Seniors with up to $7 million in super and other investments eligible for Commonwealth Seniors Health Card.

The Age Pension and associated Pensioner Concession Card is the most comprehensive Services Australia (Centrelink) benefit for seniors.

  • The assets test limit for a part pension is now $1,059,000 for a homeowner couple or $704,500 for a single homeowner (excluding the home but including any account based pensions and other assets held).

But for those with assets above this level, the Commonwealth Seniors Health Card (CSHC) and potentially even the Low Income Health Care Card (LIHCC) may be available depending on how much income you are earning and the level of your financial assets including super.

Commonwealth Seniors Health Card (CSHC)

The CSHC provides benefits such as cheaper medicine under the Pharmaceutical Benefits Scheme and, based on – which state you live in, may also provide discounts on electricity & gas, property & water rates and motor vehicle registration.

You must meet the following criteria to qualify for a CSHC:

  • You have reached your Age Pension eligibility age (currently 67)
  • You’re not eligible to receive any payment from the Department of Human Services (including the Age Pension) or from the Department of Veterans’ Affairs
  • You’re an Australian resident and you live in Australia (or you hold a special category visa as a New Zealand citizen living in Australia)
  • You satisfy an annual income test of less than than $158,440 a year for a couple combined or $99,025 for a single – being your adjusted taxable income as well as deemed income from your account based pensions.
  • That would be up to $7M of joint assets with deeming applied.

Note that the card is automatically renewed each year. It is cancelled if you leave Australia for longer than 19 weeks.

Low Income Health Care Card (LIHCC)

The LIHCC provides similar but not identical benefits e.g., one-off Government assistance payments or extra discounts.

It is worthwhile seeing if you are also eligible for the LIHCC and applying for both cards where you can.

You must meet the following criteria to qualify for a LIHC:

  • Be 19 years of age or older
  • You’re an Australian resident and you live in Australia (or you hold a special category visa as a New Zealand citizen living in Australia)
  • You satisfy an annual income test of less than $1,343 per week for a couple or $786 per week for a single – being your employment & rental income plus salary sacrifice and any allowances plus deemed income from your account based pensions and other financial investments such as bank accounts and shares.
  • That would be up to $3M of joint assets with deeming applied.

Services Australia will assess the gross income you earned in the 8 weeks before you submit your claim.

You need to apply for renewal after a year and you must also not go over an income limit while you have the card. It is cancelled if you leave Australia for more than six weeks.

How to calculate the deemed income from your account based pensions (when neither of you receive an Aged Pension)

The first $53,100 of each of your own and your share of joint financial assets has a deemed income of 0.25% per year. Anything over $53,100 is deemed to earn 2.25%.

To illustrate, suppose that Mr Smith has $1.3M in account based pensions, and Mrs Smith has $1.3M in account based pensions. They are both aged 67. Total combined account based pensions of $2.6M would result in deemed income to be reported of:

(53,100 x 2 x 0.25%) = 265.50
([2,600,000 – 53,100×2]x2.25%) = 56,110.50
Total Deemed Income = $56,376 p.a. ($1,084 p.w.)

If Mr & Mrs Smith had no other income or assets, they would be eligible for the Commonwealth Seniors Health Card & the Low Income Health Care Card.

Please note: that your personal circumstances may affect your eligibility. If you think you might be eligible, the best place to start is the Services Australia website or a local service centre. Feel free to contact us if you have further questions to discuss.

Prue Cheeseman is a financial adviser of HLB Mann Judd Wealth Management (NSW) Pty Ltd (AFSL 526052) ABN 65 106 772 696