Best Kinship Care Support for Pensioners Raising Grandchildren in Australia
If you are on the Age Pension or Disability Support Pension and raising a grandchild, you may qualify for Family Tax Benefit (up to $235.48 per fortnight for a child aged 0–12 under Part A) and Additional Child Care Subsidy — Grandparent (up to 100 hours of subsidised childcare per fortnight, with the activity test waived). FTB and ACCS Grandparent can be available alongside your pension, but ACCS subsidises approved childcare costs rather than paying cash. FTB requires at least 35% care; ACCS Grandparent requires a principal grandparent carer with at least 65% care and a qualifying income support payment.
Being on a pension is actually an advantage in this system, not a barrier. Services Australia may pay the maximum FTB Part A rate if you or your partner receive an eligible income support payment and that payment is not reduced to zero because of employment. Eligible ACCS Grandparent recipients do not have to meet the Child Care Subsidy activity test. Eligibility still depends on your care arrangement and the relevant payment rules.
The Full Payment Stack for Pensioner Grandparents
Here is every Commonwealth payment a pensioner grandparent may be able to claim, with the 2026–27 rates:
| Payment | 2026–27 Rate | Means Tested? | Reduces Your Pension? | Key Requirement |
|---|---|---|---|---|
| FTB Part A | Up to $235.48/fn (0–12) or $306.46/fn (13–15) per child | Family income test applies; income support may qualify an eligible family for the maximum rate | No | 35% or more care of the child |
| FTB Part B | Up to $200.34/fn (youngest under 5) or $139.86/fn (youngest 5–18) | Eligible single carers may receive the maximum rate if income ≤$124,327 | No | One payment per family |
| FTB Supplements | Up to $970.90 (Part A) + $478.15 (Part B) per year | Household income ≤$80,000 for Part A supplement | No | Paid after end-of-year reconciliation |
| ACCS Grandparent | 100% of childcare fee (up to 120% of CCS rate cap), 100 hrs/fn | No activity test | No | Grandparent on income support, 65%+ care |
| Double Orphan Pension | $81.60/fn per child | Non-means-tested | No | At least 35% care and one condition: both parents deceased; one deceased and the other in prison for 10+ years, confined indefinitely in a psychiatric institution or nursing home, or of unknown whereabouts; or refugee child whose parents are both outside Australia or unknown |
| Carer Allowance | $162.60/fn per child | Non-means-tested | No | Child under 16 has a severe disability or medical condition |
Combined example for a single grandparent on the full Age Pension raising one grandchild aged 8:
- Age Pension: $1,237.70/fn (single maximum rate before tax, effective 20 September 2026)
- FTB Part A: $235.48/fn (maximum rate, if eligible under the income-support rule)
- FTB Part B: $139.86/fn (maximum rate for an eligible single carer with youngest child aged 5–18)
- ACCS Grandparent: subsidy for up to 100 hours/fn of approved care, subject to the hourly rate cap
- Total fortnightly income: $1,613.04 before tax and supplements, plus subsidised childcare
That is about a 30% increase over the Age Pension alone, before any supplements. FTB amounts remain subject to eligibility and end-of-year reconciliation.
Why Pensioners Have an Easier Path Than They Think
Your pension helps establish income-support eligibility. Receiving an eligible income support payment may qualify you for the maximum FTB Part A rate if the payment is not reduced to zero because of employment. Other income, care percentage, and FTB eligibility rules still matter.
No activity test for ACCS. Working-age carers must satisfy an activity test (work, study, or volunteering) to access higher hours of subsidised childcare. Pensioner grandparents bypass this entirely through the ACCS Grandparent pathway. You get 100 hours per fortnight of fully subsidised care without proving any activity.
Non-taxable payments stack. Carer Allowance ($162.60/fn) and Double Orphan Pension ($81.60/fn) are both non-taxable and non-means-tested. They do not reduce your pension, do not count as income for FTB, and do not need to be reported in your tax return. They simply add to your household income.
State carer allowances are also exempt. If you are or become a formally approved kinship carer receiving the Queensland state caring allowance ($652.40 to $763.98/fn depending on the child's age), those payments are tax-exempt and excluded from the Centrelink income test. They do not touch your pension. (Note: informal carers — those without Child Safety involvement — cannot access state allowances in Queensland.)
The Interactions That Catch People Out
FTB Part B secondary earner test. If you have a partner who works, FTB Part B starts reducing once the secondary earner's income exceeds $7,154 per year, cutting out completely at $35,661 (youngest child under 5) or $27,777 (youngest 5–18). This matters for partnered grandparent carers where one is on the pension and the other still works.
Maintenance Income Test. If the child's parent is paying child support (either informally or through the Child Support Agency), the maintenance income can reduce your FTB Part A. However, if seeking child support would put you or the child at risk — for example, if the birth parent is violent or their whereabouts are unknown — you can apply for a maintenance action exemption.
Pension earnings cap. If you do any paid work alongside your pension, your pension reduces once your fortnightly income exceeds the Work Bonus threshold ($300/fn exempt, plus a Work Bonus income bank of up to $11,800). This does not affect your FTB or ACCS, but it does affect your total household income for FTB Part A assessment purposes. Most pensioner grandparents are not working, but if you are, be aware of the interaction.
Care percentage and shared care. If the child spends time with the birth parent — weekends, holidays, or any regular arrangement — the care percentage affects your FTB rate. At 35% care you receive a portion; at 100% care you receive the full rate. Services Australia calculates this based on the care arrangement you declare and any evidence from the other party.
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State-Level Support (Queensland)
The state adds another layer, though it is limited for informal carers:
If you are a formally approved kinship carer (approved by Child Safety under the Child Protection Act 1999): you receive the fortnightly caring allowance ($652.40 to $763.98 per fortnight, indexed annually) plus potential extras — establishment payment ($702.94 one-off), extracurricular activities boost ($1,500/year), and high or complex support needs allowances if the child qualifies. All tax-exempt, all excluded from Centrelink income tests. These stack on top of your pension and FTB.
If you are an informal carer (no Child Safety involvement, no court orders): you cannot access any Queensland state carer allowance. Your financial support comes entirely from Commonwealth payments. The main Queensland programme for informal grandparents is Time for Grandparents (1300 135 500), which provides emotional support, peer groups, respite camps, and activity brokerage funding for school camps and sports fees — not a direct financial payment, but it covers costs the state allowance would if you were in the formal system.
Who This Is For
- Grandparents on the Age Pension or Disability Support Pension who have taken on a grandchild and are trying to stretch a fixed income to cover a child's needs
- Pensioner carers who are already claiming FTB but did not know about ACCS Grandparent, Carer Allowance, or Double Orphan Pension
- Partnered grandparents where one is on a pension and the other works, trying to understand how the secondary earner test affects their payments
- Anyone helping an elderly grandparent navigate the payment system — adult children, social workers, community workers
Who This Is NOT For
- Working-age carers not on an income support payment — ACCS Grandparent requires a qualifying pension or income support payment; the standard CCS pathway applies instead
- Non-grandparent relatives (aunts, uncles, siblings) — ACCS Grandparent is specifically for grandparents; other relatives access the standard CCS 3-Day Guarantee
- Carers outside Australia — the rates and programmes described are Australian Commonwealth payments
- People seeking financial planning advice — this covers government entitlements, not investment or superannuation decisions
Getting Started
The Queensland kinship carer guide covers the full payment stack for all four demographic scenarios — pensioned grandparent, working-age relative, Indigenous kinship arrangement, and rural or remote carer — with step-by-step claiming instructions, evidence checklists, and the agency decision matrix that shows which office handles what. The phone scripts are particularly useful for pensioner grandparents who prefer to claim by phone rather than through myGov.
Start with the free one-page checklist at /au/queensland/kinship-carer-support/ to see the coverage. Full refund, no time limit — email [email protected] if the guide does not help.
If you want to talk to a human first, call the Centrelink Grandparent Adviser Line on 1800 245 965. It is free, it is staffed by specialists, and they understand pension interactions.
Frequently Asked Questions
Will claiming Family Tax Benefit reduce my Age Pension?
Receiving FTB does not reduce your Age Pension. Services Australia assesses FTB separately under its care and income rules; an eligible income support recipient may get the maximum Part A rate if their income support payment is not reduced to zero because of employment.
Do I need to report FTB to the tax office?
FTB itself is not taxable income and does not need to be included in your tax return. However, you do need to lodge a tax return (or confirm your income through a non-lodgement advice) each year so that Services Australia can reconcile your FTB entitlement and pay the end-of-year supplements. If you do not reconcile, you may have to repay FTB advances.
Can I get ACCS Grandparent if I receive the Disability Support Pension instead of the Age Pension?
Yes. ACCS Grandparent is available to grandparents receiving any qualifying income support payment, including the Age Pension, Disability Support Pension, Carer Payment, and JobSeeker Payment. The key requirements are that you are a grandparent (not another relative), you receive one of those payments, and you provide at least 65% of the child's care.
What happens to my Pensioner Concession Card if I start receiving FTB?
Your Pensioner Concession Card is not affected by receiving FTB. You also receive a Health Care Card for the child if you are getting maximum rate FTB Part A, which gives the child access to discounted medicines and other concessions.
How does the 3-Day Guarantee affect grandparent carers?
From January 2026, all CCS-eligible families receive at least 72 subsidised hours per fortnight (3 full days per week) without any activity test. This is the baseline for everyone. If you qualify for ACCS Grandparent, you get 100 hours at a higher subsidy rate. If you do not qualify for ACCS Grandparent (for example, if you are an aunt rather than a grandparent, or you are not on an income support payment), the 3-Day Guarantee still gives you subsidised childcare without needing to prove work or study hours.
My grandchild has a disability. Can I get Carer Allowance on top of everything else?
Yes. Carer Allowance ($162.60/fn in 2026) is non-means-tested and non-taxable. It stacks on top of your Age Pension, FTB, and ACCS without reducing any of them. The child must have a severe disability or medical condition requiring daily care beyond what a child of the same age normally needs, documented by their treating health professional.
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