While inflation has eased off a little, prices are still increasing annually at a rate of 2.4% according to the latest annual CPI data for 31 March 2025.
Those living on a restricted retirement income are all too aware of the difference that higher prices make to monthly budgets, particularly on items such as insurance, medical visits and pharmaceutical needs.
So it remains surprising that nearly one quarter of all retirees (about one million) are continuing to miss out on significant savings. This was highlighted by General Manager of Services Australia, Hank Jongen, on breakfast TV.
The savings referred to are those which can be accessed by holders of the Commonwealth Seniors Health Card (CSHC). Whilst a Pension Concession Card (PCC) is automatically issued to the two-thirds of retirees who qualify for a full or part-Age Pension (after age 67), the very handy concession card for those who are self-funded tends to slip right under the radar. Which is surprising, as, according to Hank Jongen, it can be worth up to $3000 per annum or $60,000 across a 20-year retirement.
Which discounts are on offer?
The benefits of the CSHC vary depending upon your postcode. Health items (fully or partially covered) include medical bills (where bulk billing is available), medicines, imaging and safety net refunds. Depending upon your state or territory, you may also enjoy discounts to energy bills, rates, transport, ambulance, dental, eyecare and other items.
So why don’t the 80% of Australians who are self-funded in retirement – and have yet to apply – just get hold of one of these valuable cards? There are three main barriers – none of which is insurmountable. Let’s tackle them one at a time:
1. Many retirees don’t know about the CSHC:
Ignorance is far from bliss in this case
Sometimes government benefits aren’t automatically apparent to those who are eligible. This is definitely the case when it comes to the CSHC. Many people who miss out on an Age Pension entitlement assume that that’s all there is to be had. But in recognition of those who live off their own savings, the Commonwealth Seniors Health Card was introduced way back in 1994. Unlike the Age Pension means test, where both income and assets are counted, the CSHC is assessed using income only. The current limits are:
Singles: $99,025
Couples: $158,440
2. Many automatically assume they won’t qualify:
But they’re wrong
Previous to a significant increase to the income limits in 2022, many self-funded retirees simply earned too much to qualify for this concession card. But on 1 July 2022, the limits were substantially increased to those above, which means that the vast bulk of self-funded retirees can now qualify. Income includes deemed income on super balances and other financial investments – and deeming rates remain very low. There are also some exemptions made for certain annuities and lifetime income streams.
3. Many think the application process is too hard:
It doesn’t have to be!
Here are three ways that you can apply today:
1. Seek assistance by phone
The Retirement Essentials team offers a 30-minute consult for $155 during which we help you answer all the required questions.
2. Delegate to Retirement Essentials
Many self-funded retirees do not wish to process this application themselves. For such members we offer the CSHC Application Service.
3. Do it yourself
If you are confident you can do it yourself and don’t need our help, you can supply your information online or you can download the paper form and submit by mail or by dropping it into a local Services Australia office. Remember, you will need a Centrelink Customer Reference Number (CRN) to complete this application.
Handy hint
As soon as you have applied, start stockpiling receipts for your out-of-pocket medical expenses and any pharmaceutical bills. When you qualify, many of these expenses can be claimed back to the date of your application.
Read the full detail on the CSHC and some Frequently Asked Questions here.
Have you ever tried to apply for a CSHC?
If so, was it a reasonable experience?
Any thoughts on why so many people still haven’t applied?
Yes I am 77 self funded retiree Yes I tried to complete with help from centre link first I needed a number from centre link. That took ages then we jointly started completing the file after 40 minutes we both gave up as many of the requested information was not accepted so frustrating
Hi Angus, this can happen – the technology isn’t always our friend when it comes to government websites. Please feel free to let us know if you’d like us to contact you re further support if you decide to reapply.
It was my first experience with Centrelink. I had to jump through hoops to get the CHSC.
Having got it, I find it useless. The local pharmacy shrugged their shoulders when I fished it out.
Origin Energy did the same.
Just what can the card be used for
Hi John, Many thanks for sharing your thoughts so quickly – the CSHC is very useful on some bills in some states and territories – and less so in others (for instance, Victoria), but it works well nationally for items like medical imaging etc. Which state do you live in so we can direct you to likely benefits? kind regards, Kaye
we have had the health care card for a few years. every year I resubmit once they give access. every year even though I have put it in on time. their assessment will always be after the expiry date of the exiting card. is any one else experiencing this. I know we can claim back once approved. I find the wait stressful.
I applied for a CSHC online about 3 years ago. It took ages as I had to get residency dates etc, previous countries residency dates (Zimbabwe, Greece, UK) date of arrival in Australia (1988). The response I got was DECLINED – no reason and no other comms. Went into a Centrelink office this year and reapplied – no hassle at all but about a month.