How much can you earn while receiving a carer’s payment?

Kevin wants to know what the rules are regarding work and carers’ payments.

How much can you earn while receiving a carer’s payment?

Today marks the beginning of National Carers’ Week and Kevin wants to know what the rules are regarding work and carers’ payments.

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Q. Kevin
I understand you can work for up to 25 hours a week while caring. I am presently receiving a fortnightly payment for caring for my elderly mother in her home. My question is, if I were to get a paying job working less than the 25 hours as stipulated above, at what point does it affect my payments and to what degree? If I were to earn $450 per week gross for between 15 and 20 hours work, what reduction would there be to the payment? I am currently receiving $460 per week for caring. Any information would be appreciated.

A. The carer payment is subject to the same means testing as the Age Pension.

Exceeding the fortnightly income limit will see your payment reduced by 50 cents for every $1 over the limit, until you reach the disqualification limit.

If you are single, you can earn up to $174 per fortnight before your payment will be affected. For a couple combined you can earn up to $308 before your payment will be affected. Once you go over thee thresholds your payment will reduce by 50 cents for every $1 over the limit.

Once you earn over $2040.80 per fortnight as a single or $3122 as a couple combined, you will no longer be eligible for the payment.

To answer your question, if you were to earn $450 per week, you would still continue to receive a carer’s payment, but the amount you receive would be reduced.

Are you eligible for an Age Pension? Do you know your rights? The RetirePlanner™ tool has all the information you need.

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    COMMENTS

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    Bren
    14th Oct 2019
    12:10pm
    Hi Kevin, it looks like you currently get the full single carer's pension of $933.40 a fortnight. To work out what it will be if you earn $450 a fortnight you simply subtract 450 from 2040.80 and divide by 2 to get $795.40 a fortnight. That's a loss of $138 a fortnight of carer's pension but an increase of $450 from working, leaving you $312 a fortnight better off.

    By the way, the $174 figure mentioned above is already included in the $2040.80, which comprises 2 times the fortnightly pension (1866.80) plus $174.
    mogo51
    14th Oct 2019
    3:48pm
    That is the best answer I have ever seen on this site Bren, maybe they should give you a job. Simple, easy to understand and informative, thank you.
    Bren
    14th Oct 2019
    7:51pm
    Hi again Kevin.

    I just noticed you said $450 per week, not fortnight.

    New calculation :$2040.80 minus 900 = 1140.80. After division by 2 that gives you only $570.40 + 900 = 1470.40/fortnight.

    As the full pension is $933.40, that means you are $537 ahead , before tax.

    $1470.40 *26 fortnights in a year = $38,230.40 pa. which is over the tax free threshold.

    However, as you receive a pension you would be eligible for the Senior's and Pensioner's Tax Offset (aka SAPTO), which will reduce your tax payable.
    Bren
    14th Oct 2019
    7:51pm
    Hi again Kevin.

    I just noticed you said $450 per week, not fortnight.

    New calculation :$2040.80 minus 900 = 1140.80. After division by 2 that gives you only $570.40 + 900 = 1470.40/fortnight.

    As the full pension is $933.40, that means you are $537 ahead , before tax.

    $1470.40 *26 fortnights in a year = $38,230.40 pa. which is over the tax free threshold.

    However, as you receive a pension you would be eligible for the Senior's and Pensioner's Tax Offset (aka SAPTO), which will reduce your tax payable.
    Bren
    14th Oct 2019
    12:10pm
    Hi Kevin, it looks like you currently get the full single carer's pension of $933.40 a fortnight. To work out what it will be if you earn $450 a fortnight you simply subtract 450 from 2040.80 and divide by 2 to get $795.40 a fortnight. That's a loss of $138 a fortnight of carer's pension but an increase of $450 from working, leaving you $312 a fortnight better off.

    By the way, the $174 figure mentioned above is already included in the $2040.80, which comprises 2 times the fortnightly pension (1866.80) plus $174.
    older&wiser
    14th Oct 2019
    2:06pm
    DON'T FORGET.... you then pay tax on the combined amount of pension and wage.
    Oldchick
    14th Oct 2019
    1:54pm
    What a great incentive for older people to work - NOT! I’m on a DSP and have just started a job where I work 8 hours per week and earn $200. Sure, I still have a bit of extra money but I also lose some pension. So much for trying to keep or get oldies into the workforce. This greedy, useless Government are clueless of the real world. People go back to work because they’re struggling to manage on what they get now. Meanwhile these pigs have their snouts at every turn - massive salaries, travel, freebies left right and centre, huge pensions with perks that continue infinitim, even when they leave their plumb job in parliament to head straight into another with a huge salary. Then they collect both concurrently. Yet they’ll cut the pension back 50c for every dollar over $174 per fortnight. Maybe it comes under the heading of Religious Persecution considering our righteous leader is such a noble Man of God.
    John
    3rd Jun 2020
    10:06pm
    Hi there
    John
    3rd Jun 2020
    10:11pm
    Hi there how Much Ican earn from work still get carers payment Iam couple . Example if earn 300 a week from work. Thanks


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