Senior's Health Card - modification of the income test

The Government has introduced a new Bill to implement its previously announced means test changes to entitlement to the Commonwealth Senior’s Health Card (which is an extremely attractive entitlement to have).

The changes are now set out in the Bill (Social Services and Other Legislation Amendment (2014 Budget Measures No 6) Bill 2014.  The change is to modify the current income test for entitlement to the Health Card so that superannuation pension income received after age 60 from an account based pension (which is tax free and under the current income test for the Seniors Card not counted) will be counted by applying a deeming test to the account balance.

This change will take place from 1 January 2015.  Consequently, from 1 January 2015 an account-based pension will be assessed under the incomes test for age pension and qualification for the Seniors Card in an identical manner.