Centrelink Carer Payment Work Hours: In a major update that brings much-needed relief to carers across Australia, Centrelink has officially increased the work hour limits for Carer Payment recipients. Starting from 20 March 2025, carers can now engage in paid or self-employed work for up to 100 hours in a 4-week period, without losing access to their Carer Payment. This is a significant shift from the previous limit of just 25 hours per week and is designed to provide more flexibility for carers to earn an income while continuing their vital role in supporting loved ones.
This change reflects the Australian Government’s broader commitment to creating a fairer, more inclusive welfare system that empowers individuals who are dedicating their time to supporting others. By recognising the economic challenges carers face and offering them greater work flexibility, this reform is a step toward better financial independence and mental well-being for caregivers.
Centrelink Carer Payment Work Hours
| Feature | Details |
|---|---|
| New Work Hour Limit | Up to 100 hours over a 4-week period for paid/self-employed work |
| Excluded Activities | Travel time, study, volunteering, and training are not included in the 100-hour cap |
| Payment Amount (Single) | Up to $1,149.00 per fortnight including supplements |
| Payment Amount (Couple – each) | Up to $866.10 per fortnight including supplements |
| Temporary Cessation of Care (TCC) | Can now be used flexibly in single-day increments |
| Suspension Window | Payments may be suspended up to 6 months if the work limit is exceeded, allowing reinstatement |
| Official Link | Services Australia – Carer Payment |
The recent increase in Centrelink Carer Payment work hours marks a positive, progressive step in social support reform. By allowing carers to work up to 100 hours every 4 weeks, and excluding unpaid efforts like study, volunteering, and commuting, the Australian Government is helping to foster both financial security and emotional resilience among carers.
Whether you’re currently on the Carer Payment or considering applying, understanding these new rules can help you plan better, earn more confidently, and care without compromise.
What Is the Centrelink Carer Payment?
The Carer Payment is a vital financial support program provided by Centrelink, a division of Services Australia. It is designed for individuals who provide constant care for someone who has a severe disability, chronic illness, or requires a high level of ongoing assistance due to age or frailty. This support is not only about helping the care recipient but also about ensuring that the carer can meet basic living costs without the pressure of full-time employment.
Carer Payment is different from the Carer Allowance, which is a supplementary payment. The Carer Payment is a full income support payment that can replace the need for regular income for those providing full-time care. Since caregiving responsibilities can be unpredictable and demanding, traditional employment may not always be feasible, which is why eligibility conditions and participation requirements are structured around flexibility and support.
New 2025 Work Limit: What Changed?
Previously, recipients were permitted to engage in up to 25 hours of work, study, or volunteering per week. However, this rigid limit didn’t account for variable schedules or allow for time spent commuting. The revised rule now provides a more realistic framework, allowing carers to:
- Work up to 100 hours in total across any rolling 4-week period (roughly averaging 25 hours per week but with flexibility to vary by week).
- Count only paid or self-employed work toward the 100-hour threshold.
- Exclude time spent on commuting, studying, volunteering, or unpaid training, recognizing that these are not income-generating and shouldn’t be penalized.
This updated approach better aligns with the realities of casual, part-time, or freelance work and supports those balancing employment with caregiving duties.
Who Benefits from These Changes?
These reforms are particularly beneficial to:
- Part-time workers and casual employees who want flexibility to take extra shifts or adjust their hours across weeks.
- Freelancers, contractors, and gig workers whose work schedule and income often fluctuate.
- Carers in remote or regional areas who spend significant time traveling to and from employment.
- Carers pursuing personal development through educational courses or skill-building programs, which are now exempt from work hour counting.
These adjustments make it easier for carers to stay connected to the workforce, enhance their skills, and contribute to their household finances without fear of losing essential benefits.
Real-Life Scenarios
Case 1: Flexible Freelancer
Jenny is a self-employed graphic designer who cares for her elderly father. Some weeks she works 30 hours, others only 15. With the new 4-weekly model, she can work up to 100 hours across that period without worrying about breaching a rigid weekly cap. This allows her to accept more projects and better manage her client deadlines.
Case 2: Rural Commute
Amit travels 1.5 hours each way to work twice a week. Previously, this 6-hour weekly commute was part of his 25-hour cap, limiting his paid work to just 19 hours. Now, travel time doesn’t count, so he can work closer to 25 full paid hours per week while staying compliant.
Case 3: Career Growth
Rebecca, a carer for her child with special needs, wants to complete a 6-month TAFE certification online to improve her job prospects. Under the old rules, study time counted against her participation limit. With study hours now excluded, she can pursue education without risking her Carer Payment.
What Happens If You Go Over 100 Hours?
Exceeding the 100-hour threshold in a 4-week period doesn’t mean you’re permanently disqualified from the Carer Payment. Here’s how Centrelink manages such situations:
- You can use Temporary Cessation of Care (TCC) days to explain short-term increases in work hours. Each carer is allowed up to 63 TCC days per year.
- If you run out of TCC days, your payment may be suspended for up to 6 months, but this isn’t the end of your eligibility. You can request reinstatement once your hours return within the approved limits.
- Even during suspension, you keep your Pensioner Concession Card, and certain associated supports like Rent Assistance may continue depending on your circumstances.
This makes the system more forgiving and accommodating of life’s inevitable changes.
How Much Can You Earn on the Carer Payment?
The Carer Payment is income-tested, which means that while you are allowed to work 100 hours in 4 weeks, the actual amount you earn may affect your payment amount.
As of March 2025, the rates are:
- Single recipients: up to $1,149.00 per fortnight, inclusive of base rate and supplements.
- Couples (each): up to $866.10 per fortnight, inclusive of base rate and supplements.
Keep in mind:
- Income earned through employment (including self-employment) is assessed.
- Your partner’s income may also impact your entitlement.
What Activities Don’t Count Towards the Limit?
The government has clarified that the following activities are excluded from the 100-hour calculation:
- Travel time to and from work.
- Study and educational courses (e.g., TAFE, online diplomas).
- Volunteering roles, even if regular.
- Unpaid training or internships.
This allows carers to engage more meaningfully in personal and professional development without the fear of penalty.
How to Report Your Hours and Income
Centrelink requires all recipients to report any changes to their work hours, income, or caregiving situation within 14 days of the change occurring. Failure to do so may lead to overpayments, which must be repaid, or potential suspension of your payments.
You can report via:
- The myGov portal
- The Centrelink Express Plus mobile app
- Calling the Centrelink helpline
- Visiting a Services Australia service centre in person
Keep accurate records, especially if you’re self-employed. Document work hours, payments received, and any caregiving changes to simplify your reporting.
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FAQs About Centrelink Carer Payment Work Hours
Q1. Can I study and still get Carer Payment?
Yes! Education and training are exempt from the 100-hour limit. You’re free to upskill or complete qualifications while maintaining your payment.
Q2. Will I lose my Carer Payment if I exceed 100 work hours?
Not necessarily. You can use TCC days or have your payment temporarily suspended with the option to reinstate it later.
Q3. How is self-employment income calculated?
Centrelink assesses your gross income (before tax and deductions). Make sure to maintain invoices, logs, and receipts.
Q4. Can I mix paid work and volunteering?
Yes, volunteering is excluded from the hour limit, so you can combine both without penalty.
Q5. Where can I manage or apply for the Carer Payment?
Go to Services Australia’s Carer Payment page to apply or manage your existing claim.
