Margaret is 72, owns her home, and lives on a $500,000 account-based pension from her super plus a few thousand dollars a year in bank interest. She doesn’t get a cent of Age Pension, so she assumed there was no point talking to Centrelink. She was wrong. She almost certainly qualifies for the Commonwealth Seniors Health Card, and it saves her money every time she fills a script.
The Commonwealth Seniors Health Card (CSHC) is the card for self-funded retirees. It has no assets test at all, the income limit is far higher than most people expect, and plenty of retirees who would qualify have never applied. Here’s who gets it, what it’s worth, and how it compares with the Pensioner Concession Card.
Who can get the card
According to Services Australia, you need to meet all of these:
- You’ve reached Age Pension age, which is currently 67.
- You meet the residence rules.
- You’re not getting an income support payment (like the Age Pension) from Centrelink or the Department of Veterans’ Affairs.
- You give your tax file number (and your partner’s, if you have one), unless you’re exempt.
- You meet identity requirements and the income test.
That third point matters. If you get even a small part Age Pension, you already have the Pensioner Concession Card, which is the better card, so you can’t hold both. The CSHC is for people who earn or own too much for the pension.
The income test, in plain terms
There’s no assets test. You could have millions in super, shares and property and still qualify, as long as your income is under the limit. From 20 September 2026, the income limits are:
| Your situation | Annual income must be under |
|---|---|
| Single | $105,048 |
| Couple (combined) | $168,076 |
| Couple separated by illness, respite care or prison (combined) | $210,096 |
Add $639.60 to these amounts for each child in your care. The limits are reviewed every 20 September in line with the Consumer Price Index, so check the official page for the current figures.
What counts as “income” is the part people get wrong. Centrelink adds together two things.
1. Your adjusted taxable income
This starts with your taxable income from your tax return (wages, rent, dividends, interest, capital gains and so on), then adds back some items that don’t show up there. According to Services Australia’s explanation of adjusted taxable income, these include foreign income, total net investment losses (so negative gearing gets added back), reportable fringe benefits, reportable super contributions and certain tax-free pensions or benefits. If you have a partner, their adjusted taxable income counts too.
2. Deemed income from account-based pensions
Here’s the twist. For most people over 60, payments from an account-based pension in super are tax-free, so they don’t appear in taxable income at all. Instead, Centrelink applies deeming to the account balance. It doesn’t matter how much you actually draw down. It assumes the balance earns a set rate and adds that figure to your income.
From 20 September 2026, the deeming rates are 1.75% and 3.75%. For a couple where neither of you gets a pension, the lower rate applies to the first $55,300 of each person’s financial assets, and the higher rate to the rest. For a single person the lower-rate threshold is $66,800. Our guide to how deeming rates work goes into this in more detail.
There’s an older exception. An account-based pension isn’t deemed for CSHC purposes if you bought it before 1 January 2015, haven’t changed it since, and have held the card continuously since before that date. Most people applying today won’t fall into that group, but if you do, don’t roll your pension over without checking first. You could lose the exemption.
Worked examples
All figures use the rates and limits in place from 20 September 2026.
Margaret, single, $500,000 account-based pension, $8,000 of other taxable income. Her deemed income is $66,800 at 1.75% ($1,169) plus $433,200 at 3.75% ($16,245), so $17,414. Add her $8,000 and her test income is about $25,400. That’s a long way under $105,048. She qualifies easily.
Ron and Helen, a couple, $700,000 each in account-based pensions, plus $40,000 of rent from an investment unit. Each of them is deemed to earn $967.75 on the first $55,300 and $24,176.25 on the remaining $644,700, which is $25,144 each, or $50,288 together. Add the $40,000 rent and they’re at roughly $90,300, well under the $168,076 couple limit, even with $1.4 million in super between them.
Graham, single, $1.5 million account-based pension, $55,000 of dividends and rent. His deemed income is $54,914. Add $55,000 and he’s at about $109,900, which is just over the $105,048 limit. No card, at least for now.
The lesson is that the income test is generous to retirees whose wealth sits in super, and tougher on those with large taxable investments outside super. If you’re anywhere near the line, it’s worth running your own numbers.
What the card actually gets you
The CSHC is mainly a health card. According to the Department of Veterans’ Affairs, which issues the same card to eligible veterans, the benefits include:
- Cheaper PBS medicines. You pay the concessional rate for prescriptions on the Pharmaceutical Benefits Scheme, which is $7.70 per script at the time of writing, instead of the general rate.
- Free scripts after the PBS Safety Net. Once your spending reaches the PBS Safety Net limit in a calendar year, further PBS scripts are free for the rest of that year.
- Possible bulk billing. GPs may bulk bill concession card holders, though it’s up to each practice.
- Medicare Safety Net help, so you get more back on medical costs once you’ve spent up to the limit, which matters if you see the doctor or have tests often.
- Other concessions that may cover electricity and gas, property and water rates, ambulance, dental, eye care and public transport. These are set by state and territory governments and businesses, not the federal government, so they vary a lot from place to place.
Our honest view is that if you take several regular medications, the card pays for itself within months. Even if you’re healthy now, it costs nothing to hold and the card is valid for two years at a time. Services Australia sends a replacement before it expires if you’re still eligible.
How it differs from the Pensioner Concession Card
The Pensioner Concession Card (PCC) comes automatically with the Age Pension and some other payments. You don’t apply for it. The two cards overlap on the federal health benefits, but they’re not the same.
| Commonwealth Seniors Health Card | Pensioner Concession Card | |
|---|---|---|
| Who gets it | Age Pension age, not on a pension, under the income limit | People receiving the Age Pension and certain other payments |
| Assets test | None | Yes, through the pension itself |
| How you get it | You apply | Sent automatically |
| PBS concessional scripts | Yes | Yes |
| State and local concessions | Some, varies by state | Usually more, varies by state |
The gap is mainly at state and council level. Depending on where you live, some concessions, such as council rate rebates, may be limited to Pensioner Concession Card holders. It’s worth checking your own state’s concessions list or our guide to Seniors Cards by state, which is a separate card again with its own discounts.
One practical point: if your income or assets fall enough that you start getting a part Age Pension, you’ll move onto the PCC automatically. As our article on the Age Pension assets test explains, some people with substantial wealth still qualify for a part pension, so check that first before settling for the CSHC.
How to apply
You can claim through your Centrelink online account in myGov, or through DVA if you’re eligible there. You’ll need details of your income, any account-based pensions (your fund can give you a Centrelink schedule) and your partner’s details. If you estimate your income when you apply, you’ll need to send in your tax notice of assessment later.
Once you have the card, tell Services Australia within 14 days if your income goes over the limit, you start a new account-based pension, or your family situation changes.
Our honest advice: if you’re 67 or over and not on the pension, assume you might qualify until the numbers prove otherwise. Too many self-funded retirees rule themselves out without checking.
FAQ
Does the Commonwealth Seniors Health Card have an assets test?
No. Only income counts. Your home, super balance, shares and investment properties don’t count as assets, although income from them, and deemed income from account-based pensions, does count towards the income test.
Do my super pension payments count as income for the card?
Not the payments themselves. Instead, Centrelink deems your account-based pension balance to earn income at the current deeming rates and adds that amount to your adjusted taxable income.
Can I have the CSHC and the Pensioner Concession Card at the same time?
No. If you get the Age Pension you’ll have the Pensioner Concession Card instead, which generally comes with more concessions.
Is the income limit indexed?
Yes. The limits are reviewed on 20 September each year in line with the Consumer Price Index. The figures in this article apply from 20 September 2026.
Can I lose the card if my investments do well?
Yes, if a big capital gain or extra income pushes your adjusted taxable income over the limit. You need to tell Services Australia within 14 days if your income goes over the limit.
This article is general information only and isn’t financial advice. Rates, thresholds and rules change regularly, so check your own situation with Services Australia (or a Financial Information Service officer) before making decisions.
