More than one million self-funded retirees in Australia could be missing out on thousands of dollars in savings simply because they don’t realise they’re eligible for the Commonwealth Seniors Health Card (CSHC). This card isn’t just another piece of plastic—it’s a gateway to cheaper healthcare, reduced utility bills, and significant state-based discounts.
A Hidden Goldmine for Retirees
The CSHC is designed for Australians who have reached the pension age of 67 but do not receive Centrelink payments like the Age Pension. Unlike other benefits, there’s no asset test, but there is an income test that determines eligibility.
With up to $3,000 in annual savings for a single person, the benefits can quickly add up. A retiree who qualifies at age 67 and lives until 87 could potentially save $60,000 over their retirement.
Yet, despite these savings, estimates suggest around 1.5 million retirees could be eligible for the card, but only 500,000 have applied.
New Income Thresholds Mean More Retirees Qualify
A major reason retirees are missing out? They don’t know the income test has changed.
In recent years, legislation has significantly increased income thresholds, making the CSHC more accessible than ever. These limits are reviewed annually in line with inflation, meaning more retirees qualify as time goes on.
From September 20, 2024, the income test thresholds will be:
- $99,025 per year for singles
- $158,440 per year for couples
This means even retirees with substantial investments may still qualify. For example, a retiree with $1.9 million in an account-based pension would only have a deemed income of $41,500—well below the $99,025 threshold.
What Do CSHS Holders Get?
Holding a Commonwealth Seniors Health Card opens the door to significant financial relief, including:
- Discounted medicines: Pay just $7.70 per script under the Pharmaceutical Benefits Scheme (PBS), with an annual cap of $277.20. Once you reach this limit, your prescriptions are free.
- Bulk-billed doctor visits (if your doctor participates).
- State-based discounts on electricity, gas, property rates, water bills, ambulance cover, dental and eye care, and public transport, depending on your location.
The extra savings vary by state, with retirees in Western Australia potentially saving $32,440, South Australians up to $11,540, and New South Wales residents around $5,000 over their lifetimes.
Meanwhile, retirees in Victoria, Queensland, and Tasmania don’t receive additional state-based benefits but can still take advantage of the federal-level savings.
How to Check If You Qualify
If you think you might be eligible, don’t wait—the savings can make a huge difference in managing your retirement costs.
To apply, visit Services Australia’s website to check eligibility, understand income rules, and submit a claim.
For those already on the Age Pension, you won’t need the CSHC as you automatically receive a Pensioner Concession Card, which comes with its own set of benefits.
