It is a common myth that older Australians are only eligible for discounted cards if they are receiving the age pension and this is simply NOT TRUE, so this brings up the question- What concession cards are available for seniors and pensioners? Not only are self-funded retirees eligible for some cards, but other benefits may be accessible even if you have not yet retired.
Australian elders and retirees may be qualified for one of several concession cards. Depending on the card, you may be eligible for lower-cost drugs as well as savings on services like public transportation, council rates, and power bills.
Seniors Card
Who is eligible?
Permanent residents can normally apply for a Seniors Card from their state or territory government once they reach 60 (or 65 in some cases) and are no longer working full-time.
The cards are not means tested, although eligibility and benefits differ based on where you live.
The benefits
Potential benefits include discounts on government services such as public transportation, council fees, and utilities like electricity. You will also be eligible for any discounts or special deals offered by commercial firms to Senior Cardholders.
How to apply
For more information on benefits and how to apply see the following guides:
Pensioner Concession Card
Who is eligible?
If you qualify for the Age Pension, even if it is only a partial pension, you will be eligible for the Pensioner Concession Card.
The benefits
A Pensioner Concession Card entitles you to cheaper health care and medicines.
How to apply
You don’t need to apply for a Pensioner Concession Card. If you qualify for the Age Pension, you will automatically receive one from Services Australia (formerly the Department of Human Services). This card is valid for two years and will be renewed automatically every two years if you’re still receiving the Age Pension.
You must let Services Australia know within 14 days if a change in your circumstances could affect your eligibility to continue receiving the Age Pension (and therefore your entitlement for renewal of a Pensioner Concession Card). For example, an increase in your income or assets could affect your eligibility.
If you leave Australia for longer than six weeks, you must also inform Services Australia and your Pensioner Concession Card will be cancelled.
Commonwealth Seniors Health Card
Who is eligible?
If you’re ineligible for the Pensioner Concession Card, all is not lost. You may qualify for the Commonwealth Seniors Health Card, which is the next best thing.
You must meet all the following criteria to qualify for a Commonwealth Seniors Health Card:
- You have reached your Age Pension eligibility age
- You’re not eligible to receive any payment from Services Australia (including the Age Pension) or from the Department of Veterans’ Affairs
- You’re an Australian resident and you live in Australia (or you hold a special category visa as a New Zealand citizen living in Australia)
- You satisfy a very generous annual income test (with different thresholds to the Age Pension income test).
The benefits
If you hold a Commonwealth Seniors Health Card, you’re entitled to receive the following federal government benefits:
- Cheaper medicines under the Pharmaceutical Benefits Scheme (PBS). The cost of medicines listed under the PBS are subsidised by the Australian Government
- Bulk-billed doctor visits (at the discretion of your chosen doctor)
- A larger Medicare refund on medical costs for any out-of-hospital costs when you reach the Medicare Safety Net. The Medicare Safety Net Threshold (set on 1 January each year) for concession card holders in 2023 is $770.30. If you exceed that amount in out-of-pocket hospital costs, you’ll be refunded 80% of out-of-pocket costs.
How to apply
You can apply for a Commonwealth Seniors Health Card from the Department of Human Services once you’ve reached your Age Pension eligibility age. Once issued, it is valid for one year. It will be automatically renewed by the Department of Human Services every year, provided you continue to satisfy all eligibility requirements.
The Commonwealth Seniors Health Card should not be confused with a Health Care Card or a Low Income Health Care Card. If you receive some forms of government payments (excluding the Age Pension), you may also be entitled to receive a Health Care Card. You can potentially receive the Low Income Health Care Card if you satisfy the requirements outlined in the next section.
Low Income Health Care Card
Who is eligible?
A Low Income Health Card is available if you meet all the following criteria:
- You’re over the age of 19
- You’re an Australian resident and you live in Australia, or you hold one of the following visas:
- A permanent resident visa
- A special category visa (New Zealand citizens)
- A partner provisional visa
- A temporary protection visa
- You satisfy an annual income test (that has different thresholds to the Age Pension income test).
The benefits
A Low Income Health Care Card provides similar benefits to a Commonwealth Seniors Health Card, namely:
- Cheaper medicines under the Pharmaceutical Benefits Scheme (PBS). The cost of medicines listed under the PBS are subsidised by the Australian Government
- Bulk-billed doctor visits (at the discretion of your chosen doctor)
- A larger Medicare refund on medical costs on any out-of-hospital costs when you reach the Medicare Safety Net. The Medicare Safety Net Threshold for concession card holders is $770.30 in 2023 (updated in January each year). If you exceed that amount in out-of-pocket hospital costs, you’ll be refunded 80% of out-of-pocket costs.
The main difference between the Commonwealth Seniors Health Card and the Low Income Health Card is the eligibility requirements.
How to apply
You must apply to Services Australia for a Low Income Health Care Card. Once issued, it’s valid for one year.
Other concession cards
If you have served with the Australian Defence Force, the Department of Veterans’ Affairs provides a range of healthcare concession cards.
Healthcare and pharmaceutical benefits are available, depending on whether you have seen active service during your time with the Australian Defence Force.
The bottom line
A range of concession cards with different eligibility requirements are available to Australian seniors and pensioners. These cards entitle holders to a range of benefits.
Senior Cards are available from your local state or territory government. If you’re receiving the Age Pension, you’ll be entitled to a Pensioner Concession Card. If you’re not receiving the Age Pension, you may be entitled to a Commonwealth Seniors Health Card.
To review your access to ongoing government benefits as well as reviewing your options with superannuation and other assets, please contact our office by making an enquiry through our website or calling us on 02 9188 1547 or email admin@rpwealthmanagement.com.au
If you like this article, you may also enjoy the following articles:
https://www.rpwealthmanagement.com.au/super-when-i-retire/
https://www.rpwealthmanagement.com.au/how-much-will-i-need-in-retirement/
https://www.rpwealthmanagement.com.au/tax-cuts/
The information in this website and the links has been prepared for general information purposes only by our office and does not take into account your personal objectives, financial situation or needs. It is not intended to provide commercial, financial, investment, accounting, tax, personal or legal advice. You should, before you make any decision regarding any information, strategies, or products mentioned on this website, consult a professional financial advisor to consider whether it is suitable and appropriate for you and your personal needs and circumstances.
