Last Updated on 25/06/2026 by Daniel G. Taylor
Estimated reading time: 9 minutes
Securing financial support empowers you to provide sustainable, long-term care—and the 2026 carers payment updates give Melbourne families more reason to act.
Families and unpaid carers across Melbourne and the Mornington Peninsula give daily, relentless care to people they love. Many reduce working hours or leave paid work altogether, absorbing an economic blow that ripples through every aspect of their lives.
Two payments exist to address that financial gap: Carers Payment and Carer Allowance. At The SALT Foundation, our Support Coordinators help families claim both, from our activity centres at The Well in Heidelberg West and Asha House in Frankston.
Key Takeaways
- The article discusses the 2026 carers payment updates, providing financial support for Melbourne families and unpaid carers.
- Carers Payment replaces income, while Carer Allowance supplements care costs; both can be received simultaneously.
- From March 2026, single carers can receive $1,200.90 per fortnight under Carers Payment while Carer Allowance will be $162.60 per fortnight.
- Eligibility criteria for Carers Payment include residency, care needs assessment, and income/asset tests; documentation is crucial for successful applications.
- The SALT Foundation assists families with navigating the complexities of applying for Carers Payment and understanding NDIS interactions.
Table of Contents
Carers Payment vs Carer Allowance in 2026
Carers Payment and Carer Allowance serve different purposes, and confusing them costs carers money. Carers Payment replaces income; Carer Allowance supplements the additional daily costs of caring.
From 20 March 2026, the maximum Carers Payment for a single carer reaches $1,200.90 per fortnight—comprising a base rate of $1,079.70, a Pension Supplement of $84.90, and an Energy Supplement of $14.10. Partnered carers receive up to $905.20 each per fortnight.
Services Australia reviews rates twice yearly, on 20 March and 20 September.
Carer Allowance increased to $162.60 per fortnight from 1 January 2026. No assets test applies; the only financial threshold is a household adjusted taxable income cap of $250,000 per year.
Both payments can run simultaneously, and both attract the annual $600 Carer Supplement, paid automatically each July.
The key distinctions
Income replacement vs supplementary support. Carers Payment is income-tested and asset-tested, mirroring the Age Pension framework. Carer Allowance carries no assets test and no work-hours restriction.
Work hours. Carers Payment limits you to 25 hours of work, study, or volunteering per week. Carer Allowance places no such restriction.
Level of care required. Carers Payment demands constant care equivalent to a full working day. Carer Allowance requires daily care for a person with a severe disability or a condition lasting 12 or more months.
Read more about becoming a carer for a family member on the SALT blog, including the early decisions most families face.
Harriet Dixon, Support Coordinator at the SALT Foundation, sees the same gap trip up families again and again. “One of the biggest challenges families face when applying for the Carer Payment is ensuring that the medical evidence fully reflects the reality of the caring situation and the level of support being provided each day,” Dixon says.
“When documentation is incomplete, lacks detail, or understates the impact of a person’s disability, illness, or mental health on daily functioning, claims can often be delayed or declined despite families providing significant ongoing care,” she adds.
Balancing the Carers Payment with the NDIS
Services Australia funds carers. The NDIS funds participants.
Both systems operate independently, but families often feel their interactions are anything but simple. NDIS funding does not affect your eligibility for Carers Payment—but it can change your caring load.
If NDIS support workers take on tasks you previously performed personally, Centrelink may determine your care role no longer meets the constant-care threshold. Review your caring arrangements before any significant change to a participant’s NDIS plan.
NDIS-funded respite does not count toward your 63-day annual respite allowance under Centrelink rules. Families can use NDIS Short Term Respite (STR) supports to take genuine breaks, protecting both their health and their payment eligibility.
We’ve also written a guide to planning accessible family holidays.
SALT’s Support Coordination team works alongside families to simplify what often feels like overwhelming Centrelink and NDIS processes. “Both systems often require similar information—such as identity documents, income details, medical evidence, and information about daily support needs,” Dixon says.
“We help families keep everything organised and easy to reuse across applications, reducing duplication and unnecessary stress,” she explains. “We also support communication with providers and plan managers, and help families understand exactly what information is needed.”
“Our work focuses on mapping NDIS funding and Centrelink requirements together so they complement each other without impacting eligibility,” Dixon adds. That support runs through SALT’s hubs at The Well in Heidelberg West and Asha House in Frankston.
Greg Smith, COO of the SALT Foundation, puts the human stakes plainly. “Behind every unpaid carer is a person making daily sacrifices to support someone they love,” Smith says.
“Across Melbourne and the Mornington Peninsula, carers often carry a heavy emotional, physical and financial burden, frequently without recognition or compensation,” he continues.
“Financial support can make a real difference—not only easing financial stress, but helping carers maintain their own wellbeing and continue providing the care that so many individuals and families rely on,” Smith adds.
Eligibility for the Carers Payment: Five Requirements
Carers Payment eligibility rests on five criteria. Miss one, and your application stalls.
1. Residency. Both you and the person you care for must be Australian residents for the purposes of Services Australia.
2. Assessment of care needs. Adults are assessed using the Adult Disability Assessment Tool (ADAT); children under 16 require a Carer Needs Assessment completed by a health professional. People with terminal illness or frailty of age may qualify without ADAT.
3. Constant care. You must provide ongoing, full-time care—heavy enough to prevent full-time work. The care need not occur in the recipient’s home, but it must be personal and direct.
4. The 100-hour rule. You may work, study, or volunteer for up to 25 hours per week (100 hours over any four-week period), provided caring responsibilities remain your primary focus.
5. Income and asset tests. Both you and the care recipient must meet Centrelink’s income and asset thresholds. From March 2026, the asset limit for single homeowners is $321,500 in non-home assets before the payment begins to taper.
How to Apply for the Carers Payment
Applications move faster when documentation is ready before you begin.
Create or link your myGov account. Connect your myGov account to Centrelink if you have not already done so. The online path is the most direct.
Gather your documentation. Collect medical assessments for the care recipient—ADAT or Carer Needs Assessment, completed by their healthcare provider—along with your income and asset details and evidence of your caring role: hours, intensity, and duration.
Submit your claim. Lodge through myGov, by calling the Disability, Sickness and Carers line on 13 27 17, or in person at a Services Australia centre. Payment typically begins from the date of lodgement—so apply the moment you meet the criteria.
Respond to Centrelink’s requests. Processing takes four to eight weeks. Respond promptly to any request for additional documentation to prevent delays.
If rejected, appeal. Many initial rejections reverse on review when stronger medical evidence accompanies the appeal. Carers Victoria and the Carer Gateway can help you navigate the process.
Frequently Asked Questions
Yes—within limits. Carers Payment allows up to 25 hours of paid work, volunteering, or study per week, or 100 hours across any four-week period.
Exceed that threshold and the payment stops—so track your hours carefully, and report any change in working arrangements to Centrelink before you hit the ceiling.
Yes. Carers Payment comes from Services Australia; NDIS funding flows through the participant’s plan, and the two do not cancel each other out.
The caution: if NDIS-funded supports reduce your personal caring hours significantly, Centrelink may reconsider whether your role meets the constant-care threshold. Speak to a SALT Support Coordinator before making substantial changes to a participant’s support arrangements.
From 20 March 2026, single homeowners can hold up to $321,500 in non-home assets before the payment tapers. Non-homeowners receive a higher threshold.
Your primary residence is generally exempt while you live in it; investment properties and financial assets count toward the limit. Both you and the person you care for must pass the asset test—not just the carer.
Carers Payment stops when the care recipient no longer needs constant care, when you exceed the 100-hour work limit, or when your income or assets cross the relevant thresholds. It also stops if you take more than 63 days of respite in a calendar year without Centrelink approval.
Notify Centrelink before circumstances change—not after.
Carer Supplement is an annual $600 payment, made automatically each July to anyone receiving Carers Payment or Carer Allowance on the qualifying date. Hold both payments and you receive $1,200 in supplement annually.
No separate application is required.
Conclusion: The Support You Provide Deserves Support in Return
Conclusion: Carers Payment and Carer Allowance exist because unpaid caregiving is real, economically costly work. The 2026 rates reflect that recognition—$1,200.90 per fortnight for eligible single carers, $162.60 per fortnight in Carer Allowance, and a $600 annual supplement each July.
Families across Melbourne and the Mornington Peninsula deserve every dollar available to them. The paperwork is complex, but the pathway is clear for those who know where to start.
The SALT Foundation supports carers not as a side function but as a core commitment. Contact our team at The Well in Heidelberg West or Asha House in Frankston, or enquire online today.
Action Steps
- Create or link your myGov account to Centrelink before you begin the application.
- Gather medical assessments (ADAT or Carer Needs Assessment), income and asset details, and evidence of your caring role.
- Confirm you meet the 2026 thresholds via the Services Australia rates page.
- Lodge your claim online, by calling 13 27 17, or in person—then note the date of lodgement.
- Contact The SALT Foundation for Support Coordination guidance on how your NDIS plan interacts with your Centrelink entitlements.
How SALT Can Help
Navigating Centrelink and the NDIS simultaneously is rarely straightforward. SALT’s Support Coordinators at The Well (Heidelberg West) and Asha House (Frankston) help families identify every entitlement available and avoid the paperwork pitfalls that catch most carer payment applications.
Get in touch with the SALT Foundation today.
Daniel G. Taylor has been writing about the NDIS for six years. His focus has been on mental health and psychosocial disabilities as he lives with bipolar disorder I. He’s been a freelance writer for 32 years and lives across the road from a surf beach. He’s the author of How to Master Bipolar Disorder for Life and a contributor to Mastering Bipolar Disorder (Allen & Unwin) and he’s a mental health speaker. In May 2026, he celebrated 25 years without a major manic or depressive episode.