Discount and concession cards
Most of us love a discount. And when the cost of living is persistently high, concession cards are worth their weight in gold. There are a range of discount and concession cards available to older Australians. But the rules change all too frequently. Here’s a comprehensive update of which cards you may be entitled to, how to get them and how to use them.
Not all cards are the same. There are many different organisation which issue cards for seniors and retirees. Some offer discounts or concessions, some are free and some require you to join an organisation to receive one. Let’s start with the cards issued by the Federal Government.
Health care cards
What exactly is a Health care card? There are two broad definitions. Let’s start with the general term where a health care card is one of many types of cards which allow Australians significant concessions on medical, pharmaceutical, transport and energy costs. In more simple terms, a health care card has the following general characteristics:
- Entitlement rests on factors such as age, income, assets or welfare benefits
- Some will be automatically bestowed, others require a deliberate application
- Most are issued by Federal or State governments and are often tied to welfare eligibility
- Some are issued by not-for-profits or member organisations
Australian Government concession cards
The more narrow, specific definition of a Health Care Card is the one which is issued by Services Australia (i.e. Centrelink) to those who are on:
- Abstudy
- Austudy
- JobSeeker payments
- Parenting payments
- Special benefits or
- Youth Allowance.
More at Services Australia.
Health care cards for retirees
The most commonly used health care cards in retirement are those issued by the Federal Government.
These concession cards are available to people on an Age Pension but extend to self-funded retirees as well.
Here’s a quick explainer of the different cards available to retirees.
Health care cards for Age Pensioners
Pension Concession Card (PCC)
The PCC is automatically issued to those on an Age Pension, Disability Support Pension or in special circumstances, for those receiving a JobSeeker payment or Special Benefit.
Veteran Affairs Concessions Cards
This is a Pension Concession Card, issued by the Department of Veterans Affairs (DVA) for those on a service pension. Veterans and partners may also qualify for White, Gold or Orange Veterans’ cards with varying levels of concessions.
The benefits associated with these cards can include:
- cheaper prescription medicines under the Pharmaceutical Benefits Scheme
- bulk billing for doctor’s appointments, as decided by your doctor
- more refunds for medical expenses through the Medicare Safety Net
- discounted mail redirection through Australia Post.
State, territory governments and local councils or shires may also offer discounts to PCC or DVA card holders for:
- energy and electricity
- healthcare, including ambulance, dental and eye care
- public transport
Health care cards for those who do not qualify for the Age Pension
Lower Income Health Care Card
As the name suggests, this is a health care card for those who are not on an Age Pension but are earning very low income. No assets test applies, but financial assets and account based income streams are deemed to earn income. Read more on the limits here.
Commonwealth Seniors Health Card (CSHC)
The CSHC is for those of pension age (who do not qualify for the Age Pension), earning below the income threshold. This card is not automatically issued. To receive a CHSC you must meet the income thresholds of $99,025 a year if you’re single or $158,444 a year for couples (combined) effective September 20, 2024. Unlike the Age Pension, there are no assets thresholds for a CSHC. You just need to sit below the income thresholds. Your income will include deemed income on any account based income streams you own which will be included in your income assessment. When this scheme was expanded in 2022, hundreds of thousands of previously ineligible retirees became eligible for the significant discounts on medical, pharmaceutical, transport and energy costs. You can check your current eligibility here and request support for the application process from the Customer Support Team at Retirement Essentials.
State government concession cards
Also known as ‘Seniors Cards’, these are issued by individual state and territory governments. The rules vary from state to state, but generally speaking they are issued to those aged 60 and over, who are no longer working full-time.
We’ve linked to each state in the table below so you can check the specific detail for your own location. In addition to the Seniors Card, many states also offer a ‘Seniors Business Discount Card’ for those working too many hours to qualify for the former. This detail, too, can be seen by visiting the following links.
Seniors Cards by state or territory
Quick links to your health care card entitlements.
The National Seniors concessions calculator is a handy one-stop shop for those wishing to learn more about the entitlements on offer in their state. As we mentioned, some states or territories are far more generous to older Australians than others.
We ran a quick comparison to see the benefits received by Jane in Victoria, versus those of Rosemary in Western Australia – here’s how they compare:
Jane, Victoria on mains electricity, using seniors card and CSHC: total benefits $45
Rosemary, WA, on mains electricity, using the same two cards: Seniors Card benefit plus CSHC more than $2000
To better understand your own mix of entitlements (combining concession and health care cards), why not click this link. and see what you might get?
Don’t miss out
A high proportion of self-funded retirees have yet to apply for a Commonwealth Seniors Health Card. This means that their medical and pharmaceutical bills are likely to be higher than necessary. Don’t miss out, check if you are eligible now.
We trust that this update on concession and health care cards has been helpful, but if there are any aspects which continue to confuse you, we’d love to receive your questions.
Is there a Concession Card available to an Aged Pensioner who is retired and lives overseas?
Hi Barry, the concessions applicable to pensioners are only valid in Australia so no there is no concession card for people living overseas.
Is a Defined Benefit pension relevant to application for the Commonwealth health card? The recipient cannot withdraw funds from the pension which ceased upon the death of the recipient unless the recipient leaves behind a spouse.
Hi Judith, great question! The answer is that it can be relevant but is not always. Generally speaking if the DB is the only source of income then it is of no consequence but if there is other income earnt that warrants a tax return to be lodged then yes the DB will from part of Centrelink’s assessable income.
What’s the difference between a low income health care card and the Commonwealth Seniors health care card?
Hi Wen, good call out, the two are quite similar. The CSHC is only available to those aged 67 or older whereas the LIHCC does not have an age requirement. There are a couple of small differences in the assessment criteria also but the benefits of each are effectively the same.
Hi Steven, the benefits of LIHCC is not the same as CSHC. In my experience you do not qualify for reduced council rates, the discount on Car Registration is also less, there may be other differences depending upon the state you reside in.
Thanks I only have a NSW Seniors Card
please be sure to mention that WA is not “more generous to seniors” as you put it…because you get no concessions until you are 65 y.o. In other states, it is 60. So that is 5 years of benefits that you miss out on. If you even live that long.
Which is better the low income card or the seniors health card?
Hi Christine they are effectively the same card with the same benefits. The one that is best is the one you are eligible for which will largely be determined by your age. If 67 or older then CSHC if 66 or younger then LIHCC.
As a volunteer overseas and returning to Australia for a holiday can I apply for a Health Care card?
Hi Denise, so long as you meet the residency criteria and the overseas volunteering is temporary with Australia as your home then yes you can still apply but you need to be physically in Australia when you do.
Can you please outline the benefit differences between the LIHCC & the CSHC?
Hi Jan, the cards offer very similar benefits but thank you for the feedback. We may do an article comparing the two in future.
Thanks for this article and, especially your increased focus on the LIHCC. For Tasmanians, the LIHCC worth $960 concessions on electricity and water alone. In some cases, it can lead to bulk billing at GPs and some local government concessions. With the current deeming allowances, around 2.25% for a couple for income determinations, you can have a lot in your Super Account phase (almost $3.1 million!) and still qualify! The CSHC card, on the other hand does not entitle you to electricity or water concessions or council concessions in Tasmania, nor does it seem to help with bulk billing. (If you are 67 or older you can apply for both).
I’m on a full pension. I spend much time overseas but return regularly to my home in WA where I have a Stare concession card. I used to have a CWealth card but now denied apparently because of time abroad.
This is wrong because I can only use the card in Aust.
How can I fix?
Hi Duncan, if the CSHC has been formally cancelled by Centrelink then you would need to lodge a new claim to get approved for another one. If you are unsure if it has been formally cancelled or not I’d recommend calling Centrelink on 132 300 to confirm first in case it just has a block on it that they can remove.
Re CSHC eligibility, I have to ask you – in one particular year, if I dispose off my property and I have to report the capital gains in my Tax Return ( which is one time increase in my income ), does it make me ineligible for the CSHC for that year and I have to reapply in the next financial year? Is there any other provision in the rules so as to retain the card ?
Hi Naresh, so long as your overall income remains under the threshold then it doesn’t matter if it increases because you would remain eligible. If it increases above the threshold then yes you need to notify Centrelink as soon as you are aware as the card is to be cancelled and then you would re-apply the next year.
Hi Steve, re your comments to Naresh where you said: “so long as your overall income remains under the threshold then it doesn’t matter if it increases because you would remain eligible.” Could you please explain what is considered as additional income for the year that you sell a long held second house which is jointly owned by both myself 71 and my wife 69. Is the entire sale price considered as income for that year or is it only the capital gain over and above the original purchase price that is considered as income?
Hi terry, for a more thorough assessment of your specific situation, please book a consultation with one of our specialists HERE.