Commonwealth Seniors Health Card income thresholds increase

From 20 September 2024, the Commonwealth Seniors Health Card (CSHC) income test thresholds increased in line with the Consumer Price Index. The CSHC may provide a range of benefits and concessions, including cheaper medicines, which may assist with your cost of living. With the increase in income eligibility limits, it’s a great time to recheck your eligibility.

Who’s eligible?

Generally, the CSHC is available to those who have reached Age Pension age but don’t qualify for an income support payment (such as the Age Pension). Income limits apply, and these limits are subject to increase each year on 20 September.

From 20 September 2024, the increased thresholds are:

What are the benefits of the CSHC?

A range of benefits and concessions are available to cardholders, including:

• cheaper medicines under the Pharmaceutical Benefits Scheme
• bulk-billed doctor visits at the clinic’s discretion, and reduced medical costs
• certain state, territory and local government concessions such as:

• a discount on utility bills, property and water rates 
• concessional rates on public transport
• discounted motor vehicle registration. 

Many of the benefits and concessions available to CSHC holders are state or territory based. Read about concessions available from your state or territory government on their websites by clicking the links below:

• Australian Capital Territory – ACT Assistance
• New South Wales – NSW Government Community Support
• Northern Territory – NT Pensioner and Carer Concession Scheme
• Queensland -– Concessions
• South Australia – Disability concessions and entitlements
• Tasmania – Discounts & concessions
• Victoria – Concessions & benefits
• Western Australia – Concessions WA

In some cases, if you are eligible for the CSHC you may also be able to apply for the Low Income Health Care Card to receive additional benefits (click here for additional information from Services Australia about this concession card). Eligibility for the Low Income Health Care Card is based on a different income assessment.

What is ‘income’ for CSHC?

CSHC eligibility is based on an income test that looks at ‘adjusted taxable income’. Adjusted taxable income includes:

• taxable income (excluding any assessable amounts released under the First Home Super Saver Scheme)
• target foreign income
• total net investment losses
• employer-provided fringe benefits (in excess of $1000)
• reportable superannuation contributions (ie salary sacrifice and personal deductible contributions)
• deemed income* from account-based pensions (unless the grandfathering rules apply). 

* Deeming rates are used to determine income for ‘social security purposes’ regardless of the actual income you are receiving. It is based on rates set by the government. See Services Australia for additional information on deeming and current rates.

If you’re a member of a couple, you need to report your combined income (even if your partner isn’t eligible to apply for the card).

What if my income has changed recently?

In some circumstances, your income in the prior year may be considerably different to what your income is likely to be for the current financial year in which you’re applying for the card. This may be the case where you’ve retired or reduced your hours of work.

Where this is the case, you may be able to provide an estimate of your income when applying for the CSHC. You’ll need to be able to provide evidence to substantiate the change in your income, and the reason for the change. Being able to provide an estimate is at the discretion of Centrelink (or Department of Veterans’ Affairs) and based on the explanation you provide with your application form. 

Once you have completed your tax return for the year, you’ll then need to provide a copy of your tax Notice of Assessment to Centrelink to confirm your income estimate.

How to apply

Go to Services Australia to check your eligibility and, if eligible, submit an application online. Services Australia also provides useful information on the supporting documentation required, such as your last tax assessment. 

Are you affected by the changes to the CHSC? Are you now eligible? Let us know in the comments section below.

Jenny Brookhouse is MLC’s senior technical services manager.

Also read: Centrelink guide to applying for the Age Pension