An almost doubling of the income threshold for Commonwealth Seniors Health Card (CSHC) eligibility will open its prized benefits to many self-funded retirees for the first time from 1 July 2022.
The income threshold for receiving the card will increase from just under $58,000 a year to $90,000 a year for single self-funded retirees, and from just over $92,000 to $144,000 for couples.
What makes the CSHC unique is that it is NOT assets tested, only an income test is used. The test takes into account your adjusted taxable income (ATI) plus the deemed income from any part of your superannuation from which you are drawing a pension and other liquid investments or cash.
There are many material benefits that come with the CSHC and it is a welcome change for self-funded retirees who continue to face cost of living pressures.
This change could have a truly worthwhile impact, so it is worth discussing with your advisor whether you are one of the additional 50,000 Australians who are estimated to be eligible for the CSHC.
Your advisor may need to assist you in completing the Income Statement and you can start the process online today. If you have never dealt with Centrelink before you will need to attend an office in person to produce original ID which can be done after you have commenced the application process online here – https://www.dva.gov.au/about-us/dva-forms/application-commonwealth-seniors-health-card-cshc.
Kathy Havers is an Executive Financial Advisor at Viridian Advisory.
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