Carer Allowance (CA) income reviews 009-18090411

The CA income test is based on the annual Adjusted Taxable Income (ATI) of the carer (and their current partner, if applicable). If the carer has a partner, they must both provide income details for the same financial year.

To be eligible for CA and CA Health Care Card (HCC only), the combined ATI must be less than $250,000 a year. This income limit applies if the carer is single or has a partner.

Carers are exempt from the CA income test if they or their partner receive:

• an income-tested Centrelink or Department of Veterans' Affairs (DVA) Income Support Payment (ISP)
• Family Tax Benefit (FTB) paid in fortnightly instalments, or
• a Commonwealth Seniors Health Card (CSHC)

A CA income test review may be started:

• manually by a staff initiated manual review, when:
  • the customer has advised of a change in circumstance, or
  • there is no online option if the CA income review has been manually issued
• automatically by an online review and can be completed by the customer online. Note: automatic/online CA income test reviews are not currently being generated

Reviews are delayed for carers living in disaster declared postcodes until the disaster rule is lifted.

A staff initiated CA income review may be required when the customer contacts the agency advising of a change in circumstances.

Examples of when staff must manually issue a review include where the customer has notified:

• they or their partner now has an account-based income stream, and the account holder is 60 years of age or older, see Adding or updating an account-based income stream
• their ATI for the previous tax year was over the limit (these details may already be recorded on the Carer Allowance Adjusted Taxable Income (CAATI) screen
• the customer is requesting a reassessment of their (and their partner’s) adjusted taxable income (ATI)
• they have recently become partnered, and their new partner is not in receipt of an income support payment

Staff must initiate a review if they determine that a change in circumstances is affecting the customer’s ongoing eligibility for Carer Allowance, due to their ATI, regardless if the customer has not advise one of the examples above.

Note: the automatic/online CA income test review is currently paused.

These reviews were automatically issued when one of the following occurred:

• the carer has lost their exemption from the CA income test
• it cannot be determined if the carer has an exemption from the CA income test
• the carer has been linked to a new partner. Note: a review is not required if the carer becomes single, widowed, divorced or separated
• data-matching with income stream providers identified an undisclosed account-based income stream, and all the following applies:
  • the account holder is 60 years or older
  • the new product is added, and
  • either current ATI information or current information is held but the ATI and deemed income is over the limit
• data matching with the Australian Taxation Office (ATO) triggered the review

Carers may be prompted to provide the following supporting documents:

• details of income stream product (SA330) form or a similar schedule
• documents and an explanation to verify the change in circumstances which led to their income (or their and their partner’s combined income) being lower in the current financial year

If prompted, these documents are required before the carer can submit their review.

When the CA income review is finalised, the result will either be:

• continuation of CA, or
• cancellation of CA

If CA (child) is cancelled, the CA Health Care Card will also cease. Cancellation will be due to one of the following:

• excess income
• a current year estimate not being accepted
• failure to reply to correspondence, or
• a customer’s request

If the review determines that the carer:

• continues to meet the income test, they will not receive an outcome letter
• does not meet the income test, they will receive written notification of the payment cancellation and their review and appeal rights