The Carer Payment and Carer Allowance are the main payments to claim if you’re caring for someone with a disability, medical conditions or a frail aged adult.
The Carer Payment is an income support payment, like a pension. The Carer Allowance is a fortnightly supplement, which can be paid on top of your regular payment, or it can be paid on its own.
If you’re approaching, or are over, Age Pension age and caring for someone, you may want to consider whether an Age Pension or a Carer Payment is most appropriate for you. Here are a few things to help you work out which would be best.
Paid at the same rate
The Age Pension and Carer Payments are both the same fortnightly rate and subject to the same income and assets test. Both also give you the same Pensioner Concession Card.
If you’re of Age Pension age, Centrelink takes the same things into consideration no matter what payment you’re on. This is especially important to remember if you have any superannuation as your rate of payment may change when you reach Age Pension age. That’s because super in accumulation becomes assessable at Age Pension age.
Carer Supplement
If you get a Carer Payment and a Carer Allowance, you’ll be paid an annual Carer Supplement per payment, that is, one payment for the Carer Payment, and one payment for each person you get a Carer Allowance for.
A Carer Supplement is not paid with the Age Pension. If you transfer to the Age Pension, you’ll only be eligible to receive the Carer Supplement for each person you get Carer Allowance for.
Going overseas
Another thing to consider is overseas travel. If you get a Carer Payment, you’re allowed to travel for up to six weeks before your payment stops. There are some other rules if the person you’re caring for is not going with you, breaks from caring and travelling to an agreement country.
If you get the Age Pension, you can generally travel for as long as you like without your payment stopping, although how much you are paid can vary depending on how long you’re away.
Death of the person you are caring for
If you’re receiving a Carer Payment, this can continue for up to 14 weeks from the date the person you care for passes away. Then you’ll have to consider transferring to another payment such as the Age Pension.
If you’re getting a Carer Allowance, this will simply stop. If you are already getting the Age Pension, you don’t need to do anything else.
Go to the Services Australia website to find a complete list of the differences between the Carer Payment and the Age Pension.
Remember, you can always talk to the Financial Information Service (or FIS) if you’re still unsure. To speak with a FIS officer, call 132 300 and say, “financial information service” when asked why you’re calling.
Do you receive any of these payments? Did you find them hard to apply for? Why not share your experience in the comments section below?
Also read: How deeming affects your Centrelink payments
