Higher income limits for Seniors Health Card

Higher income limits for Seniors Health Card

The legislation to significantly increase the cut-off limit for entitlement to the Seniors Health Card has been enacted.  Now the relevant cut-off limits are $90,000 for a single (previously $61,284) and $144,000 for a couple (previously $98,054).  These new limits will be subject to the normal annual indexation cycle which applies each September.  The new limits apply from 4 November 2022 and so will be indexed on 20 September 2023. 

Individuals who would otherwise be entitled to the age pension (or part age pension), but solely because of the application of the age pension means test, are entitled to the Seniors Health Card if they satisfy the Seniors Health Card income test.  There is no assets test for the Seniors Health Card.

The income test is based upon the individual’s taxable income adjusted for certain amounts.  The adjustment adds back to your taxable income, any tax deductions for investment losses, adds your reportable superannuation contributions (that is superannuation contributions made by your employer which are in excess of the mandatory superannuation contributions) and certain other items.  So long as adjusted taxable income is less than the relevant limit ($90,000 for singles and $144,000 for couples) – even if only a few dollars less – you will be entitled to the Seniors Health Card.

For many individuals and couples who have income streams from their own Self-Managed Superannuation Funds but which were excluded from even a part pension by the application of the age pension means test, may now (post 4 November 2022) be entitled to the Senior’s Health Card.  In short, the message is:  apply now for the Seniors Health Card.

This change has been made by the Social Services and Other Legislation Amendment (Lifting the Income Limit for the Commonwealth Seniors Health Card) Act 2022 (yes that’s the Act’s short title) which is Act No 43 of 2022.