The Carer Allowance is an income supplement paid fortnightly to carers even if they are engaged in work or undertaking study.

To qualify for the Carer Allowance, the carer must provide additional daily care for a person that has a severe disability or medical condition or is frail and elderly. The additional daily care must be provided in a private home or in hospital (with regards to additional daily care, 20 hours of personal care per week on a daily basis is commonly cited.)

The carer may find that if they qualify for the Carer Payment, then they may receive the Carer Allowance automatically.

There is no assets tests required for the Carer Allowance; however, there is an income test. Furthermore, the Department of Human Services pay the Carer Allowance on top of any social security income support payment the carer receives or income from other sources, such as employment.