State Kinship Care Allowances in Australia

Australia runs a two-tier system for kinship carers: federal Centrelink payments available to carers who meet each payment's eligibility rules, and state or territory carer allowances generally paid to carers with a formal placement through the child protection department. Understanding how the two tiers interact — and which one you fall under — determines what you're actually entitled to.

The Key Distinction: Informal vs Statutory

Informal kinship carers have a private family arrangement. No court order, no child protection department involvement. You took in a grandchild because the family needed it. You access federal Centrelink payments (FTB, CCS, Double Orphan Pension) but not state carer allowances.

Statutory kinship carers have a formal placement through the state child protection department — the department assessed the child as needing out-of-home care and placed them with you as a relative. You access both federal Centrelink payments and the state carer allowance.

The state allowance is the significant financial difference. It is a separate payment for the child's daily needs — food, clothing, school costs, and activities — and qualifying allowances are excluded from income for specified Centrelink payment calculations.

What Each State Pays

State carer allowance rates vary by jurisdiction, the child's age, and the child's assessed needs. The rates below are indicative and change with annual indexation:

New South Wales (DCJ) — The statutory care allowance covers children in out-of-home care placements arranged by the Department of Communities and Justice. Rates increase with the child's age and any assessed special needs.

Victoria (DFFH) — The Department of Families, Fairness and Housing pays a carer reimbursement rate for children in kinship care placements. Kinship Carers Victoria connects carers to regional DFFH Care Support Help Desks for rate information and support.

Queensland — Child Safety pays a fortnightly foster and kinship care allowance. Time for Grandparents (1300 135 500) provides additional support for informal grandparent carers who aren't in the statutory system.

Western Australia — The Department of Communities pays a carer subsidy for formal placements. Additionally, Wanslea Grandcare administers the Grandcarers Support Scheme — a separate $1,000 annual payment per grandchild available to informal grandparent carers who've provided care for at least four months.

South Australia — The Department for Child Protection pays a carer payment for formal kinship placements. Grandparents For Grandchildren SA ((08) 8212 1937) supports both formal and informal carers statewide.

ACT — The Children, Youth and Families directorate pays a carer subsidy for formal kinship placements. Carers ACT provides independent advocacy and support programs.

Tasmania — The Department for Education, Children and Young People pays a carer allowance for formal kinship placements. Foster & Kinship Carers Tasmania (1800 149 994) provides 24-hour support.

Northern Territory — Territory Families pays a carer allowance for formal placements, with rates reflecting the higher cost of living in remote areas.

The Centrelink Interaction: Why It Matters

Qualifying state kinship care allowances are non-taxable and excluded from income for specified Centrelink payment tests. This is critical because it means:

• Receiving a qualifying state carer allowance does not reduce your Age Pension, Disability Support Pension, JobSeeker Payment, Carer Payment, or Parenting Payment
• It does not count toward the income test for Family Tax Benefit
• It does not reduce the Centrelink payments listed above when the allowance meets the statutory exclusion

This exclusion applies to payments made by a State or Territory welfare authority to a carer for the maintenance of a child. Follow the instructions on any Centrelink reporting form that asks about your income.

Can Informal Carers Get Into the Statutory System?

In some cases, yes — but it depends on the child's circumstances and the state department's assessment. If the child came into your care because of abuse, neglect, or a safety risk in the parental home, you can contact the relevant state child protection department to report the situation and request an assessment.

If the department determines the child is at risk and opens a case, they may formalise the placement with you as a statutory kinship carer. This gives you access to the state carer allowance and departmental support services (caseworker, respite, emergency grants).

However, if the child came into your care through a genuinely private family arrangement — the parent asked you to take the child, or you offered — the child protection department may not have grounds to open a case. In that situation, you remain an informal carer with access to federal payments only.

The Bottom Line

Whether you're informal or statutory, federal Centrelink payments — FTB, CCS, Double Orphan Pension, Foster Child Health Care Card, and Carer Allowance — are available if you meet their eligibility rules. The state carer allowance is an additional layer generally limited to statutory placements; qualifying allowances do not reduce the specified Centrelink payments.

Our Centrelink Payments for Grandparents guide covers the full federal claim sequence for both informal and statutory kinship carers, including where state payments fit in.

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