Hien Hoang: 0448 012 728 and Brian Spurrell: 0412 011 946

This month’s article should be of interest to readers that have reached age pension age but are not eligible for the age pension and are most likely self-funded retirees or have not retired but are earning either employee or business income and have either failed the age pension income or assets test.

Age pension age varies according to the date range in which you were born:-

pension ages australia

Whilst not eligible for the age pension and hence also not eligible for the Pension Concession Card it may be worthwhile applying for the Commonwealth Seniors Health Care Card (CSHCC) as it provides access to a number of federal government concessions including:

  • Cheaper medicines under the Pharmaceutical Benefits Scheme
  • Bulk billed doctor visits depending upon your doctor
  • A Refund for medical costs when you reach the Medicare Safety Net
  • In addition your state government and local council may lower any of the following expenses:
    – electricity and gas bills
    – property and water rates
    – health care costs, including ambulance, dental and eye care
    – public transport fares

Now for the good news:

  • There is no asset test to qualify for this card, only an income test
  • The income test threshold is now very generous having increased with effect from 4 November 2022 from $57,761 to $90,000 for singles, from $92,416 to $144,000 for couples and from $115,522 to $180,000 for couples separated by illness. Also add $639.60 to these amounts for each child in your care.

Income Test Eligibility

Eligibility for the CSHCC also depends upon passing the income test which includes:

  • your adjusted taxable income which you can obtain from your most recent tax return.
  • your deemed income on account–based or allocated pensions.

Account based income streams include account based pensions and account based annuities. The balance of an account based income stream is subject to deeming which assumes that financial investments are earning a certain rate of income. The deeming rules will not apply if you commenced your income stream prior to 1st January 2015 and will therefore not be included in the income test.

Applying for the CSHCC

You can apply for the card through Services Australia or through your MyService account and complete the Application for the Commonwealth Seniors Health Card and include the required supporting documents.

The content of this article is not intended to be used as professional advice and should not be used as such. Brian Spurrell B.Com. BA, FCPA, Registered Tax Agent, is Director of Personalised Taxation & Accounting Services Pty Ltd. PO Box 143 Warrandyte 3113.
Ph: 0412 011 946
Email: bspurrell@ptasaccountants.com.au
Web: www.ptasaccountants.com.au