Author: Emma Partenza, Manager, TAG Financial Services
Older Australians of age pension age may be entitled to obtain a Commonwealth Seniors Health Card (CSHC). It entitles you to receive cheaper medicines under the PBS, bulk billed doctor visits and a refund for medical costs once the safety net is reached.
CSHC Eligibility requirements:
- must be of age pension age*
– 66 years and 6 months if you are born between 1 July 1955 and 31 December 1956
– Age 67 for those born post 1 January 1957 - be living in Australia and either hold Australian citizenship or a permanent visa and continue to meet this for the duration of eligibility of holding the card
- not be in receipt of any payments from Centrelink or Department of Veterans’ Affairs
- meet the incomes test
- must be of age pension age*
* From 1 July 2023 age 67 will be the age pension age for all Australians.
Incomes test
Currently, to be eligible you must earn less than:
Members in receipt of an account-based pension may have their pension assessed under the income test. Deeming rules apply to allocate a certain amount of income to it, regardless of what was earned on these investments and regardless of what you withdraw as a pension.
Deeming only applies where account-based pensions were commenced by a member post 1 January 2015; or where they were held an ABP earlier, but the member did not hold a CSHC.
Proposed new incomes test
The Federal Government has proposed to increase the incomes test threshold to ensure more Australians are eligible for the card and its associated benefits. Older Australians can now earn more and be entitled to receive the CSHC.
Under the proposed incomes test, to be eligible for the card, you must earn less than:
Please note that no action is currently required as this is not yet law.
If passed:
- The new thresholds will come into effect on 20 September 2022.
- We will send information on the actions needed to our clients.
The Federal Government estimates more than 50,000 Australians will become eligible to receive the card and its associated benefits. The aim is to ease the cost-of-living pressures currently faced.
Questions?
If you have any questions, please contact your TAG advisor on 9886 0800 or via email.
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Disclaimer: The information contained is general in nature. Professional advice should be sought before acting on any aspect on this page. Financial planning services provided by TAG Financial Advisors Pty Ltd (ABN 77 154 205 017 AFSL 415632), a wholly owned subsidiary of TAG Financial Services Pty Ltd (ABN 67 075 374 686). Copyright 2022. Please do not reproduce without the expressed written consent of the author.