Families caring for children with disabilities face immense emotional and financial pressures—from juggling medical appointments to managing therapy sessions, specialized care, and, in many cases, reduced income. Recognizing these challenges, the Australian Government continues to offer crucial relief through the Child Disability Assistance Payment (CDAP). In 2025, eligible families can receive up to $998 per child in this tax-free, one-time annual payment.
If you are a parent, guardian, or caregiver receiving the Carer Allowance, this payment could be yours—no application required.
What Is the Child Disability Assistance Payment (CDAP)?
The CDAP is an annual lump-sum payment provided by Services Australia to support families receiving the Carer Allowance for children under 16 with disabilities. Introduced in 2007, the CDAP is not taxable and does not affect any other Centrelink or government payments. The 2025 payment continues the government’s commitment to easing the financial strain placed on caregivers and to recognizing the essential work they do.
2025 CDAP at a Glance
| Aspect | Details |
|---|---|
| Payment Amount | Up to $998 per eligible child |
| Eligibility Criteria | Must receive Carer Allowance for a child under 16 on 1 July 2025 |
| Application Required | No – Payment is automatic |
| Payment Timing | Between July and August 2025 |
| Administered By | Services Australia |
| Taxable? | No – The payment is tax-free |
| Shared Care? | Payment will be split if shared care is in place |
| Income Managed? | Sent to BasicsCard or SmartCard if applicable |
Why the Payment Matters
Caring for a child with a disability is a full-time responsibility. Families often face increased costs for medical treatments, adaptive equipment, travel to specialist appointments, and home modifications. Many caregivers reduce their working hours or leave employment altogether to provide proper care.
The CDAP offers:
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Financial relief to offset those additional costs
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Recognition of the emotional and physical dedication caregivers give
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Certainty through predictable annual support
Who Is Eligible?
To qualify for the 2025 CDAP:
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You must be receiving the Carer Allowance for a child under 16
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You must be entitled to that allowance on 1 July 2025
If you’re already on the Carer Allowance, no further action is needed. Services Australia will automatically assess and issue the CDAP.
Special Cases:
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Shared Care: If two people care for the child, the payment will be divided based on each party’s registered care percentage.
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Income Management: For those under income management, payments will be placed on a BasicsCard or SmartCard.
When and How Is It Paid?
Payments are expected to be processed between early July and late August 2025. While delays are rare, errors in personal or banking information may hold up processing.
To ensure timely receipt:
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Log in to your MyGov account
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Confirm your Carer Allowance status
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Update bank account and contact information
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Check for any shared care agreements that may impact your payment amount
How Can the Payment Be Used?
The CDAP is completely flexible—there are no spending restrictions. Families can use it in whatever way best supports their child’s well-being.
Common uses include:
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Specialist therapies (e.g., speech, behavioral, occupational)
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Medical appointments and travel costs
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Assistive technology or mobility devices
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In-home or respite care
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Educational materials and tutoring
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Household expenses like groceries or utility bills
Real-Life Example:
Leah, a mother caring for her 10-year-old son with cerebral palsy, used last year’s CDAP to purchase a custom wheelchair cushion and fund travel to a neurology specialist. “It was a small relief, but it made a big impact,” she shared.
Preparation Checklist
To prepare for the 2025 payment:
✅ Confirm that your Carer Allowance is active as of 1 July 2025
✅ Log into MyGov and review your profile and bank details
✅ Double-check any shared care arrangements
✅ Keep track of key expenses where the payment could offer support
Maximizing Your CDAP
Here are tips to make the most of your Child Disability Assistance Payment:
1. Create a Spending Plan
Anticipate your child’s upcoming care needs and decide how to prioritize the funds.
2. Leverage Other Supports
Pair the CDAP with other benefits like NDIS, Carer Payment, or local government grants to amplify its value.
3. Stay Informed
Subscribe to updates from Services Australia and monitor your MyGov inbox for any payment alerts or changes.
4. Seek Professional Guidance
If you’re uncertain how to manage disability-related costs, a financial counsellor can provide valuable insights.
FAQs About the 2025 Child Disability Assistance Payment
Q: Is the CDAP taxable?
A: No. The CDAP is entirely tax-free and won’t affect other benefits.
Q: Do I need to apply?
A: No. If you receive Carer Allowance on 1 July 2025, the payment is automatic.
Q: Can I receive it for multiple children?
A: Yes. You’ll receive a separate payment for each eligible child under your care.
Q: What if I didn’t receive the payment?
A: Check your MyGov account and contact Services Australia at 132 717 if needed.
Q: Can the payment be backdated?
A: Unfortunately, no. Eligibility is tied to the active Carer Allowance status on 1 July.
Final Thoughts
The Child Disability Assistance Payment of up to $998 in 2025 is more than financial support—it’s an annual reminder that your work as a caregiver is seen, valued, and supported. For thousands of Australian families, it offers a vital lifeline to manage the unique demands of raising a child with a disability.
As long as your Carer Allowance is active on July 1, you’re all set. Stay organized, plan ahead, and make the most of this opportunity to ease your caregiving journey.
