Carer Payment (CP) and/or Carer Allowance (CA) care receiver commences or returns to work 009-06040080
This document outlines information about the effect on Carer Payment (CP) and/or Carer Allowance (CA) when the care receiver commences or returns to work.
Carer Allowance (CA) (adult)
The adult care receiver may be absent from care to undertake education, training, treatment and paid or unpaid work without an effect on the carer's entitlement to CA, as long as daily care and attention is still being provided by the carer, in a private home that is the home of the carer and/or the care receiver. The care and attention does not have to be substantial, but it cannot be delegated to others.
Carer Payment (CP)
A care receiver may be absent from care to undertake education, training or employment without an effect on the carer's entitlement to CP, as long as 'constant care' is still being provided by the carer. The '25 hour rule' does not apply to care receivers.
Where a carer receiving CP ceases providing care for more than 25 hours per week their eligibility should be reviewed, as it is possible that the qualification of 'constant care' may no longer be met. Each case should be evaluated on its merits to determine continued qualification for CP, and to ensure that constant care is still being provided.
CP qualification would only continue if the care receiver still requires a qualifying level of personal care and/or supervision, and the carer provides the equivalent of a working day of personal care over the 24 hour period. The need to provide constant care at home would have to preclude the carer from undertaking substantial employment.
Note: if the care receiver returns to work and they are no longer in receipt of a Centrelink or a Department of Veterans' Affairs (DVA) income support payment, the care receiver should be assessed to ensure they continue to require a significant level of care and that they meet the care receiver's income and assets test.
If a carer in receipt of CP commences work, refer to Carer Payment (CP) carer undertakes paid employment, self employment, voluntary work, education or training activities
If the care receiver is absent to provide the carer with a break from care, respite care provisions apply, or if the care receiver is in hospital, hospitalisation care provisions may apply.
If the care receiver is imprisoned, this is also considered an absence and the Carer's qualification for payment may continue under respite conditions.
Wife Pension transfer to Carer Payment (XWP)
Constant care does not apply to CP (XWP) - Carer Payment (CP) that is paid under grandfathering provisions for ceased Wife Pension carers. However Temporary Cessation of Care (TCC) (respite and hospitalisation) rules continue to apply to payment level CA as normal. This means that where the care receiver commences or returns to work, a qualifying level of care does not need to be assessed for CP (XWP), but still needs to be met for CA.
If a CP (XWP) carer’s only or last payment level CA is suspended or cancelled for any reason or changed to a CA HCC only, CP (XWP) will be automatically be cancelled. When the carer’s only or last payment level CA is cancelled from the first date the carer ceased providing care and attention, then CP (XWP) will be automatically be cancelled. A carer loses their qualification for CP (XWP) permanently if payment level CA is not reinstated without a gap in entitlement. For more information see Transfer from Wife Pension (WP) to Carer Payment (CP).
The Resources page contains a link to the processing service teams for Carer Allowance/Carer Payment.
Related links
Temporary Cessation of Care (respite) provisions for Carer Payment (CP) and Carer Allowance (CA)
Hospitalisation provisions for Carer Payment (CP) and Carer Allowance (CA)
Carer is absent from caring situation
Carer Payment and /or Carer Allowance care receiver is absent from the caring situation
Carer Allowance (CA) child care receiver undertakes education, training or treatment
Cancellation and suspension of Carer Payment (CP) and/or Carer Allowance (CA)
Coding absences for Carer Allowance (CA) where care of the care receiver is shared
Care receiver permanently enters or temporarily/permanently leaves an institution
Pensions income and assets tests
Transfer from Wife Pension (WP) to Carer Payment (CP)