Serious Illness, Work and Income Support in Australia

Work questions arrive fast after a diagnosis — what leave you have, what you're required to tell your employer, and what income support is available if you can't work. This page covers your rights and options in plain terms. If you'd rather have a plan built around your situation, answer a few questions and we'll build one around you →

What you have to tell your employer — and what you don't

There is no legal obligation to disclose your diagnosis to your employer. You are only required to tell your employer that a health condition is affecting your ability to work — not what that condition is. In most cases, "a medical condition" or "a health issue" is enough.

Two situations where fuller disclosure may be required or expected: if your role involves a specific licence or certificate (such as a commercial vehicle licence, pilot certificate, or certain health profession registrations), your licensing body may have separate reporting obligations you need to check; and if your condition affects your ability to perform the inherent requirements of your role safely, an employer can ask for more detail about functional limitations — though still not a diagnosis.

Deciding what to share beyond the minimum is a personal call. If you do share more, put any agreements about leave, hours, or adjusted duties in writing — email is fine — so both sides have a clear record.

Personal and carer's leave

Under the Fair Work Act 2009, most employees are entitled to 10 days' paid personal/carer's leave per year. Unlike annual leave, personal leave accumulates year to year with no upper cap — so if you haven't used much leave in prior years, you may have a larger balance than you expect. Check your leave balance with your payroll or HR team.

Leave accrues based on ordinary hours worked:

• Full-time employees — 10 days per year of ordinary hours.
• Part-time employees — accrual is proportional to hours worked (for example, someone working three days a week accrues around six days per year).
• Casual employees — have no entitlement to paid personal leave under the Fair Work Act. Some enterprise agreements or awards may provide additional entitlements; check yours.

Personal/carer's leave can be used for your own illness or to care for an immediate family or household member who is ill. If you exhaust your paid leave, talk to your employer about unpaid leave — it isn't automatic, but a good-faith conversation is worth having early.

Many modern awards and enterprise agreements provide leave entitlements above the statutory minimum. Check your award or agreement for your specific entitlements.

Medical certificates

Your employer can ask for evidence from a registered health practitioner to support a period of personal leave. A certificate from a GP fully satisfies this requirement — your employer cannot require you to obtain a specialist certificate for a routine absence.

Under the Fair Work Act, an employer can request evidence for any period of personal leave, including a single day. Whether they actually do so, and from when, depends on your workplace policies, your award, or your enterprise agreement — many workplaces require a certificate for absences of more than two consecutive days, but the legal minimum allows employers to ask for any absence. Check your specific award or agreement.

Keep copies of all medical certificates you provide to your employer.

Reasonable adjustments

The Disability Discrimination Act 1992 (DDA) makes it unlawful for an employer to discriminate against an employee because of a disability, which includes illness and medical conditions. If your diagnosis affects how you work, you can ask your employer to make reasonable adjustments.

Reasonable adjustments might include: modified or reduced duties, flexible start and finish times, reduced hours, additional breaks, working from home, or changes to your physical workspace. What is "reasonable" depends on the circumstances — including the size and resources of the employer, the nature of the adjustment, and the disruption involved. An employer is not required to make an adjustment that would cause unjustifiable hardship.

Make your request in writing and describe the functional limitation rather than the diagnosis if you prefer. Your employer must genuinely consider the request. For guidance, the Australian Human Rights Commission handles DDA complaints: humanrights.gov.au or call 1300 656 419.

Your job security

An employer cannot lawfully dismiss you simply because you are ill, provided your absences are authorised — that is, you've taken paid personal leave, agreed unpaid leave, or notified your employer appropriately. Dismissal while on authorised leave is generally unlawful.

If your employment is terminated and you believe illness was a factor, you may have recourse through the Fair Work Commission. An unfair dismissal application must be lodged within 21 days of the dismissal taking effect. There are also general protections provisions under the Fair Work Act that cover adverse action taken against an employee because of a disability or because they exercised a workplace right (such as taking sick leave).

Small businesses (fewer than 15 employees) operate under a different unfair dismissal framework — the Small Business Fair Dismissal Code applies. The Fair Work Commission can provide guidance: fairwork.gov.au or 13 13 94.

If you can't return to work long-term

If your diagnosis means you cannot return to your current role permanently, the process will depend on your employment agreement, any applicable award, and the size of your employer.

Ill-health retirement is a pathway some enterprise agreements specifically provide for. It may entitle you to additional payment or an early access to superannuation benefits. Check your enterprise agreement or ask your union if you have one.

Redundancy may also be relevant if your employer cannot provide alternative work that suits your capacity. Under the Fair Work Act, employees with at least one year of service are entitled to redundancy pay if their role is genuinely redundant. Note that employees of small businesses (fewer than 15 employees) are not entitled to statutory redundancy pay.

Separately, your superannuation fund may hold TPD (total and permanent disability) insurance that pays a lump sum if your condition permanently prevents you from working. Contact your super fund directly to check — this is separate from any Centrelink entitlements.

If you're self-employed

Sick leave, unfair dismissal protections, and employer-paid leave don't apply if you work for yourself. The main gap is income — and the main protection is income protection insurance, if you hold it. If you do, check the policy's waiting period, benefit period, and how it defines "unable to work". If you don't, getting advice from a financial adviser about whether a policy is suitable is worth considering.

For income tax, if your earnings from your business drop significantly in a year of illness, the ordinary rules still apply — business expenses incurred in earning income remain deductible. If you're a primary producer or a "special professional" (including artists, sportspeople, authors, inventors, and performing artists), you may be eligible for income averaging under the ATO's provisions, which can reduce tax in high-income years that follow low-income ones. For most self-employed people in other fields, this provision doesn't apply — speak to your accountant about your specific situation.

If your income has dropped enough, you may also qualify for Services Australia income support — the same payments available to employees apply to self-employed people, subject to the same income and assets tests.

Services Australia income support

Apply for all Services Australia payments at my.gov.au or call Services Australia on 132 850. Most applications require a medical certificate or evidence from a registered health practitioner confirming your incapacity and its expected duration.

JobSeeker Payment

JobSeeker Payment is an income support payment for people who are temporarily unable to work due to illness or injury. While you hold a current medical certificate, your mutual obligation requirements — the job-search and activity requirements that normally attach to JobSeeker — are generally suspended. Payment is fortnightly and is both income- and assets-tested. Rates change regularly; check the current rate at servicesaustralia.gov.au.

If you do some part-time or casual work while receiving JobSeeker, you must report your earnings each fortnight. An income-free area applies — a small amount of fortnightly earnings does not reduce your payment dollar-for-dollar; above the threshold, the payment reduces progressively. Services Australia also maintains a Working Credit balance: when you earn nothing or little, credits accumulate; when your income rises, credits are used before your payment reduces. This can allow short periods of higher earnings without losing the payment entirely.

Disability Support Pension

The Disability Support Pension (DSP) is for people with a permanent physical, intellectual, or psychiatric condition that substantially reduces their ability to work. The eligibility assessment is more rigorous than JobSeeker and requires a formal impairment rating — you must score at least 20 points on the Impairment Tables, and typically must also demonstrate that participation in a Program of Support has not enabled you to work 15 or more hours per week at award wages, or that you are unlikely to be able to do so within two years.

DSP is paid at a higher rate than JobSeeker and has a higher income-free area, allowing a greater level of earnings before the payment is affected. If you can do some paid work, the same Working Credit mechanism applies. You can work up to a certain number of hours before your DSP eligibility is affected — check current thresholds with Services Australia, as rules in this area have changed.

Many people apply for DSP after a period on JobSeeker once their condition has been assessed as permanent. If you think you may eventually qualify, start the JobSeeker process now and ask Services Australia about DSP eligibility when you apply.

Carer Payment and Carer Allowance

These payments are for the family member or friend who is providing care — not for the person with the diagnosis. If someone close to you has had to reduce or stop work to care for you, they may be eligible.

• Carer Payment — an income support payment for people who provide constant care for someone with a severe disability or serious illness. It is income- and assets-tested and is paid at a rate similar to the Age Pension.
• Carer Allowance — a supplementary payment for people who provide daily care and attention for someone at home with a disability or medical condition. It is not means-tested and is paid as a flat fortnightly amount regardless of the carer's income.

The person being cared for generally needs to meet a care load or care receiver assessment. Your carer can apply through myGov or call Services Australia for guidance.

Keep a simple record

As you take leave, request adjustments, or deal with your employer or Services Australia, keep copies of everything: payslips, medical certificates, correspondence with your employer, and any reference numbers from Services Australia. A brief contemporaneous note of conversations — who said what and when — can be invaluable if anything is disputed later. Your phone's notes app is enough; you don't need a formal system.