Financial Care Services Newsletter

by Christine Hopper
Volume 12 Edition 10 – 31 October 2022

Christine at Financial Care Services, the specialist adviser to seniors in transition to new lifestyles

Low Income Health Card

When your income is low but you do not qualify for a Centrelink income support benefit, a Low Income Health Card might give some discounts on your bills.

The Low Income Health Card provides similar discounts to the Pensioner Concession Card for PBS medications and many utility bills.

There is no Asset Test for the Low Income Health Card.

But you must have a very modest income for the whole period that you hold a Low Income Health Card.
The Low Income Health Card definition of ‘income’ is different from the Pensioner assessable income definition.

When only one member of a retiree couple is old enough for an Age Pension, the other younger partner might be eligible for a Low Income Health Card.
Then they could both be eligible for PBS medications at the Pensioner Concession rate.

What benefits are available to holders of the Low Income Health Card

The Low Income Health Card provides Commonwealth funded discounts for citizens who have ‘low incomes’ but are not eligible for an ‘income support’ payment from Centrelink.

The main benefit of a Low Income Health Card is paying only the ‘concession’ price for PBS medications.
Holders of the Low Income Health Card are also eligible for some discounts on utility bills.

In Victoria, Low Income Health Card holders can claim capped discounts on water and sewerage charges, together with electricity and gas services supplied to their homes.

To keep you active in your community, holders of the Low Income Health Card are entitled to concession fares on public transport and halving of the Victorian motor registration fee.
There is no discount on the TAC part of the fee.

In Victoria, the Low Income Health Card allows you to access ‘community health centres’ and public dental services.
Doctor consultations are generally bulk billed at community health centres.
The community health centres charge modest levels of fees for dental and allied health services, such as physiotherapy.
Pensioner Concession Card holders are also eligible to access community health centres.

Who can apply for a Low Income Health Card

The Low Income Health Card is available to Australian citizens and long standing permanent residents.
You cannot apply for the Low Income Health Card until you have completed four years living in Australia as a citizen or whilst covered by a permanent residency visa.
But the waiting periods could be reduced if you are covered by a refugee or humanitarian visa.

Centrelink will check your residency status when you lodge a claim for the Low Income Health Card.
Remember, Centrelink require ‘proof of identity’ from every person who claims a ‘social security’ benefit.
You must ‘prove’ your Australian citizenship or ‘permanent residency’ status as part of your ‘proof of identity’.
Centrelink would then have enough documentation to check if you had satisfied the ‘Australian residency’ requirements for a Low Income Health Card.

You must remain in Australia to retain, use and later renew, your Low Income Health Card.

Can I have both a Low Income Health Card and a Commonwealth Seniors Health Card

Yes, if you have reached your Age Pension Age and you satisfy both of the Health Card income tests then you are allowed to hold both the Low Income Health Card and the Commonwealth Seniors Health Card.

Remember that whilst the definitions of ‘income’ look to be the same for these Health Cards, the test periods are different.
The Low Income Health Card is checked on an eight week rolling basis.
In contrast, the Commonwealth Seniors Health Card income test is applied to your adjusted taxable income measured over a full financial year.

Both the Low Income Health Card and the Commonwealth Seniors Health Card provide for PBS medications at the concession prices.

The Low Income Health Card also provides discounts on utuility bills and public transport fares.

What are the ‘income’ criteria for the Low Income Health Card

Your ‘income’ for the Low Income Health Card Income Test includes your actual earned income from work or business, any Centrelink or DVA income support payments that you or your partner had received, any rental income plus the ‘deemed investment income’ from your financial assets.

Your ‘income’ could also include an ‘adjustment’ for any lump sum payments that you received in the last year. Centrelink look at compensation payments for injuries or other losses, redundancy payments and lump sum leave payments when you terminated employment.

Centrelink check your total income for the last eight weeks against the limit for the Low Income Health Card for your personal circumstances.

The income limits for the Low Income Health Card are reviewed regularly and usually increase slightly each year.
As at October 2022, the eight week income limit for a new Low Income Health Card is $5,440.00 for a single person.
The single person limit is equivalent to an average weekly income of $680.00.

If you live with a domestic partner then your total joint income must not exceed $9,328.00 for you to qualify for a Low Income Health Card.
Your total joint income including any Centrelink or DVA Pension for your partner, must not exceed $1,166.00 averaged over eight weeks, if you are to hold a Low Income Health Card as a member of a couple at Centrelink.
Remember that at Centrelink you cannot be treated as a single person just because you and your partner keep your finances separate.

How long is a Low Income Health Card valid

A Low Income Health Card is valid for a maximum of twelve months, one year.
Your Low Income Health Card will show an Expiry Date.

You would cease to be eligible to hold a Low Income Health Card and must stop using your current Low Income Health Card, if your ‘income’ increases beyond the limits for continuing with a Low Income Health Card.

The eight week total income cut-off level for continuing to hold a Low Income Health Card is 25% more than the eight week total income limit for starting, or renewing, a Low Income Health Card.

Your Low Income Health Card could be cancelled if you leave Australia or your visa status changes.
This means that you cannot continue to claim the Low Income Health Card discounts for your Australian home whilst you are away from Australia.

How do you renew a Low Income Health Card

Centrelink could send you a reminder notice that your Low Income Health Card is about to expire together with a renewal application form.

You could reapply for the Low Income Health Card without waiting for Centrelink to remind you.

You must show that your ‘income’ is back below the cut-off limit for the eight weeks before your Low Income Health Card renewal date.

Centrelink would check that your income is under the limit for your personal circumstances and that you are still in Australia as a citizen or on an appropriate visa, before granting you a new Low Income Health Card.

Help with checking your situation against the qualification and means tests.

Christine Hopper helps clients check their situation against the residency and means tests for the Low Income Health Card and other Centrelink administered benefits.

Contact Christine for the relevant Financial Care Services data form to prepare for your ‘personal financial factual information‘ consultation with Christine.
You will also receive the Client Services Guide for Christine Hopper that gives you essential information about how Christine works with her clients.

You could then meet with Christine to look at your personal situation.
Christine could explain how Centrelink could calculate ‘income’ for your situation.

If the means tests would exclude you from any Pension then you could consider a Low Income Health Card and/or a Commonwealth Seniors Health Card.
You could ask Christine for the Financial Care Services Commonwealth Seniors Health Card illustration data form to help you collect the data needed to estimate your ‘adjusted taxable income.’.

A younger partner might be eligible for a Low Income Health Card when the older partner has an Age Pension.

If you have not been excluded from the Age Pension by the age or residency qualifications and you hope that the means tests would not exclude you then you could apply for an Age Pension.

Christine helps clients to complete the Age Pension Claim forms.

Christine at Financial Care Services your independent adviser

Christine at Financial Care Services is an independent adviser specialising in retirees of modest means and aged care entrants.
Our core values include working with clients in claiming DVA and Centrelink entitlements.

Christine at Financial Care Services is here to answer your Health Card and Age Pension questions and guide your understanding of aged care costs.

Help with Centrelink challenges is available from Christine Hopper at Financial Care Services, the specialist adviser to seniors in transition to new lifestyles.

Christine has neat handwriting just right for inserting your data into small printed spaces.
She helps clients complete Centrelink forms.
Christine could help you with collating your supporting documents and then mailing your form to Centrelink.

Assistance with completing Age Pension, Low Income Health Card and Commonwealth Seniors Health Card Claims and the Commonwealth aged care means testing forms is available to clients of Christine at Financial Care Services.

Christine charges fees based on the work involved in advising you about health cards, pensions and aged care fee solutions.

To make an appointment for confidential, independent and professional advice about aged care, retirement lifestyle costs, granny flat or Age Pension issues please contact Christine Hopper or call +61 3 9808 0338.
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Christine Hopper
Financial Care Services
Independent aged care, strategic lifestyle and Social Security advice for seniors in Melbourne, Victoria, Australia
Telephone – call +61 3 9808 0338
Email – contact info@financialcareservices.com.au
Address – mail to 2B Thomas Street, Camberwell Victoria 3124
Website – visit financialcareservices.com.au
LinkedIn – connect https://www.linkedin.com/in/christinehopper1
Past newsletters – see http://financialcareservices.com.au/newsletters/
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Disclaimer: The information contained in this newsletter is of a general nature only and does not constitute “financial advice”.
All eligibility for Commonwealth benefits will be determined by Centrelink or DVA, based on your personal position as documented and the legislation and Regulations in force at that time.