One million retirees could be missing out on huge savings—are you one of them?
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Many retirees may be missing out on valuable financial support without even realising it.
Changes to government policies have opened up new opportunities for savings, yet a surprising number of eligible Australians remain unaware.
A little-known benefit could mean thousands of dollars in extra savings each year—but are you overlooking it?
More than a million Australians had been missing out on thousands of dollars in savings through Centrelink’s Commonwealth Seniors Health Card (CSHC) simply because they didn’t realise they were eligible.
The card allowed retirees to access discounted healthcare and provided state-based concessions on essential services such as electricity, council rates, public transport, and other household bills.
It was available to Australians aged 67 and over who were not receiving Centrelink payments like the Age Pension.
While there was no asset test, eligibility depended on an income test that had been significantly revised in recent years.
Retirement Essentials estimated that a single cardholder could save up to $3,000 annually, potentially accumulating $60,000 in benefits over two decades.
SuperEd’s chief customer officer, James Coyle, believed as many as 1.5 million self-funded retirees had been eligible but were not claiming the CSHC, while approximately 500,000 people already had the card.
‘Some of these will have high incomes from rental properties, shares, etc so may not be eligible but a conservative calculation would be in the order of one million self-funded retirees that could be eligible that are not receiving it,’ Coyle shared.
Many retirees had remained unaware of their eligibility due to changes in the income threshold, which had increased significantly over the past few years.
The government had passed legislation to raise these limits, with annual reviews tied to the Consumer Price Index.
From 20 September 2024, singles earning up to $99,025 and couples with a combined income of $158,440 could qualify for the card.
Services Australia assessed eligibility by considering adjusted taxable income along with deemed earnings from account-based pensions rather than actual income.
This deemed income was typically lower, making it easier for retirees to qualify.
Coyle explained that a retiree with $1.9 million in an account-based pension would be deemed to earn about $41,500—well below the new $99,025 threshold.
Those who qualified could check the eligibility criteria and submit an application through Centrelink’s website.
Age Pension recipients did not receive the CSHC but were instead issued a Pensioner Concession Card.
CSHC holders could access prescriptions under the Pharmaceutical Benefits Scheme for just $7.70 per script, with a yearly cap of $277.20, after which medications became free.
Bulk-billed doctor visits were also available, though participation depended on individual medical providers.
Additional state-based discounts are applied to healthcare services, ambulance cover, dental and optical care, utility bills, property and water rates, and public transport.
According to Challenger, Western Australian retirees could receive up to $32,440 in extra state-based benefits over their lifetime.
South Australians could gain $11,540, while New South Wales residents could receive an additional $5,000.
Those in Victoria, Queensland, and Tasmania, however, did not receive extra state-based concessions.
More benefits and updates—see what’s new with Centrelink.
With thousands of retirees potentially missing out on valuable savings, do you think more should be done to raise awareness about the Commonwealth Seniors Health Card?
Let us know your thoughts in the comments.
Changes to government policies have opened up new opportunities for savings, yet a surprising number of eligible Australians remain unaware.
A little-known benefit could mean thousands of dollars in extra savings each year—but are you overlooking it?
More than a million Australians had been missing out on thousands of dollars in savings through Centrelink’s Commonwealth Seniors Health Card (CSHC) simply because they didn’t realise they were eligible.
The card allowed retirees to access discounted healthcare and provided state-based concessions on essential services such as electricity, council rates, public transport, and other household bills.
It was available to Australians aged 67 and over who were not receiving Centrelink payments like the Age Pension.
While there was no asset test, eligibility depended on an income test that had been significantly revised in recent years.
Retirement Essentials estimated that a single cardholder could save up to $3,000 annually, potentially accumulating $60,000 in benefits over two decades.
SuperEd’s chief customer officer, James Coyle, believed as many as 1.5 million self-funded retirees had been eligible but were not claiming the CSHC, while approximately 500,000 people already had the card.
‘Some of these will have high incomes from rental properties, shares, etc so may not be eligible but a conservative calculation would be in the order of one million self-funded retirees that could be eligible that are not receiving it,’ Coyle shared.
Many retirees had remained unaware of their eligibility due to changes in the income threshold, which had increased significantly over the past few years.
The government had passed legislation to raise these limits, with annual reviews tied to the Consumer Price Index.
From 20 September 2024, singles earning up to $99,025 and couples with a combined income of $158,440 could qualify for the card.
Services Australia assessed eligibility by considering adjusted taxable income along with deemed earnings from account-based pensions rather than actual income.
This deemed income was typically lower, making it easier for retirees to qualify.
Coyle explained that a retiree with $1.9 million in an account-based pension would be deemed to earn about $41,500—well below the new $99,025 threshold.
Those who qualified could check the eligibility criteria and submit an application through Centrelink’s website.
Age Pension recipients did not receive the CSHC but were instead issued a Pensioner Concession Card.
CSHC holders could access prescriptions under the Pharmaceutical Benefits Scheme for just $7.70 per script, with a yearly cap of $277.20, after which medications became free.
Bulk-billed doctor visits were also available, though participation depended on individual medical providers.
Additional state-based discounts are applied to healthcare services, ambulance cover, dental and optical care, utility bills, property and water rates, and public transport.
According to Challenger, Western Australian retirees could receive up to $32,440 in extra state-based benefits over their lifetime.
South Australians could gain $11,540, while New South Wales residents could receive an additional $5,000.
Those in Victoria, Queensland, and Tasmania, however, did not receive extra state-based concessions.
More benefits and updates—see what’s new with Centrelink.
- Millions of Aussies affected: How latest Centrelink changes could impact your payments
- 'Get a job': Centrelink beneficiary garners mixed reactions from fellow Aussies
- Customers warned about 'life-changing' Centrelink payments circulating online
- Major Centrelink payment changes begin this week: What you need to know and how it affects you
With thousands of retirees potentially missing out on valuable savings, do you think more should be done to raise awareness about the Commonwealth Seniors Health Card?
Let us know your thoughts in the comments.
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