Assessment of income for the Commonwealth Seniors Health Card

A much sought-after concession card for retiree clients who do not qualify for an income support payment, the Commonwealth Seniors Health Card (CSHC) confers a range of benefits and concessions.

CSHC benefits and concessions can include: 

• concessional rates on public transport,
• discounted motor vehicle registration, and
• discounts on utility bills and rates.

These discounts vary on a state and territory basis. Clients should refer to the relevant Government website to check any benefits and concessions they may be eligible for.

To qualify for the CSHC, clients must satisfy the requirements below on an ongoing basis:

• be Age Pension age (67 years old) or older if applying via Centrelink, or be Service Age (60 years old) or older if applying via the Department of Veterans’ Affairs (DVA) 
• meet residence rules 
• not be receiving an income support payment from Centrelink or DVA
• provide their Tax File Number and that of their partner (if applicable), or be exempt from doing so
• meet identity requirements; and
• meet the income test. 

Depending on their circumstances, clients can also hold a Low Income Health Card in addition to their CSHC. 

Income test in detail

When calculating how much income is counted for the CSHC income test, adjusted taxable income (ATI) is assessed. A client’s ATI includes:

• taxable income (less any assessable First Home Super Saver scheme released amounts)
• target foreign income
• total net investment losses
• employer-provided fringe benefits (in excess of $1,000)
• reportable superannuation contributions i.e. salary sacrifice and personal deductible contributions; and
• deemed income from account-based pensions (see ‘Grandfathering of ABPs’account based pensions’).

For couples, combined income is assessed even if a partner is not eligible for the card. Income limits are generally indexed on 20 September each year and current thresholds are detailed below:

* Income does not have to be above the tax-free threshold to be included. 

Grandfathering of account based pensions (ABPs)

From 1 January 2015, ABPs were included in the income test under the deeming provisions, using the person’s latest superannuation statement. Clients who own an ABP purchased before 1 January 2015 and held a CSHC on 31 December 2014 will not have their ABP included in the income test for as long as they:

• continue to hold a CSHC; and
• retain the same ABP.

Grandfathering will be lost and cannot be re-applied if clients cease to be the holder of a CSHC for any period of time, or if they purchase a new ABP after 31 December 2014. 

Reference tax year

When applying for the CSHC, a client’s ATI for the reference tax year is used and is generally evidenced by the tax notice of assessment (TNA) plus any other relevant documentation.

The reference tax year is usually the tax year immediately preceding the current tax year. Members of a couple must use the same reference tax year. If a TNA for the previous financial year is not available, a client can supply a TNA for the tax year immediately preceding the reference tax year e.g. if applying for the CSHC in May 2025, the 2023-24 TNA should be provided. If unavailable, the 2022-23 TNA should be provided.  

In some instances, clients can use an estimate of income however acceptable conditions for this requirement are limited to situations where retirement, ill-health, or other one-off event such as a natural disaster have occurred.

Next steps

If your clients have ATI just above the relevant threshold, an investment in Allianz Guaranteed Income for Life (AGILE) could help. To find out more about how a super investment in AGILE can help, contact us. For more information on the CSHC, visit servicesaustralia.gov.au or dva.gov.au for more information.

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