This is information clarifies the distinction between federal and state references to "carers," particularly regarding care allowances, supports, and programs. These typically apply to different types of care:
Federal Level: The term "carer" refers to individuals supporting someone with a disability, medical condition, or frailty (aged).
State Level: States manage foster, kinship, permanent, and local adoption care programs, including allowances and support for children and young people in home-based care placements.
Some federal supports are available for home-based carers of children and young people: Support for Foster Carers and Other Non-Parent Carers.
These are entirely separate payments for different care types:
Victorian Care Allowance:
Provided by the Victorian Department of Families, Fairness and Housing (DFFH).
Reimburses day-to-day costs for eligible foster, kinship, and permanent carers of children in home-based care.
Determined by the child’s needs.
Not considered income, unaffected by the carer’s income, and not taxable.
Federal Carer Allowance:
Delivered by the Department of Social Services.
A supplementary payment for carers supporting someone with a disability, medical condition, or frailty.
Some carers may also qualify for a Carer Payment, which is taxable after income thresholds are reached.
Feature | Care Allowance (home-based care) | Carer Allowance (disability, health, aged care) | Carer Payment (disability, health, aged care) |
Administered by | Victorian State Government (DFFH) | Federal Government (Centrelink) | Federal Government (Centrelink) |
Target Group | Foster, permanent and kinship carers | Carers of people with disabilities or frailty | Carers unable to work due to care responsibilities |
Purpose | Reimbursement for care-related costs | Financial support for ongoing care | Income support for full-time carers |
Eligibility | Foster/kinship care providers caring for children in statutory out-of-home care | Caring for someone with a disability or medical condition who meets specific criteria (e.g., care recipient earns <$129,982 annually) | Income and assets tested, full-time carer for a person with a severe disability, medical condition, or frailty |
Taxable? | No, not taxable (reimbursement only). | No, not taxable (classified as a supplement). | Yes, taxable after $18,200 per year (general tax-free threshold in Australia). |
