Raising a Grandchild on a Pension in the ACT: Payments and Concessions

A Pension Was Never Designed to Feed Two Generations

The Age Pension or Disability Support Pension is calculated for one adult (or a couple) with their own living costs. It was never designed to cover school shoes, childcare fees, specialist appointments and the other expenses that arrive when a grandchild moves in. Every pensioner grandparent in the ACT who has taken on a child knows the maths does not add up without extra support.

The good news: there is a stack of Commonwealth payments and ACT concessions specifically designed for this situation. The bad news: nobody puts them all in one list for you. Here is that list.

Commonwealth Payments on Top of Your Pension

Family Tax Benefit Parts A and B — the core per-child payment. Being on the pension does not disqualify you. The amount depends on income, the child's age and your care percentage; at least 35% actual care is the threshold for a proportion, subject to other rules, including restrictions when you live with the child's birth parent. Claim through myGov or call 1800 245 965.

Foster Child Health Care Card — issued in the child's name with no income test on you. Gives the child concession-rate medicines, lower Medicare Safety Net thresholds and access to the Child Dental Benefits Schedule.

Additional Child Care Subsidy (Grandparent) — this is the one that many pensioner grandparents miss. If you receive an income support payment (Age Pension, DSP, Parenting Payment) and you are a grandparent or great-grandparent as the primary carer, ACCS Grandparent covers up to 100% of the benchmark fee for up to 100 hours per fortnight. No standard activity test — you do not need to prove you are working or studying.

This applies to centre-based day care, outside school hours care and vacation care. If the child is in school and you use after-school care, the subsidy can eliminate your out-of-pocket fees entirely.

Double Orphan Pension — $81.60 per fortnight if both parents are deceased, or one is deceased and the surviving parent is incarcerated for at least 10 years, admitted to a psychiatric institution indefinitely, or missing after reasonable search efforts. Non-means-tested, paid in addition to FTB Part A.

Carer Allowance (Child) — $162.60 per fortnight if the child has a recognised disability or severe medical condition. Also non-means-tested. You can receive this alongside the Age Pension and FTB simultaneously.

ACT Territory Concessions

Electricity, Gas and Water Rebate — up to $800 per year in direct utility credits. You qualify with your Pensioner Concession Card or Health Care Card. This is not specific to kinship care — it applies to all concession card holders — but many grandparent carers do not realise they are eligible.

Future of Education Equity Fund — annual school cost grants: $400 (preschool), $500 (primary) or $750 (high school/college) per student. Applications open 1 December each year for concession card holders.

The ACT has no local councils, so there are no separate council rates concessions to navigate — the ACT Government handles everything in one place.

How Payments Interact With Your Pension

Family Tax Benefit and the Foster Child Health Care Card do not reduce your Age Pension. The Double Orphan Pension and Carer Allowance are also non-means-tested and have no effect on your pension rate.

The ACT Foster and Kinship Care Subsidy (for statutory placements only) is tax-exempt and excluded from Centrelink income tests, so if you are a formal kinship carer, the territory subsidy does not touch your pension either.

The only interaction to watch: if you receive child support from the biological parents, it affects FTB Part A through the Maintenance Income Test. And any employment income (if you work part-time) is income-tested against both the pension and FTB.

Making the First Call

The Grandparent, Foster and Kinship Carer Adviser Line (1800 245 965) can help you understand relevant payments and identify next steps for your situation.

The ACT Kinship Carer Support guide puts every payment, concession, form and deadline in one place for ACT grandparent carers.

See more Australian Capital Territory guides →