Carer Allowance income test 2026

How much you can earn before Carer Allowance reduces, and how fast it tapers above the free area.

This is an income limit, not a taper. You qualify if your adjusted taxable income is under the limit — the payment doesn't reduce gradually.

Income at which Carer Allowance stops
Situation	Payment reduces to nil at
Annual adjusted taxable income limit (carer and partner, combined)	$250,000 /fortnight

Carer Allowance is not tapered like most payments. It uses a pass-or-fail income limit based on your family's combined adjusted taxable income for the year.

If your combined income is under the limit, you get the full Carer Allowance. If it is over the limit, you get no Carer Allowance at all. Because there is no gradual reduction, being just over the limit means the whole payment stops.

Adjusted taxable income is more than just your salary. It includes some other amounts, such as reportable fringe benefits and net investment losses. See our adjusted taxable income page for what counts.

More on Carer Allowance

Estimates and general information only — not financial advice. Check Services Australia for your circumstances.

Rates current as of 1 January 2026. Source: DSS / Services Australia. Last checked 17 July 2026.