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

Carers can participate in one or more of the above activities and still qualify for CP, provided the total time they are away from their care receiver to participate in these activities (including travel time) does not exceed 25 hours per week.

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
• are not required to report their activity hours, but temporary cessation of care rules may still apply
• are still required to report their and/or their partner’s employment income if they and/or their partner receive an income support payment

CA is not taxable or assets tested, but 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.

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 via the service if they temporarily exceed the 25 hours per week rule.

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, they will be advised to contact Services Australia and will not be able to finish their update.

Carers who have commenced work, returned to work or have ceased employment are able to 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 has given customer permission to enquire
• receives Age Pension (Blind) or Disability Support Pension (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, 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, genuine attempts must be made to transition customers to report via self-service options, unless an exception applies.

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 temporary cessation of care (TCC) 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. These are recorded as ‘Care Not Met’.

Cancel CP from the date they exceed 25 hours per week (as recorded on the Carer Payment Activity Summary (CPAS)/ Carer Payment Activity Details (CPAD) screen) if:

• excluding paid employment hours, the carer’s other activity hours away from the care receiver exceed 25 hours per week, and
• they will exceed 25 hours on an ongoing basis

See Working Credit for the effect of a Working Credit balance greater than zero.

The 25 hour rule and:

• CP new claims:
• CP claims will be rejected if the carer is participating in any activity or combination of activities that exceeds 25 hours per week on their start date
• TCC days can only apply when CP is granted
• encourage carers to reclaim when they become qualified
• CA carers:
• if a carer receives CP and CA, use the code RCP to ensure each system maintains an accurate count of absence days used for CP and CA
• the RCP code only counts against the balance of temporary cessation of care (TCC) days for CP only

Carers who expect to exceed 25 hours per week on:

• an ongoing basis must have their CP cancelled as they cannot utilise the TCC provision to remain qualified. See Working Credit for the effect of a Working Credit balance greater than zero
• a temporary basis can choose to access their TCC days for participating in an activity or a combination of activities
• an occasional basis are treated as ‘temporarily’ exceeding. If a carer is using their TCC entitlement, they may participate in activities in excess of 25 hours per week for the TCC period

See the Resources page for examples of applying the 25 hour rule.

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

To be able to use TCC days to remain qualified, TCC must be applied for the entire week (7 days) the carer exceeded 25 hours, even if the activity did not occur each day.

Carers must decide if they want to:

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

If the carer decides to use their TCC days but CP is cancelled because they exhaust their respite balance, they can still reclaim CP with no remaining TCC days for the rest of the calendar year.

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

Constant care and the 25 hour rule do not apply to CP (XWP):

• CP (XWP) carers do not need to report their activity hours
• staff do not need to assess CP (XWP) carers under the 25 hour rule
• CP (XWP) cannot be cancelled for this reason

TCC (respite and hospitalisation) rules apply to payment level CA as normal. CP (XWP) carers who are not providing additional care and attention each day can continue to be paid CA by using their TCC (respite and hospitalisation) days.

Do not record any respite codes that only relate to CP for any TCC days for a carer receiving CP (XWP).

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

If a carer has commenced working and states they wish to have their CP cancelled, and do not want to give further details, the 25 hour rules do 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)

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 would be 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 usual CP ‘constant care’ qualification does not have to be met when the carer commences or increases their activity hours:

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

Hours are still recorded on the Carer Payment Activity Summary (CPAS)/ Carer Payment Activity Details (CPAD) screen but TCC is not required to be recorded.

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

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.

Work Bonus

A Carer Payment customer cannot deplete the Work Bonus if their activity hours, including employment income, exceeds 25 hours per week.

Carer Payment must be cancelled, unless exceeding 25 hours is temporary and the carer utilises their temporary cessation of care provisions.

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 remain current at nil rate for up to 12 consecutive fortnights, retaining 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 TCC days

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

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.

Go to and follow the instructions in Income and expenses of a business to make this assessment.

See the Resources page for care scenarios and assessing CP when a carer operates as a family day provider from their home.

See the References page for links to the Social Security Guide on the assessment of income from child care.

See 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
• via Express Plus applications
• via 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, genuine attempts must be made to transition customers to report via 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, 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 be placed on 2 weekly reporting
• asked to update their activity hours for paid work, voluntary work, study and training if they are not CP XWP carers. 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 stimulus 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 per week rule temporarily

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 can contact Services Australia directly. They need to contact Services Australia directly to advise their activity hours including travel time away from their care receiver. When self-employment activity hours have been recorded, staff can update these using the Earnings and reporting tool. Carers are unable to update their self-employment activity hours via self-service.

If CP is cancelled because the hours exceed the limit and the hours subsequently drop below the limit, the carer can re-claim 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.

If the 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 government and non-government organisations, including assistance relating to 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.