New rules for Commonwealth Seniors Health Card

The government is tightening the rules around the Commonwealth Seniors Health Card (CSHC). From 1 January 2015, the income from all new account-based pensions will be included in the CSHC income test ¹. 

So if you haven’t set up an account-based pension yet, you need to move quickly before the New Year. And if you already have an account-based pension, it’s worth checking your arrangements so you can preserve your entitlements.

What’s so good about the CSHC anyway? The CSHC offers a host of benefits, such as cheaper medicine, discounted rail fares and bulk-billing at the doctor’s. And these extra savings can really add up!

And there’s another incentive to get your retirement income organised. The government has started to index the 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 $51,250 for single retirees and $82,000  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. But 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 your financial adviser today about getting your arrangements in place for tomorrow.

[1] Your income is subject to deeming, which assumes a certain return is being made from your investments rather than the actual return.

[1] The limit increases to $103,000 for couples if you’re separated by illness or respite care.

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