Carers Payment to Undergo Significant Changes in Australia
Services Australia will significantly amend the Carers Payment from March 20, allowing recipients to work or study more hours and providing greater flexibility. Funding of $18.6 million is allocated for this change.
Services Australia has revealed that the Carers Payment is set to undergo a significant change from next month. The Centrelink subsidy is delivered to tens of thousands of Australians who are providing constant care for someone for at least six months.
Currently, a recipient on this payment is only allowed to work or study for up to 25 hours every four weeks. However, the government body is quadrupling this allowance, with the change set to take effect on March 20.
"You will still report your hours each fortnight, but you will not have to report study, training, volunteering or travel time," Services Australia stated.
If a recipient sometimes works more than 100 hours, they'll still be able to use respite days to maintain their payment.
The 2024-25 federal budget has allocated $18.6 million to support this change, which will be rolled out over five years. This funding boost is intended to offer carers "greater flexibility and choice to structure their work commitments around their caring role".
The government acknowledged that the existing 25-hour rule significantly limited the work or study opportunities available to carers, which also hindered their prospects for better employment in the future.
A 2023 study found that 47 per cent of carers on the Centrelink payment indicated they were doing less paid work than they desired, and more than 67 per cent reported low satisfaction with the current rules.
Services Australia estimates that 31,000 Carer Payment recipients who currently work will likely benefit from the impending change.
It is important to note that if a recipient works more than 100 hours during the four-week reporting period, their payments could be suspended for up to six months.
People applying for the Carers Payment are required to undergo income and assets tests to determine their eligibility for the payment. These tests are recalibrated annually on January 1, and the current maximum base rate for a single person on the Carers Payment is $1,047.10.
