In 1985, Australia introduced Carer Pension, Carer Payment (CP), to provide income support for carers unable to support themselves through substantial paid employment. It is means-tested on the income of both the care provider and the care receiver, who must also meet an assessment of disability. However, it is not subject to activity testing and not included in the 'activation' policies applied to most other forms of income support for working-age people. In 2006, CP recipients participated in paid work, unpaid work, education or training for up to 25 hours per week, however, only 23% had earnings while receiving it. Reasons for this outcome included the strain of caring responsibilities, inadequate skills and training, and the carer's own health problem or disability: about 40% of recipients had not been in employment when they started caring and/or receiving CP. Many carers rely on government income support as their main source of income, however, reflecting their lower rates of labour force participation and concentration in part-time work. In 2003, income support was the main source of personal cash income for 40% of Australian carers, compared with 24% of other people.
