More Australian retirees will soon become eligible for the Commonwealth Seniors Health Card, following changes to the income thresholds scheduled to take effect from September 20. The updated limits are part of a regular indexation process and will allow more older Australians, particularly those who are self-funded and not receiving Centrelink payments, to access government concessions.
According to reporting from au.finance.yahoo, the value of these benefits can reach $3,000 annually, potentially totalling $60,000 over the course of a typical retirement. The changes are expected to widen access without significantly altering the structure of the card or its application process.
Changes to Income Test Thresholds
From September 20, the income test limits for the Commonwealth Seniors Health Card will increase:
- For singles: from $99,025 to $101,105
- For couples: from $158,440 to $161,768
There is no asset test applied, which makes the card more accessible to retirees with superannuation or property assets.
We review this test on 20 September each year in line with the Consumer Price Index – Services Australia said.
To determine your eligibility, Services Australia assesses both your adjusted taxable income and deemed income from account-based income streams. This includes superannuation pensions and annuities, and these calculations may also affect what shows up on your ATO tax return. If you’re unsure what your current taxable income includes, it’s worth checking the ATO portal or your latest tax return summary.
Deeming Rate Changes and Income Calculations
The deeming rules will also be revised. These rates simulate the return you’re expected to earn on financial investments, and they are used instead of your actual earnings.
- Singles: The first $64,200 of financial assets will be deemed to earn 0.75% per annum.
- Couples: The first $106,200 will be assessed at the same rate.
Amounts above these thresholds are deemed to earn 2.75% annually. These values, like your ATO-reported income, help calculate whether you pass the income test.
Real-World Value: Up to $60,000 Over Retirement
The Commonwealth Seniors Health Card provides substantial financial benefits. According to Retirement Essentials, eligible retirees can save as much as $3,000 a year through various subsidies and rebates.
That adds up to $60,000 in potential savings for someone who lives until 87 – the retirement advisory service notes.
These figures are estimates, and the exact amount depends on your state, your medical needs, and which local concessions are available — but the difference for many can be meaningful.
Cheaper Medicines and Medicare Benefits
One of the biggest benefits is reduced cost of prescriptions under the Pharmaceutical Benefits Scheme (PBS). With the card, prescriptions are capped at $7.70 per script.
This is further limited by an annual PBS safety net of $277.20. Once this limit is reached, all PBS-listed medicines become free for the rest of the calendar year.
Other benefits include:
- Bulk-billed GP visits, depending on the doctor
- Medicare Safety Net refunds on out-of-pocket costs
- Possible discounts on dental, optical, and hearing services
These healthcare savings alone can make a noticeable difference in annual out-of-pocket expenses — something to consider when filing your next tax return, especially if you’re claiming medical-related deductions with the ATO.
Extra Savings From Local Governments
Beyond health care, state, territory, and local governments may offer additional concessions to cardholders, such as rebates on electricity and gas bills, reductions in water and property rates, discounted public transport fares, and lower costs for various recreational and cultural activities.
These benefits vary depending on the region, so retirees are encouraged to check their local government websites or the Services Australia portal for up-to-date information on available programs.
How to Qualify and Apply
To be eligible, you must be age 67 or older, not receive payments such as the Age Pension, and meet the income test, noting that no asset test applies. Applications can be submitted online via the Services Australia website, and you may be required to provide supporting financial documentation, such as your latest ATO tax return.
Centrelink Payments Indexed This Month
The Centrelink indexation cycle occurs twice a year, in March and September. This means many key payments will increase on September 20, including:
- Age Pension
- JobSeeker Payment
- Youth Allowance
- Parenting Payment
Updated Fortnightly Payments:
- Single Age Pension: $1,178.70 per fortnight (up $29.70)
- Partnered Age Pension: $888.50 per person per fortnight (up $22.40)
These amounts include the Pension Supplement and Energy Supplement:
- Pension Supplement: Helps with everyday costs like utilities and phone bills.
- Energy Supplement: Assists with rising energy costs.
All Age Pension recipients also receive a Pensioner Concession Card, which grants many of the same benefits as the Seniors Health Card, with some additional perks depending on jurisdiction.
More Support for Self-Funded Retirees
As the cost of living continues to challenge retirees — especially those just above the pension threshold — these changes aim to offer targeted relief. For self-funded retirees who don’t qualify for the Age Pension, the Commonwealth Seniors Health Card is one of the few support mechanisms available.
The increased thresholds will make it more accessible to retirees with modest super balances or additional income from part-time work or investments. Combined with indexation of support payments and reduced prescription costs, it represents a welcome change at a time when household budgets are under strain.
To explore your eligibility or make a claim, visit the official Services Australia website or speak with your accountant when preparing your ATO tax return.
