Carer Allowance for a Grandchild in Australia

When a grandchild in your care has a physical, intellectual, or psychiatric disability, Carer Allowance adds a fortnightly payment on top of whatever pension or Family Tax Benefit you already receive. It's not means-tested against assets, it's not taxable, and it can be paid alongside other eligible Centrelink payments — but the medical evidence requirements are strict and specific.

What Carer Allowance Pays

Carer Allowance (Child) currently pays $162.60 per fortnight. On top of that, you automatically receive two annual lump sums each July:

• Carer Supplement: $600 per year per qualifying child
• Child Disability Assistance Payment: $1,000 per year per child under 16

That's $5,827.60 per year in total for one child — paid in addition to your Age Pension, FTB, or other eligible income support.

The only income test is a household adjusted taxable income cap of $250,000 per year. There is no assets test at all. Most grandparent carers on a pension or low income will clear this threshold easily.

The Medical Evidence You Need

An NDIS plan does not automatically qualify a child for Carer Allowance. You need Centrelink's specific medical form, completed by the child's treating health professional.

For a child under 16, you need:

• Form SA431 — Carer Payment and Carer Allowance – Medical Report for a child under 16 years, completed by the child's doctor, paediatrician, or specialist
• Form SA394 — Care Needs Assessment for a child under 16 years, completed by you as the carer

For a child aged 16 or over, you need:

• Form SA332A — Medical Report for a person 16 years or over, which uses the Adult Disability Assessment Tool (ADAT) scoring system

The medical report needs to detail the child's functional impairment and the level of daily care you provide. A one-line diagnosis isn't sufficient — the assessing doctor needs to describe how the condition affects daily activities, personal care, mobility, or behaviour management.

NDIS Doesn't Automatically Mean Carer Allowance

Having an NDIS plan is strong supporting evidence, but it doesn't trigger automatic Carer Allowance approval. The NDIS funds therapies, equipment, and support workers through individualised plans. Centrelink's Carer Allowance requires its own statutory medical report (SA431 or SA332A) to establish that the child's disability creates a substantial daily care load on you specifically.

If the child is already receiving NDIS services, ask their treating specialist to complete the Centrelink medical forms at the same appointment — the clinical information overlaps significantly, and it saves booking separate visits.

Carer Allowance vs Carer Payment

These are two different things:

• Carer Allowance is a supplement — $162.60 per fortnight, payable on top of any other income support
• Carer Payment is a primary income support payment — a higher rate (comparable to Age Pension) but you can't receive it at the same time as another primary payment like Age Pension or Disability Support Pension

Most grandparents already on the Age Pension or DSP should claim Carer Allowance rather than switching to Carer Payment. The pension rates are typically higher, and Carer Allowance stacks on top without affecting your pension rate.

If you're not currently receiving any income support, Carer Payment may be worth considering — it has separate eligibility rules, so compare those with the support you currently receive before applying.

How to Claim

Start through myGov linked to your Centrelink account, or call the Grandparent, Foster and Kinship Carer Adviser line on 1800 245 965. You'll need:

• The completed SA431 or SA332A medical form
• Your completed SA394 care needs assessment if the child is under 16
• Proof that the child lives in your care (your existing FTB determination works)

Arrange the required medical forms promptly and follow Services Australia's instructions for submitting them with your claim.

Our Centrelink Payments for Grandparents guide includes a Carer Allowance evidence checklist alongside the full claim sequence, so you can prepare the medical paperwork before your appointment.

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