Many self-funded retirees assume they won’t be eligible for the Commonwealth Seniors Health Card (CSHC) because their assets are too high. But unlike the Age Pension, the CSHC is assessed on income only – there’s no assets test.
And that income isn’t based upon what your super or Account-Based Pension actually earns. Centrelink applies deeming rules, which estimate a standard rate of return regardless of your fund’s real performance. Thanks to these rules, even retirees with significant assets –in some cases, up to $4.5 million (singles) or $6.8 million (couples), – may still qualify, depending on how their income is assessed.
What counts as income?
To be eligible for the CSHC, Centrelink looks at:
- Your adjusted taxable income (e.g. rental income, dividends, distributions, taxable pensions)
- Plus a deemed income from your super accounts once you’ve reached Age Pension age – regardless of whether your super is in accumulation or -drawdown (decumulation) phase.
The income threshold (from 1 July 2025) is:
- $99,025 a year for singles
- $158,440 a year for couples (combined)
- Add $639.60 per year for each child in your care
Why the card matters:
Not just cheaper medicines
Yes, the CSHC can give you access to discounted PBS prescriptions and bulk-billed doctors’ visits – but its benefits go much further, particularly when it comes to reducing your out-of-hospital medical costs through the Medicare Safety Net.
How the CSHC boosts your Medicare rebates
The CSHC doesn’t guarantee bulk billing – doctors and clinics still decide what they charge. But it does mean that you’re classified as a concessional patient for the purpose of Medicare Safety Nets, so you will reach the Extended Medicare Safety Net threshold sooner.
This is particularly helpful if you:
- see specialists regularly,
- have multiple scans, tests or treatments each year or
- pay frequent out-of-pocket fees for medical appointments.
Once your out-of-pocket costs hit the concessional threshold – $834.50 in 2025 – Medicare starts covering 80% of future out-of-pocket costs for out-of-hospital services for the rest of the calendar year.
Compare that to the standard threshold of $2,615.50 for non-concession card holders, and the value becomes even clearer.
What’s covered under the Medicare Safety Net?
The safety nets apply to:
- GP and specialist appointments,
- outpatient tests and scans (e.g. pathology, x-rays, MRIs), and
- any out-of-hospital services listed on the Medicare Benefits Schedule (MBS).
They don’t cover hospital treatments or procedures that occur during hospital admission.
Want to explore which specific services may cost or be covered under Medicare? Use the official Medical Costs Finder to check typical out-of-pocket expenses and rebates for common services on the MBS.
PBS Safety Net vs Medicare Safety Net:
How to know the difference
The PBS Safety Net reduces the cost of prescription medications once you’ve spent a certain amount on eligible medicines. CSHC holders automatically qualify for concession pricing on PBS medications – paying only up to $7.70 per prescription (compared to $31.60 for general patients). After spending $277.20 in the 2025 calendar year, your PBS medicines become free for the rest of the year.
The Medicare Safety Net helps with out-of-hospital medical costs by increasing rebates once you pass a spending threshold. CSHC holders reach the concessional threshold sooner – just $834.50 in 2025 – after which Medicare pays 80% of any further out-of-pocket costs for the rest of the year.
Don’t forget to register as a couple or family
Individuals don’t need to register =because Medicare will track your spending automatically. But if you’re part of a couple or family, you need to register together to combine your medical expenses toward the Medicare Safety Net thresholds. You only need to do this once.
You can register online via myGov, use the Medicare app or call the Medicare program. Medicare will also notify you when you’re approaching a threshold.
Other CSHC benefits worth knowing
Depending on the state or territory in which you reside, the CSHC may also offer:
- Electricity or gas rebates
- cheaper public transport
- lower council rates
- free or discounted driver’s licence renewals, and even
- concessional postage rates.
Eligibility and availability vary by state and provider, so it’s always worth asking. You can check this summary of benefits across the states.
Not sure if you’re eligible?
It’s worth a second look.
You may have missed out before based upon incorrect assumptions. But the rules may now work in your favour, especially through the knowledge that your superannuation is deemed. Knowing how the card interacts with your retirement income and healthcare costs is one of the best ways to take charge of your financial wellbeing in retirement.
You can check your eligibility
Why not check your eligibility for the Commonwealth Seniors Health Card on our free and fast eligibility calculator.
Let’s continue the conversation..
Have you checked your eligibility for the CSHC recently or assumed it was out of reach?
Have you or someone you know hit the Medicare Safety Net earlier than expected and noticed the difference?
