Easy extra money: Are you still missing out?
James ran a ‘back of the envelope’ exercise the other day and surprised most members of our team with his conclusion that nearly 800,000 self-funded retirees are going without. This also left us wondering why are so many retirees are still missing out on extra money that they are entitled to. It came to light when James’ friend Rebecca mentioned that she had needed annual medical scans and was now $472 out of pocket for these tests. That’s a lot when you are living on a fixed income.
As she is a self-funded retiree, James asked her whether she had bothered to apply for a Commonwealth Seniors Health Card (CSHC) yet, given the dramatic increase in income thresholds last November.
Rebecca said that she had started the application but hadn’t got around to uploading it.
Which is a pity as the full amount of the scans would have been bulk-billed, thus saving her nearly $500.
Rebecca isn’t alone.
James calculates that nearly 800,000 self-funded retirees are also going without benefits and discounts because they simply haven’t applied.
Here’s his summary of the numbers:
- Firstly there are about 4.2 million Australians over 66 ½
- About 2.8m are already receiving the Age Pension or another form of income support such as a disability support pension.
- Another 420,000 already hold the CSHC
- This leaves 980,000 Australians over age 66 ½ that don’t receive any Government income support or hold the CSHC.
Now some of these people have very high incomes, well above the thresholds of $95,400 for a single person and $152,640 for a couple, but not many. Most self funded retirees are getting by on far less than that. So if we assume that maybe 1 in 5 are above those thresholds we are still left with 784,000 Australians that are likely to be eligible for the CSHC and haven’t yet applied.
And as long as they satisfy the other top level requirements, they can apply immediately and reap the benefits of these valuable concession cards.
Three easy steps to apply
There are many reasons why people haven’t and mightn’t apply for a Commonwealth Seniors Health Card. For some, they simply don’t know about concession cards for those who are self-funded. Others feel the application process will be stressful or onerous. Still others worry that they need to apply online and there are no other options. Maybe they just enjoy paying more than they need to for health expenses of perhaps don’t want to rely on the Government for any support. But for those that would like to get this card here is a short summary to the three steps involved.
- Know the rules
We have covered the rules many times, but, in brief, you need to:
- Be a resident of Australia for a required period of time
- Be of Age Pension age
- Have income which is under the new thresholds
- Choose the most suitable way to apply
There are at least five different ways you might apply – here’s a quick overview:
- Online via MyGov and Centrelink. You will need both accounts set up and can then work through the online application, including uploading documents verifying age, identity and some financial information
- Using a print application, which can be downloaded from the Centrelink-Services Australia website. You can then fill it in by hand and add copies of all required information before posting or lodging at a Centrelink office.
- Making an appointment at a Centrelink office for an officer to assist you to apply
- Seeking assistance from Retirement Essentials for a DIY support service to check your application before you upload
- Seeking assistance from Retirement Essentials for a Concierge service which means we check and upload all your information on your behalf.
- Assemble your documents
Centrelink requires proof of identity, proof of retirement income and recent tax assessments. Other information may also be required, depending upon your circumstances. (Make sure if you are uploading online you have files that can be successfully processed – images from mobile phones don’t always work).
How long does it take to be approved?
This can vary. In the interests of accuracy, we approached Centrelink for their estimates. We’ll update you once we hear back.
What are the main pitfalls?
Again we asked on your behalf and will let you know what they tell us.
What next if you are ineligible?
Not every knockback is an accurate reflection of your eligibility. One of our clients was refused a card after a five week assessment period. Initially, it was unclear why but, on checking, it seems Centrelink had not received the statement of income the client had lodged with his original application. Things can go astray – it’s always worth being clear why you are deemed ineligible and then appealing a decision if you believe this reason to be incorrect. You can get started by checking your eligibility.
There are other ways to save money on scans and X-rays.
In my experience, even though I have a health card, many radiologists will bulk bill, all you have to do is ask.
Also, you don’t have to use the radiologist on the doctors referral form and if the doctor doesn’t write “bulk bill” on the referral, ask him to put it on.
Some won’t do it so my assumption is they are receiving commissions, hence the ring around.
I have a Commonwealth Seniors Health Card and find there is little benefit having it.
Most GP’s/Doctors don’t accept it, specialists also don’t accept it. So most Medical bills I’m still out of pocket. Having rheumatoid arthritis, and optical problems are expensive with no benefit from CSHC. I can however get a little and I really mean a little bit on prescriptions, a bit on energy. Even local council don’t accept CSHC on rates or pet registration.
So the hype of having a card imo is over rated.
My husband is now on a Pension and thankfully his card is accepted, medically however it only covers him. Returns are still low as a for instance a dental filling got him a return/discount of approx $12.00 on a $200.00 filling. Needless to say we didn’t celebrate with champagne! So if you apply for a CSHC don’t expect too much in the way of a return.
If you have a CSHC and your husband receives Age Pension, shouldn’t you have a Pension Card too? And a pension payment for that matter, too?
This has to be one of the simplest Centrelink applications. It’s an income test not an asset test so in most cases all you need to upload is your latest tax return if you lodge one and a pension schedule from your accountant or pension fund provider.
The pension income is deemed at 0.25% for the first $53,600 and 2.25% for above $53,600. This will most commonly be less than the actual. All other income outside your pension account is captured in your tax return. So if the adjusted taxable income plus the deemed amount on the pension account total less than the new limits you qualify. If you had no other income outside your pension fund you could have $4m in your pension and still qualify as a single as the deemed income on this amount is less than $90,000.
My application was processed in 3 days. The big advantage of this card is you don’t need to reapply each year as you do with the Low Income Health Care Card. Many medical tests will either be bulk billed or reduced in price. For example a colonoscopy was reduced by $150. A mole mapping was bulk billed, previously $85. Local council gym entry discounted where the Seniors Card was not accepted. Some GP’s will bulk bill with the card or offer a reduced consultation fee. It’s an absolute winner.
It is worthwhile checking out if you qualify for the Lower Income Health Care Card. Not only do you qualify for concession meds, but also for energy and water concessions and you are more likely to be bill billed.
I applied in November 2022 and have heard nothing back from Govt.Did all the correct steps to through Centrelink but still nothing.I have since changed doctor to one who bulk bills everything so not sure what benifits I will get from the card should it ever arrive.Who should I contact to follow up on this.
Hi Paul, thank you for reaching out! To follow up with Centrelink regarding a claim for either the Age Pension or Commonwealth Seniors Health card, you should call 132 300, between 8am and 5pm, Monday to Friday.
If you are not on a pension nor previously registered with Centrelink and therefore do not yet have a Centrelink number, the process can be convoluted and frustrating. After completing the form, It took my wife and I a further two separate visits to Centrelink where we were made to wait each time for over an hour even though multiple staff were available. Our original application was approved subject to uploading of a Superfund verified income statement but was then subsequently rejected, because we were dependent on our Superannuation provider for the statement and unable to meet the 72 hour turn around time set by Centrelink. This required a reapplication process through the Centrelink office and two further online exchanges directly with the Centrelink office in Canberra. The process too two weeks and the approval a further two weeks.
Unfortunately this first experience with Centrelink left us with the distinct impression that it was Centrelink’s mission to complicate rather than facilitate the process.
The energy savings related to the CSHC in South Australia is a significant help as is the associated GP bulk billing associated with the card.