New rules for Commonwealth Seniors Health Card

The government is tightening the rules around the Commonwealth Seniors Health Card (CSHC). 

From 1 January 2015, income from account-based pensions, unless grandfathered, will be included in the CSHC income test.1  

If you are a current CSHC holder and have an account-based pension started before 1 January 2015, then you will be grandfathered and no income will be counted for the CSHC income test.

If you are a CSHC holder and are considering starting an account-based pension, then you need to move quickly before the New Year to preserve your entitlements.

And there’s another incentive to get your retirement income organised. The government has started to index the CSHC income test limits annually to reflect inflation.

From 20 September this year the income test limits for CSHC holders—those who aren’t eligible for an age pension due to high income or asset levels—increased to $51,500 for single retirees and $82,4002  for couples.

It’s only a small change. But it means if you were just missing out on the CSHC, you may now qualify.

Get organised today!

So even if you don’t receive the age pension, the CSHC could help you save some money. And if you are an existing CSHC holder, then don’t forget to make sure your account-based pension is in place before 1 January 2015 to preserve your entitlements.

Whatever your situation, it’s a good idea to speak to someone today about getting your arrangements in place for tomorrow. Call us on 131 267 Monday to Friday from 8am to 8pm and Saturday and Sunday between 9am and 5pm AEST, or contact your financial adviser.

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© AMP Life Limited.  This article provides general information and hasn’t taken your circumstances into account.  It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, AMP does not guarantee that it is accurate or complete.  You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, AMP does not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.  

1 Your income is subject to deeming, which assumes a certain return is being made from your investments rather than the actual return.
2 The limit increases to $103,000 for couples if you’re separated by illness or respite care.