Grandparents Raising Grandchildren NSW Financial Help

Two Systems, One Child

Financial help for grandparents raising grandchildren in NSW runs through two completely separate government systems, and your access depends on how the child came into your care.

If DCJ placed the child with you (through the Children's Court, a care order, or a formal kinship placement), you access state-funded DCJ allowances — $714 to $1,081 per fortnight depending on the child's age, tax-exempt and non-means-tested.

If you took the child in privately (a family arrangement, no court orders, no DCJ involvement), you access federal payments through Services Australia — Family Tax Benefit, child care subsidies, and potentially Carer Allowance.

Many grandparents fall through the gap between these two systems because they assume informal care means no help at all. It does not. The Centrelink pathway is specifically designed for non-parent carers raising children without court orders.

What Informal Grandparent Carers Can Claim

If you are an informal carer — no DCJ caseworker, no Children's Court order — your financial support comes from Centrelink:

• Family Tax Benefit Part A — income-tested, paid per child, requires at least 35% actual care
• Family Tax Benefit Part B — per-family payment, higher rate for single-income carers
• Additional Child Care Subsidy (Grandparent) — covers up to 100% of approved childcare fees if you receive income support
• Double Orphan Pension — if both parents have died, or one has died and the other is in prison for at least 10 years, in psychiatric or nursing care indefinitely, or has unknown whereabouts; certain refugee children also qualify (no means test)
• Carer Allowance — if the child has a significant disability (supplementary payment, stacks with other benefits)
• Foster Child Health Care Card — PBS concession medicines and bulk billing, non-means-tested

Start by calling 1800 245 965, the dedicated Grandparent, Foster and Kinship Carer Adviser line. The advisers can assess your full household situation, flag your Centrelink record as a non-parent carer, and prevent the processing delays that happen when claims go through the standard MyGov channel.

What Formal Carers Receive

Grandparents with a child placed by DCJ receive fortnightly care allowances at the following rates (from 1 July 2026):

• 0–4 years: $714 per fortnight (standard)
• 5–13 years: $806
• 14–15 years: $1,081
• 16–17 years: $720

Children with documented complex needs can be assessed for Care +1 or Care +2 loadings — up to $1,942 per fortnight at the highest tier for a 14–15 year old.

Formal carers can also access DCJ establishment payments: up to $200 for crisis placements, $350 for short-term and $1,400 for long-term placements to cover bedding, clothing and safety equipment. Contingency funding for dental, therapy, tutoring and interstate travel is available through your caseworker.

These DCJ allowances stack with Centrelink payments. You can receive the DCJ care allowance and FTB simultaneously — DCJ payments are not counted as income by Centrelink.

Proving Care Without Court Orders

The biggest administrative hurdle for informal grandparent carers is proving to Centrelink that you are the child's primary carer when there is no court order to point to. You can establish this with:

• A statutory declaration under the Oaths Act 1900 (NSW) setting out when the child arrived, why, and that the child lives with you full-time
• School enrolment records showing your address and you as the primary contact
• GP or immunisation records at your address
• Letters from neighbours, family members or community workers confirming the arrangement

Get the statutory declaration witnessed by a Justice of the Peace (free at most local courts and some pharmacies in NSW) before calling Centrelink.

Housing and Tax Implications

DCJ care allowances are classified as non-assessable income by Homes NSW, so they do not affect your public housing rent subsidy. If you are a social housing tenant on a pension, taking on a grandchild through DCJ does not increase your rent.

For tax purposes, DCJ allowances are non-taxable. Check current ATO guidance if you need to know whether a particular payment should be reported on your tax return. Family Tax Benefit is also non-taxable, though you need to lodge a tax return or confirm your income estimate with Centrelink each year to avoid FTB overpayment debts.

Getting Organised

The practical challenge is not finding the payments — it is managing the paperwork across two agencies that do not talk to each other. A missed Centrelink deadline or DCJ continuation form due date can interrupt payments.

The NSW Kinship Carer Support guide provides a claim tracker, agency communication log and proof-of-care dossier — printable tools designed for grandparents managing applications across both DCJ and Centrelink at the same time.

See more New South Wales guides →