• receives Age Pension (Blind) or DSP (Blind) with Rent Assistance

Carers can use the Manage income and assets online service to notify their self-employment income and hours. However, they need to contact directly to advise their hours for CP purposes.

Carers and their partners can also report using phone self-service. However, if the carer's activity hours exceed 25 hours per week or the 100 hour work limit, the caller is:

• transferred to the Carer line if during business hours, or
• asked to contact Services Australia outside business hours

If carers use the Manage income and assets online service to notify employment income paid in a foreign currency, they will be advised to contact Services Australia.

Before assisted reporting is completed, Service Officers must make genuine attempts to transition customers to report through self-service options, unless an exception applies.

From 20 March 2025, customers can still report their employment hours in the 'Report employment income' service. Some changes to the questions will occur to align to the new rules.

When applying the 25 hour rule, consider:

• the total number of hours the carer participates in their activities each week, away from their care receiver, and
• if they exceed 25 hours per week, whether this is temporary or ongoing

Consider both aspects to determine if the carer may use their available respite days to remain qualified.

Note: the hours the carer spends away from their care receiver to participate in these activities counts towards the 25 hours.

Carers who expect to exceed 25 hours per week on:

• an ongoing basis must have their CP cancelled as they cannot use the respite provision to remain qualified
• a temporary basis can choose to:
• access their respite days for participating in an activity or a combination of activities, or
• have CP cancelled
• an occasional basis are treated as 'temporarily' exceeding

The 25 hour rule and:

• CP new claims:
• if the carer is participating in any activity or combination of activities that exceeds 25 hours per week on their start date, consider Early claim provisions. Otherwise, CP will be rejected
• respite days can only apply when CP is granted
• encourage carers to reclaim when they become qualified
• CA carers:
• the 25 hour rule does not apply to CA

The Resources page has examples of applying the 25 hour rule.

The 100 hour work limit considers the total number of hours a carer participates in paid work away from their CP care receiver in a 4-week period.

Carers who exceed the 100 hours work limit on:

• an ongoing basis cannot use respite days to remain qualified. They may be able to access the extended suspension period (if eligible), or have CP cancelled
• a temporary basis they may choose to use respite days to remain qualified, or access the extended suspension period (if eligible), or have CP cancelled

The 100 hour work limit and:

• CP new claims:
• if the carer participates in paid work (including self employment) that exceeds 100 hours in a 4-week period on their start date, consider Early claim provisions. Otherwise, CP will be rejected
• respite days can only apply when CP is granted
• encourage carers to reclaim when they become qualified
• CA carers:
• The 100 hour rule does not apply to CA

The EXSP allows for the suspension of CP for up to 26 weeks (6 months) where all of the following criteria have been met. The carer:

• would have been cancelled because of:
• temporarily exceeding the 100 hour work limit and they do not want to use respite to offset their excess hours
• exhausting respite or hospitalisation days
• exceeding the 100 hour work limit on an ongoing basis, or
• income from their employment or self employment reducing their rate to nil
• resides in Australia, and
• remains eligible qualified for all other reasons

If the carer does not meet the above criteria or loses eligibility for another reason, such as exceeding the asset limit, or no longer providing care, they are not eligible to enter the EXSP. In these cases, their CP must be cancelled.

See the:

• Process page for more details about suspending or cancelling
• Resources page for examples of applying the 100 hour rule

Carers who are temporarily exceeding the 25 hour rule or 100 hour work limit can use their respite days to remain qualified where they have respite days available. A carer loses qualification when their respite days have been exhausted.

Carers must decide if they want to:

• use their available respite days now and remain qualified, or
• suspend/cancel CP so their respite days remaining for the calendar year are still available if they reclaim

If CP is cancelled because they exhaust their respite balance, they can reclaim CP with no remaining respite days for the rest of the calendar year.

When coding respite for previous calendar years, check the remaining respite days in the relevant calendar to identify if the allowable respite period will be exceeded. This will result in CP cancellation and an overpayment.

From 20 March 2025, carers who are temporarily exceeding the 100 hour work limit can use respite days to remain qualified, where they have respite days available. A carer loses qualification when their respite days have been exhausted.

To use respite days to remain qualified, respite will only be applied to the hours above the 100 hour work limit.

Each day of respite can offset up to 8 hours and 0 minutes of excess hours.

Note: respite does not need to be applied for the full 4-week period.

As statement reporters contact each fortnight, they may exceed the 100 hour work limit in the first fortnight of their 4-week period. In these cases, respite days should be applied during this report, and not wait until the end of the 4-week period. If respite is applied in the first fortnight, all hours worked in the second fortnight are assessed as exceeding the limit.

The Resources page has examples of applying respite days under the 100 hour work limit rules.

CP (XWP): are not subject to:

• the 25 hour rule, or
• 100 hour work limit (from 20 March 2025)

See Transfer from Wife Pension (WP) to Carer Payment (CP).

If a carer starts working and states they want to cancel their CP, and does not want to give more details, the 25 hour rule or 100 hour work limit does not apply. CP will be cancelled voluntary withdrawal/surrender of payment and the carer will not be able to access:

• Working Credit balance (if under Age Pension age)
• Work Bonus (if over Age Pension age), or
• employment nil rate period (when still eligible for CP but income, which includes some employment income, excludes payment)

There is no change to the ability to request the cancellation of CP from 20 March 2025.

See Cancellation or suspension of Carer Payment (CP) and Carer Allowance (CA).

If a carer is paid for the care they provide, this does not disqualify them from CP. For example, if a carer is a paid nurse, their paid employment hours spent with the care receiver would be recorded as 'Care Is Met'.

Income paid to the carer is assessable under the pension income and assets test and may mean that CP is not payable. The carer must continue to meet all CP qualification criteria including 'constant care'.

If they receive payment for caring, as opposed to reimbursement of costs, this is considered a 'commercial arrangement' whether or not the caring occurs in a person's own home. If a partner or another person is paid to provide the care, this is also considered a commercial arrangement.

Income received by the carer as reimbursement of costs is exempt from the pension income and assets test. The Resources page has paid care scenarios showing how income is assessed.

The carer does not have to meet the usual CP 'constant care' qualification when they start or increase their activity hours:

• during the bereavement period, or
• following the care receiver's permanent admission to a care institution

The normal income and assets rules still apply, which means the carer's rate of payment may be affected by their income.

There are no changes to the CP constant care exemptions under the 100 hour work limit, from 20 March 2025.

A carer's employment income is coded and assessed under the pensions income test. The carer may be entitled to:

• access Working Credit if under Age Pension age, or
• use the Work Bonus if over Age Pension age

Working Credits

CP will cancel from the date the carer's Working Credit is depleted to nil if all the following apply:

• excluding paid employment hours, the carer's other activity hours away from the care receiver are within the 25 hour limit
• their activity hours including paid employment exceed 25 hours per week
• they have a Working Credit balance greater than nil, and
• they are not taking advantage of respite. For example, they will exceed 25 hours on an ongoing basis, they choose not to use respite or respite balance is exhausted

Note: this includes when Working Credit has not yet started to deplete because they have not yet been paid employment income.

There is no change to the way Working Credit is applied under the 100 hour work limit.

Work Bonus

A CP customer cannot deplete the Work Bonus if their work hours exceed the 25 hour rule or 100 hour work limit.

There is no change to the way Work Bonus is applied under the 100 hour work limit.

See Carer Payment (CP) processing in the Earnings and reporting tool.

Where the carer or their partner's employment income reduces their fortnightly rate to nil and they remain qualified for CP, the carer may stay current at nil rate for up to 12 consecutive fortnights. They will retain access to extras such as the Pension Concession Card (PCC) and Family Tax Benefit (FTB).

Carers remain qualified for CP if they:

• do not exceed 25 hours per week in total hours for their activities away from their care receiver, or
• exceed 25 hours per week temporarily and use respite days

Note: respite must still be recorded if the carer exceeds 25 hours per week temporarily.

There is no change to the employment nil rate period and the requirement to report hours under the 100 hour work limit.

From 20 March 2025, there is no change to carers accessing the Employment Income Nil Rate period. However, if a carer reaches the end of the employment nil rate period, they may be eligible to have their CP suspended for a period of 26 weeks from the date their payment rate reduced to nil.

If a carer has income from the provision of child care services, whether formally through a family day care scheme, or informally through baby-sitting (in the carer's home or the child's home), the income must be assessed as self-employment income.

To make this assessment, see Income and expenses of a business.

See:

• The References page for links to the Social Security Guide on the assessment of income from child care
• The Resources page for care scenarios and assessing CP when a carer operates as a family day provider from their home
• Business deductions about allowable deductions for expenses

If the carer advises they or their partner have any employment income (including ongoing or variable employment income), they will generally be required to report their income details every 2 weeks. This includes carers who are currently notification reporters. Carers can report:

• online
• through Express Plus applications
• by phone self service
• verbally, or
• in writing

If the carer's partner is in receipt of an allowance and is on variable lodgement of the Application for Payment (SU19), they will be returned to 2 weekly lodgement.

Before assisted reporting is completed, Service Officers must make genuine attempts to transition customers to report through self service options, unless an exception applies.

See Recording and correcting employment income details for when 2 weekly reporting is required.

Notification reporters who advise of employment income directly to Services Australia should be manually placed on 2 weekly reporting, regardless of whether this is regular or variable. Some exceptions apply. See Determining the Date of Event (DOV) for employment income.

Carer notification reporters who use the Reporting employment income online service will be:

• automatically placed on 2 weekly reporting
• asked to update their activity hours for paid work, voluntary work, study and training. This will be applied to their record
• advised to contact the agency if they report activity hours more than 14 days in the past as the update will be unsuccessful

As carer notification reporters with employment income will be placed on 2 weekly reporting, they will have the opportunity as statement reporters to:

• report activity hours that are different from week to week for their reporting period, and
• choose to use respite when exceeding the 25 hour rule or 100 hour work limit temporarily

There will be no changes to reporting requirement under the 100 hour work limit, however, some changes to the questions will occur to align to the new rules.

Carers who want to notify of a start or change in their self-employment income can:

• use the Manage Income and Assets online service, or
• contact Services Australia directly

Carers need to contact the agency directly to advise their activity hours including travel time away from their care receiver. When self-employment activity hours have been recorded, Service Officers can update these using the Earnings and reporting tool. Carers cannot update their self employment activity hours through self service.

There will be no changes to reporting requirement under the 100 hour work limit, however some changes to the questions will occur to align to the new rules.

If CP is cancelled because the hours exceed the limit and the hours later are below the limit, the carer can reclaim using the abridged process. Carers can claim online or with help from a Service Officer using the Assisted Customer Claims (ACC) workflow.

CP care receivers who have recorded qualifying medical data, will be considered to have satisfied the medical eligibility requirements if claiming within 26 weeks of cancellation. First Contact Service Offer (FCSO) will identify if medical reports are required to support the claim for CP.

If the:

• carer's CP is cancelled, they may no longer be exempt from the CA income test. The carer will remain exempt if they or their partner receive another qualifying payment or card
• carer is no longer exempt from the CA income test and Adjusted Taxable Income (ATI) details were not provided in the same financial year as they lost their exemption, a CA income review will be triggered. See Carer Allowance (CA) income reviews

Carers are eligible for assistance from various Australian Government and non-government organisations. This includes assistance about employment and general support with their caring role. See Employment assistance for carers in receipt of Carer Payment and/or Carer Allowance and Support services for carers.