Self funded retirees still want Pensioner Concession Cards

It can be very disappointing for self funded retirees to find out that they are not entitled to a Pensioner Concession Card.  The good news is that the Commonwealth Seniors Health Care Card can give self funded retirees who pass an income test the Commonwealth entitlements that others receive from the Pensioner Concession Card (like the pharmaceutical benefits and help with utilities bills).  This means that self funded retirees can continue to source good quality investments rather than work out ways to reduce their assets just to qualify for the card.

So why the Commonwealth Seniors Health Care Card?

Pensioner Concessions were so envied by self funded retirees that many tried ‘to get on the Pension’ just to have the Pensioner Concession Card.  Seniors would spend unwisely, gift lavishly and invest inappropriately to be entitled to as little as one dollar per fortnight of Age Pension and the coveted Pensioner Concession Card.

The Commonwealth realised that seniors could be better off by not depleting their assets or forgoing income just to be eligible for the Pensioner Concession Card.  Also some retirees with very low incomes were excluded from the Age Pension by the impact of the Asset Test.  Thus the Commonwealth reckoned that an overall economic and social benefit could be gained by offering the Pensioner Concessions to self funded retirees of moderate income.

Hence the Commonwealth Seniors Health Care Card.

Commonwealth funded benefits

Commonwealth Seniors Health Care Card holders are entitled to the Concession Rates for Pharmaceutical Benefits Scheme (PBS) pharmacy items. They also receive the Seniors Supplement paid on a quarterly basis via Centrelink.  The Seniors Supplement is intended to help with water and energy bills and replaces the previous ‘utilities allowance’.

Health care providers such as doctors and radiology practices often grant fee discounts to Commonwealth Seniors Health Care Card holders.  Each practice has its own ‘rules’ regarding fee scales and discounts so Commonwealth Seniors Health Care Card holders need to ask about concessions.

Some doctors will ‘bulk bill’ Commonwealth Seniors Health Care Card holders for consultations during ‘standard office hours’; but evening and weekend appointments and consultations for ‘travel medicine’ are likely to be charged on a full fee basis.

Concessions from other providers

The Commonwealth Seniors Health Care Card does not provide entitlement to ‘Pensioner Discounts’ from State or local government fees and charges.  However, the Victorian government offers a Seniors Card to any Victorian resident who has attained age 60 years and is not actively engaged in the paid workforce for more than 35 hours each week.  Seniors Card holders are eligible for significant concessions on metropolitan public transport (other states have similar schemes and reciprocal rights).

Many small businesses give ‘seniors discounts’ when requested.  To avoid offence to younger people and committed workers, the ‘seniors discounts’ are rarely offered but widely granted.

Eligibility for the Commonwealth Seniors Health Care Card

The Commonwealth Seniors Health Care Card is available for people who have attained their Age Pension Age and have an adjusted taxable income not exceeding $50,000 per annum for Single Person or $80,000 per annum combined for a ‘couple living together.’  The adjusted taxable income limit for a ‘couple separated by illness’ is $100,000 per annum.  These income limits are fixed in legislation and not subject to any form of indexation.

Applications for Commonwealth Seniors Health Care Card

Self funded retirees may apply to Centrelink for the Commonwealth Seniors Health Care Card only after they have attained their Age Pension Age.  Early applications will be rejected.  In contrast, Age Pension applications may be lodged well in advance.
The Application form for the Commonwealth Seniors Health Care Card is a ‘short form’ booklet.

Read more from Centrelink re Seniors Health Card

Help is available for people who are stressed by Centrelink forms from us here at Financial Care Services.

If you would like further confidential, independent and professional advice about Centrelink, lifestyle or aged care advice, please contact Christine Hopper (03) 9808 0338.