Can I apply for the Commonwealth Seniors Health Card?

 

Article from National Seniors Australia © | 9 June 2022

The Commonwealth Seniors Health Card (CSHC) gives you access to cheaper medicines and medical bulk billing. It also gives you access to several other state and federal concessions. In Western Australia, a CSHC holder receives $1,660 of concessions.

Many self-funded retirees who were previously ineligible for the CSHC could find the situation changes from 1 July 2022, when the income thresholds change – an election commitment made by the new Labor government.

The income threshold used to determine eligibility for the card will increase from just under $58,000 a year to $90,000 a year for single self-funded retirees, and from just over $92,000 to $144,000 for couples.

This means an additional 50,000 older Australians could be eligible for the CSHC.

So, if you are a self-funded retiree, it's well worth checking to see if you are eligible.

 

How Centrelink works out your income

To meet the CSHC income test (from 1 July 2022) you must earn no more than the following:

  • Singles: $90,000 a year

  • Couples (combined): $144,000 a year

Unlike the Age Pension, the eligibility test for the CSHC does not include an assets test, but it does use some of your assets to estimate your income.

Assessable income, under the CSHC income test, includes a combination of actual income and deemed income. Actual income is 'adjusted taxable income', which comprises of:

  • Taxable income

  • Target foreign income

  • Total net investment losses

  • Employer provided benefits

  • Reportable superannuation contributions.

Deemed income is only from account-based income streams (not from any other financial assets you own). An account based income stream is purchased with superannuation money, and commonly known as an allocated or transition to retirement pension.

Deeming rates currently sit at 0.25% for first $53,600 of your financial assets and 2.25% for anything over $53,600.

However, if you’re a couple and neither of you get a pension the deeming threshold is different. The first $44,500 of each of your joint financial assets is deemed at 0.25% per year. Anything over $44,500 is deemed to earn 2.25%. 

And thanks to another election promise, these deeming rates will be frozen for two years, even if interest rates keep going up.

National Seniors Concessions Calculator

To see what you’re eligible for with a CSHC (or any other concession card), take a look at the National Seniors’ Concessions Calculator.

This simple and easy-to-use tool lists a range of available benefits, making it easier to understand what concessions you may be entitled to. We encourage you to check it out and share with your friends and family so they too can make the most of their benefits. If you think you are eligible for the CSHC, go to the Centrelink website for more information about making an application.

Brad Stewart