Which concession card is best for Ken?
Last week we had a call from Ken who was very confused about his health card entitlement. Which prompted us to share the following comparison of concession cards so you know which one best suits your age and stage.
Ken is single and aged 65. He is working part-time as a cleaner, earning about $35,000 per annum. As a low-income earner, he would like more support with his medical bills. He wondered if he has to wait until he reaches Age Pension age, or if there is a card, such as the Commonwealth Seniors Health Card, that he could apply for straight away.
In essence, Ken is asking about the difference between three individual Health Concession Cards:
- The Low Income Health Care card
- The Pension Concession Card and
- The Commonwealth Seniors Health Card
Here’s how each might suit a different type of retiree.
Low Income Health Care Card
This is a general Health Concession Card for Australians aged 19 and over. It has no asset test. The income test limits, per annum, are:
Single, no children $36,504
Couple, combined, no children $64,376
Assessment, including deeming, includes income from employment, government benefits, superannuation income streams, and financial investments. A LIHC needs to be applied for on an annual basis. Generally speaking, LIHC holders do not receive economic support payments such as the recent Covid-19 payments received by many other card holders.
Pension Concession Card
This card is automatically awarded to those who qualify for an Age Pension. Eligibility requirements include being Age Pension age (now 66.5 but 67 from 1 July), an Australian citizen, and meeting the income and assets test. The income test thresholds [ https://retirementessentials.com.au/age-pension/eligibility/ ] are not the same as the above income limits for the Low Income Health Card, varying for a full or part-Age Pension.
Commonwealth Seniors Health Card
This Health Concession Card is for those who have reached Age Pension age, but do not qualify for an Age Pension, usually self-funded retirees. There is no assets test, but there are income thresholds:
Singles $90,000
Couples (combined) $144,000
Are concession cards worth the effort of applying?
As with the eligibility criteria for each card, benefits can vary. Additionally, many benefits are state or territory-based, with Victorians receiving fewer benefits and Queenslanders seemingly receiving the most. Benefits offered can include:
- cheaper prescription medicines,
- bulk billed medical appointments
as well as discounts on:
- electricity and gas bills
- property and water rates
- ambulance services
- dental treatment
- eye care
- public transport fares.
In addition over the last few years many additional payments have been made to concessions card holders including during the GFC, several stimulus payments during the Covid pandemic and most recently the energy bill reductions announced in the Federal budget.
What is best for Ken?
As Ken is below Age Pension age, he cannot qualify for either an Age Pension (which comes with a Pension Concession Card or a Commonwealth Seniors Health Card. He can, however, immediately apply for a Low Income Health Card and when he turns 67, see if he is eligible for an Age Pension, or a Commonwealth Seniors Health Card in order to maintain his health, energy and transport discounts.
We hope this clears up some of the confusion about government concession cards, but if you would like a fuller explanation, there’s one right here.
Retirement Essentials has a free calculator which will help you determine if you are eligible for the Age Pension, and therefore also the Pension Concession Card or a Commonwealth Seniors Health Card. You can find our calculator here. Or if you would like to further discuss your own entitlements situation you can book a consultation here.
What’s your situation?
Do you have a concession card?
Are you finding it useful?
We are a couple both over 75 with a combination income of around $20,000. We own our own home. Apart from the aged pension, what concessions other than on pharmaceuticals are we entitled to, and how do we access them?
Hi. Thank you for your insightful articles. I am of pensionable age (74), was born and worked in Australia until my retirement. I am eligible for a small aged pension BUT I am currently residing in Malaysia. Is there any way I can use your services to apply for a pension from here, or do I have to be in Australia? If I have to be in Australia, how long do I have to be residing there before I can apply? Also can I apply for a concession card from here? Finally,(sorry for asking so much), I have lost my Medicare card. Can you assist in getting me a replacement?
Thank you
Hi Glenn, thanks for the compliment on our articles! We would not be able to assist you with a new Medicare card however we would be happy to have a consultation with you where we can explain the rules around how you can apply and timeframe to remain in Australia. We would need to call an Australian mb or we could do a video meeting if you do not have one. To make a booking CLICK HERE.
Good Morning, I am 67.5, am retired and do not have an income, so I am drawing on my superannuation as a pension. I do not qualify for an aged pension. Can you tell me what concession card I am entitled to apart from a seniors card please.
Debra Diver
I am 73. I get $968.66 in PSS pension per fortnight and $2320 per fortnight in salary, both after tax. On raw figures this gives me $85,488 annually after tax. My question is: do I qualify for the Commonwealth Health Card?
Hi Patrick, thanks for your question. I’m unsure what your household situation is but the Commonwealth Seniors Health Card has separate income test threshold levels which are assessed using Adjusted Taxable Income.
The Services Australia website confirms this information to meet the income test, you must earn less than the following:
$90,000 a year if you’re single
$144,000 a year for couples
$180,000 a year for couples separated by illness, respite care or prison.
Add $639.60 to these amounts for each child in your care.
There is no assets test.
Sent an email in regards to the Low Income Health card. I was informed by Sam that they deal with the Pension Concession card and the Commonwealth Seniors Health card. Not the Low Income Health card. Is this correct?
hi Vanni, thanks for your question.
Yes Sam is correct, at Retirement Essentials we’ve simplified the process to make it easy for senior Australians to get and keep their Centrelink Entitlements.
At Retirement Essentials, we specialise in the area assisting senior Australians, who are approaching or have reached Age Pension age.
By comparison, the Low Income Health Care Card is a general Health Concession Card for Australians aged 19 and over.
I am 70 hubby 64 and still working. brings home 900. per week. am I entitled to any thing.
Hi Vicki, Thanks for your query. You may potentially be entitled to something, but it will depend on what other income and assets you have in addition to this. For a quick look at potential entitlements I suggest taking a look at our Age Pension Eligibility Calculator which you can access by clicking here. You need to qualify for something under both the income test and asset test thresholds to access entitlements. You can book a consultation if you want to chat to someone about your specific circumstances and have someone explain in simple terms how it all works, we offer entitlements consultations which you can book by clicking here.
Good morning, I am 64 and from WA.
Recently I returned from a holiday over east and found that if I lived over there I would be elegible for a seniors card at age 60. In WA I’m not eligible until I’m 65, being born after 30th July in 1959.
My brother in law and sister both live in Tasmania are both younger than me and have had seniors cards since they turned 60. They can both use their seniors card in WA when visiting here. Where I must wait until 65 to be eligible for the same concessions.
This seems considerably unfair and perhaps discriminatory to Western Australians of a similar age? Are you able to explain why this is so please? Thank you Michael
Hi Michael, thanks for sharing what it is like in WA! I personally wasn’t aware the age for the seniors card was different in WA to other states so had to do some digging. I found that it was changed by a previous government as part of the 2015-16 budget. The decision was based on the projected increase in the number of seniors in Western Australia from 458,000 to 865,000 over the next 20 years.
Good Afternoon, I’m 65 and have recently started to receive Carers payment, which includes a pension card. Prior to that I was on a Low Income Health card. Just been notified by Centrelink about renewing my LI Health card, but do I need to now? I don’t need both cards.
Regards, Alan
Hi Alan, thanks for your comment! You are correct that you only need the one card. The Pensioner Concession Card is the one card to rule them all.