As we know from the popularity of the National Seniors Concession Calculator, seniors strongly value the concessions offered to them via state, territory, local and federal governments.   

One of the main concession cards in Australia is the Commonwealth Seniors Health Card (CSHC). This card is available to low-income self-funded retirees who meet income test eligibility rules.   

During the recent election, the Coalition and Labor promised to increase the income test thresholds so that Commonwealth Seniors Health Card holders could access health care and other concessions.   

Because this increase required legislative change, there was a delay. Increased income test thresholds have been delayed further because an unrelated amendment forced the legislation to be sent to the lower house. 

Under current eligibility rules, you can access the CSHC if your income is below a certain threshold:  

• Singles: $61,284 a year 

• Couples (combined): $98,054 a year 

Under the proposed changes, you will be able to earn up to the following thresholds:  

• Singles: $90,000 a year 

• Couples (combined): $144,000 a year 

Assessable income under the CSHC income test includes a combination of actual income and deemed income from your assets.  

Adjusted taxable income comprises of:  

• Taxable income

• Target foreign income  

• Total net investment losses  

• Employer-provided benefits  

• Reportable superannuation contributions. 

Deemed income from assets is only from account-based income streams (not from any other financial assets you own). An account-based income stream is purchased with superannuation money, commonly known as an allocated or transition to retirement pension.  

While regular deeming rates are 0.25 per cent for the first $56,400 of your financial assets and 2.25 per cent for anything over $56,400 if you are single ($93,600 for couples), non-pensioners are deemed at a slightly different rate.  

If you are a couple and neither gets a pension, your joint financial assets are deemed to earn 0.25 per cent up to $46,800. Anything over $46,800 is deemed to earn 2.25 per cent. 

After the legislation was passed in the lower house using the government’s majority, it was sent to the Senate for approval. It was here that an amendment to the legislation was put forward by the Coalition and supported by the crossbench.  

The amendment included changes to the current Work Bonus limit to allow pensioners to earn double what they currently can without affecting their pension.  

While National Seniors supports changes to income test rules, we were disappointed this has led to a delay in passing the CSHC changes. 

We would prefer to see the original CSHC legislation passed at the beginning of the next sitting so eligible retirees access concessions as soon as possible.

Once changes to income test rules are passed, we would like to see Labor, the Coalition, and crossbench consider our proposal to trial an opt-in income test exemption. The opt-in income test exemption would be for pensioners who want to work in the Health and Social Assistance Sector as a first step in easing labour shortages.

The workforce crisis is growing, so we need to move fast to mobilise workers now.  

The latest job figures show there are more than 74,000 vacancies in the care sector, so there is no time to lose. The Albanese government said it wants to put the care back into aged care, and there's now a way to do it.