Many older Australians assume that if they don’t qualify for the Age Pension, they’re simply out of luck when it comes to government support. After all, the Age Pension – with its strict income and assets tests – can leave those who’ve saved “too much” with no pension at all.

But what if being ineligible for a pension doesn’t mean missing out on all the perks? Enter the Commonwealth Seniors Health Card (CSHC) – a little-known concession card that could save self-funded retirees thousands. In fact, it’s estimated that about 1 million Australians could be missing out on the savings this card provides – perks that can add up to $60,000 over the course of your retirement. If you’re over 67, not receiving the pension, and haven’t looked into the CSHC, it might be time to check again.


In this editorial, we’ll explore how the Age Pension and the CSHC are connected, bust some common myths, and share a few real-life examples. Grab a cuppa and let’s dive into why “too wealthy for the pension” doesn’t necessarily mean “too wealthy for a helping hand.”

Age Pension vs. Seniors Health Card: What’s the Difference?​

Think of the Age Pension and the Seniors Health Card as two different branches of support for older Aussies. The Age Pension is a fortnightly payment for eligible seniors, means-tested on both income and assets. That means Centrelink looks at how much you earn and what you own (excluding the family home) to decide if you get a full pension, part pension, or nothing at all. The rules are pretty strict – for example, a single homeowner can only have around the mid-$700,000s in assets before their pension entitlement cuts out (the exact cutoff fluctuates with indexation). Couples have higher limits (around $1 million in combined assets for homeowners). Exceed those thresholds, and you’re considered a “self-funded retiree” – no pension for you.


The Commonwealth Seniors Health Card, on the other hand, is not a cash payment but a concession card that gives you access to cheaper health care and other discounts. Crucially, it’s only available to people who are not receiving the Age Pension (or other income support). In fact, that’s a key eligibility rule: you must be of Age Pension age and not be on any pension to get a CSHC. It’s designed as a benefit for those who support themselves in retirement – often because their savings or income are above the pension cut-offs.



The biggest difference? Means testing. To get the CSHC, Centrelink only looks at your income, not your assets. There is no assets test at all. This is a game-changer. It means you could own a debt-free home, have substantial superannuation or investments, and still qualify – as long as your taxable income (plus deemed income from certain investments) is under the threshold. “Many self-funded retirees assume they won’t be eligible for the CSHC because their assets are too high. But unlike the Age Pension, the CSHC is assessed on income only – there’s no assets test,” explains Amanda Hardy Lai at Retirement Essentials.



Under current rules, the income limit for the CSHC is quite generous. As of 2025, singles can earn up to $99,025 a year and couples up to $158,440 (combined) and still be eligible. (For perspective, that’s far above the income cut-off for even a part Age Pension, which is around $60,000 for singles.) There’s a bit of fine print around what counts as “income” – for example, Centrelink applies deeming rules to your superannuation in drawdown phase (meaning they assume your investments earn a standard rate of return, regardless of what you actually withdraw). The good news is that deeming rates have been low and frozen, which often works in your favor. Thanks to these rules, even retirees with significant assets — in some cases, up to $4.5 million (single) or $6.8 million (couple), may still qualify for the CSHC depending on how their income is assessed. It sounds unbelievable, but it’s true – you can be a millionaire on paper and still get this health card if your actual income is below the limit.


In short, if you’re over 67, an Australian resident, and not on the pension, all that stands between you and a CSHC is the income test. No matter how large your nest egg is, if the annual income it produces (using Centrelink’s formulas) is under ~$99k single or $158k couple, you could snag this card.

Why the Card Matters: Health and Wealth Perks You Don’t Want to Miss​

Okay, so you qualify – but is the CSHC actually worth the hassle of applying? Absolutely. This little card packs a punch when it comes to savings, especially on health costs. Most people know it’ll get you cheaper prescription medicines under the Pharmaceutical Benefits Scheme (PBS), but that’s just the beginning.


Cheaper meds: With a CSHC, you’re entitled to pay concession prices for PBS prescriptions – currently a maximum of $7.70 per script, instead of $31.60 for general patients. If you have regular medications, this is a godsend. What’s more, once you spend a certain amount in a calendar year on PBS meds ($277.20 in 2025), you hit the PBS Safety Net and your medications become free for the rest of the year. In contrast, without any concession card you’d be paying full price until a much higher threshold. This can save you hundreds, if not thousands every year if you have high medicine costs.



Bigger Medicare refunds: Here’s where the CSHC really shines – the Medicare Safety Net. As a CSHC holder, you’re treated as a concessional patient for Medicare Safety Net purposes. That means you reach the Safety Net thresholds much sooner. In practical terms, once your out-of-pocket costs for out-of-hospital services (think specialist consults, scans, blood tests – anything covered by Medicare but not done in hospital) hit $834.50 in a year, Medicare will start rebating 80% of any further out-of-pocket costs for the rest of that year. Without a concession card, other Australians would have to rack up about $2,615 in out-of-pocket costs before getting that level of rebate. That’s a huge difference. If you have chronic health issues or see doctors regularly, the savings from reaching the Safety Net early are tremendous. It won’t guarantee every visit is bulk-billed (doctors can still set their fees), but once you cross that threshold, most of your subsequent bills shrink dramatically, courtesy of Medicare.


To put it simply, the CSHC helps cap your annual health expenses. As one explainer noted, CSHC holders get “the same medical and pharmaceutical benefits as Age Pensioners receive,” and the card can conservatively deliver around $3,000 per annum in health concessions, plus a range of state-by-state benefits. Over time, those savings really add up – potentially tens of thousands of dollars over a couple of decades of retirement.


More than just health: Beyond the doctor’s office and pharmacy, the CSHC often opens the door to other discounts. Depending on your state or territory, seniors with a CSHC can access things like electricity and gas rebates, discounted council rates, cheaper public transport, reduced vehicle registration or driver’s licence fees, and even concessional fares on interstate rail travel. These benefits aren’t uniform nationwide – each state government (and some local councils or utilities) have their own programs. But it’s always worth mentioning your CSHC when paying bills or buying tickets, because you might discover a hidden discount. From lower power bills to a few hundred off your annual rates, every bit helps when you’re stretching your retirement budget.


“So, what’s the catch?” Honestly, not much of one. You do have to apply through Services Australia (Centrelink) to get the card, which some people find daunting. And yes, there’s paperwork involved – proof of identity, providing your income details, etc. It’s no secret that dealing with Centrelink can be frustrating (more on this later). But once you have the card, it’s relatively straightforward to maintain. There’s no cost for the card itself; you just need to keep Centrelink informed if your income changes significantly. Considering the value on offer – one estimate pegged the total perks at $2,000 to $3,000 a year on average – it’s a small effort for a big return. As finance expert Effie Zahos quipped, “No, the government doesn’t give away perks easily… But don’t let the paperwork turn you off. Keep that possible $60,000 savings from the CSHC in mind, and your persistence may be rewarded!”.

Case in Point: Real-Life Examples of CSHC Eligibility​

Sometimes it helps to see how this works in real life. Let’s look at a couple of scenarios (names changed for privacy) that mirror common situations for Australian seniors:


Case Study 1: Single Self-Funded Retiree (Moderate Assets). Joan is 68 and owns her home in Melbourne. She has about $700,000 in super and savings – just above the asset limit (around $656,500) that would have qualified her for even a part Age Pension. She’s not exactly rolling in cash; in fact, she draws roughly $40,000 a year from her investments to live on, which she says is “hardly a luxury lifestyle”. Because she’s over the asset threshold, Joan gets $0 Age Pension. It feels like a dead end – she’s worked hard, saved diligently, and now gets no pension while others with just a bit less saved do. The silver lining? Joan’s $40k annual income is well under the CSHC single income limit ($99k), so she qualifies for the Commonwealth Seniors Health Card. With her CSHC, Joan only pays $7.70 for medications that used to cost her $30+ each. She also noticed that after a few specialist visits and scans, she hit the Medicare Safety Net quickly this year – now 80% of her subsequent specialist fees are rebated by Medicare. “I was bummed about not getting the pension,” Joan admits, “but this health card is brilliant – it’s saving me thousands and gives me peace of mind if my health worsens.” It’s not the same as a pension payment, but it sure softens the blow.



Case Study 2: Comfortable Couple with High Assets but Low Income. Bill and Margaret are both 67. They own a house on the Gold Coast and have combined super and investments worth about $1.2 million. That asset level is too high for an Age Pension – the cutoff for a homeowner couple is around $1,059,000 for a part pension as of 2025 (so they miss out by a few hundred thousand). However, their actual income from those assets is modest. They’ve allocated their investments in a way that produces about $50,000 of taxable income per year (some of their money is in super pension phase, which isn’t fully counted as taxable income under current rules). $50k combined is comfortably under the CSHC couple limit of $158,440. Result: both Bill and Margaret get their own CSHC cards. With the card, they enjoy the same cheap prescriptions and accelerated Medicare rebates as Joan. Additionally, living in Queensland, they’ve registered their CSHCs with the electricity provider to get a quarterly energy rebate, and they get a discount on their car registration fees each year (state government concessions). “It takes the sting out of missing the pension,” Bill says. “We don’t get those fortnightly deposits, but at least when we go to the chemist or doctor, we’re treated like pensioners in terms of discounts.” The couple estimates the card easily saves them a few hundred dollars a month between health and other concessions – money which stays in their retirement fund to last longer.


Case Study 3: High-Income Self-Funded Retiree (Surprising Eligibility). Not all CSHC holders are on a tight budget. Peter is 71, lives in Sydney, and has a taxable income of $66,000 a year from a combination of superannuation and investments. He owns a home worth around $1.3 million and has about $200,000 in other assets. Clearly, Peter’s net worth is well above any pension means test limits – he’s definitely too wealthy for the Age Pension. Yet, Peter holds a Commonwealth Seniors Health Card. How? His $66k income is under the $99k single threshold, so he meets the criteria. Peter says he almost didn’t apply because he assumed his nice house and healthy super balance disqualified him. “I figured the card was only for people worse off than me,” he recalls. “Then I learned it doesn’t even consider your assets. I applied online and a few weeks later got the card.” Now, Peter benefits from the full range of concessions. Given some health issues, he’s particularly glad to reach the Medicare Safety Net early each year, which saved him thousands on specialist bills. Peter’s example shows that even those on a comfortable income shouldn’t write themselves off – you don’t have to be struggling to snag the CSHC, just under the income limit.


These cases highlight a common theme: don’t assume you’re not eligible without checking. As Retirement Essentials urges, “It’s worth a second look” – the rules may now work in your favor, especially if you previously ruled yourself out based on misinformation. Your superannuation income might be counted in a way you didn’t expect, or thresholds may have increased since you last checked. If in doubt, it costs nothing to inquire or use an online eligibility calculator (Services Australia and various retirement sites offer them). You might be pleasantly surprised.

Misconceptions and Clarifications: Setting the Record Straight​

Despite the clear benefits, misconceptions about the Commonwealth Seniors Health Card abound. Let’s tackle a few of the big ones:

• “I don’t get the Age Pension, so I’m not entitled to any help.” This is perhaps the most common misunderstanding. It’s easy to see why – many retirees equate the Age Pension with government support, and assume no pension means you’re completely on your own. Wrong! The CSHC is specifically designed for seniors in this situation. You don’t need to be on the pension to get concessions. In fact, paradoxically, being on the pension makes you ineligible for a CSHC (since pensioners already get a different concession card). The whole point of the CSHC is to give self-funded retirees access to many of the same discounts pensioners enjoy. As noted earlier, around a million retirees may be eligible for a CSHC but haven’t claimed it yet – often because they simply don’t know it exists or that they qualify. If you’re even close to Age Pension age and not planning to claim the pension, put this on your radar.
• “If I have a lot of assets or a nice house, I won’t qualify.” False. Your assets (including your home) do not count at all for the CSHC. Only your annual income matters. This trips people up because it’s the opposite of how the Age Pension works. The government made a conscious choice here: they recognize that someone might have significant assets (say, a big super balance or valuable home) but still need help with ongoing expenses. Maybe your wealth is tied up in illiquid assets, or you’re getting low returns. The CSHC ensures you’re not penalized for that situation. As we saw, even individuals with a few million in investments could potentially qualify if their income is managed below the threshold. Don’t let the term “income” confuse you either – for CSHC, it includes things like deemed income on account-based pensions, adjusted taxable income, and some reportable super and tax-exempt pension amounts. But normal Age Pension asset rules (like your car, home contents, etc.) don’t apply here. Bottom line: you could be asset-rich but income-poor, and the CSHC is meant for exactly that scenario.

• “Self-funded retirees are all wealthy – why give them concessions?” This is more a societal misconception, often seen in media debates about “greedy boomers.” The truth is, not all self-funded retirees are rolling in cash. Being ineligible for the Age Pension doesn’t automatically mean you’re sipping champagne on a yacht. For instance, you might just be a few thousand dollars over the pension asset limit, which cuts you off entirely. One retiree noted she was just over the threshold and had to live on about $39k a year from investments – comfortable, maybe, but hardly extravagant. The CSHC recognizes that many seniors in this middle bracket could use a hand with costs like healthcare, even if they don’t qualify for income support. It’s a form of fairness: you’re not asking for a pension handout, but you can still get relief on essential expenses. And let’s not forget, most of today’s self-funded retirees paid taxes for decades that helped fund others’ pensions – there’s no shame in claiming your CSHC entitlements in return.​
• “It’s too much hassle to apply – Centrelink will make me jump through hoops.” There’s a grain of truth here: applying for anything through Centrelink can test one’s patience. The forms, the waits, the infamous phone hold music… We’ve all heard the horror stories (or lived them). A couple of commenters on this very topic admitted they “gave up” after struggling with the system. But before you toss the idea, consider the pay-off. Unlike the Age Pension, the CSHC application is a bit simpler – since it’s not assessing your assets, it requires less documentation in that area. You will need to provide proof of identity and your income details (tax returns, super statements showing your pension drawdowns, etc.). If you find the process daunting, help is available. Centrelink’s Financial Information Service can guide you, and there are services (such as Retirement Essentials or community centers) that assist seniors with claims. As one expert said, don’t let the bureaucracy scare you off – $60,000 in potential savings is worth a bit of paperwork. And remember, once it’s done, you typically won’t need to update it frequently unless your situation changes. Many have found that after the initial setup, holding onto the CSHC is relatively maintenance-free (just an annual income confirmation). So take a deep breath, maybe get a tech-savvy friend or family member to sit with you, and go through the steps. It’s a one-time effort for a long-term reward.
• “Is the CSHC the same as the State Seniors Card or Pensioner Card?” No – and it’s an important distinction. Every state and territory has a "Seniors Card" available to most people over a certain age (usually 60 or 65) which isn’t means-tested and gives discounts at participating businesses or public transport. That is not the same as the Commonwealth Seniors Health Card, which is means-tested on income and tied to federal health concessions. Also, if you’re on the Age Pension, you get a Pensioner Concession Card (PCC) – that actually offers even more concessions (including some not just for health but also often bigger discounts on utilities, rates, etc.). The CSHC is essentially the next best thing for non-pensioners – it confers almost all the health benefits a Pensioner Concession Card does, but not some of the extra perks like the Pensioner’s cheaper vehicle rego in certain states (though many states do extend similar perks to CSHC holders). It can be confusing, so the takeaway is: the CSHC is its own category of concession card. If you’re not on a pension, it’s likely the most valuable card you can get as a senior.

A Win-Win for Seniors (and the Government)​

From a broader perspective, the CSHC is a bit of a win-win policy. For retirees, it’s obviously a boon – a form of recognition and relief for those who don’t draw a pension. For the government, it’s relatively low-cost compared to paying full pensions. Encouraging seniors to be self-funded (if they can) but still offering them concessions on health and essentials strikes a balance. It alleviates some pressure on the public purse (since these folks aren’t drawing pension payments), while ensuring those who’ve saved diligently aren’t unfairly disadvantaged when it comes to affording medications and medical care.


It’s also an incentive for older Australians to report and manage their income carefully. Since the thresholds are high, it doesn’t discourage savings – you can have quite a healthy income and still get the card – but it does ensure ultra-high income earners don’t get the subsidy. The recent increase in income limits (raised in late 2022 and indexed, as noted by media at the time) expanded the card’s reach significantly. The vast majority of self-funded retirees are now covered. This was heralded as “a really big deal… the vast majority of self-funded retirees will now have a card that gives them the same medical benefits as pensioners”. In other words, if you’re a retiree not on any pension, chances are you qualify now or will qualify at some point. And given rising living costs, why wouldn’t you take advantage of every support available?

The Bottom Line​

Getting older comes with enough health worries and financial anxieties; no one wants to add “missing out on entitlements” to that list. The Commonwealth Seniors Health Card isn’t as famous as the Age Pension, but for those who have been ruled out of pension payments, it’s a must-know. Think of it as the government saying, “We see you – you’re not asking us for income support, but here’s some help to make your retirement a bit more affordable.” It’s not a handout; it’s a smart use of benefits you’ve earned through years of contributing to society.


So if you or your parents or friends are in that “too wealthy for the pension” category, take a moment to double-check CSHC eligibility. As we’ve discussed, many people wrongly assume they can’t get it when they actually can. Even if you’ve been knocked back before, rule changes (like higher income limits or frozen deeming rates) might mean you’d qualify now when you didn’t in the past. The landscape is always shifting – staying informed is key.


At the end of the day, the CSHC is about peace of mind. It’s knowing that if your health takes a turn, you won’t be as burdened by bills. It’s feeling that the country you contributed to is still giving you something back in your golden years, even if you don’t take a pension. And it’s a reminder that “self-funded” doesn’t mean “forgotten.”


Are you or someone you know missing out on this valuable card, and if so, what would you do with the extra savings and support it provides?


Read more:
Cash in on health: Big changes to Seniors Card could boost your savings and health benefits!
Retirement ‘Nightmare’: Why Millions of Australians Could Be Stuck Relying on the Age Pension
Age Pension assets test: What counts, what doesn’t, and how it affects your retirement payments