Support for retirees through Senior Health Care Card changes

Legislation to increase the income test thresholds for the Commonwealth Seniors Health Card has now been passed by Parliament. This legislation is set to help thousands of seniors access affordable medications and substantial discounts on State Government services. 

 

What’s new 

Increased cut-offs. 

The change increases the cut-off limits to access the card to $90,000 a year for singles and a combined $144,000 for couples. Those figures will be indexed each year, commencing in September 2023. The Association of Independent Retirees (AIR) welcomed the change, saying the ability to access the card will support many seniors, particularly those feeling weighed down by increasing living costs. 


"Income for self-funded retirees doesn't necessarily rise in line with inflation like those on a full or part­pension. The savings on prescription drugs alone will save some of them hundreds of dollars a year," AIR’s National Deputy President Margaret Walsh said. 

 

Affordable medications & State Government services discounts. 

For seniors with a CSHC or Pensioner Concession Card, PBS­listed drugs which would normally cost $42.50 per prescription are capped at $6.80 per script. There is· also an annual safety net of $244.80 a year — a massive saving. Additionally, if the limit is reached, prescriptions are free for the rest of the calendar year. 


When combined with the State's WA Seniors Card, WA residents will enjoy most of the benefits received by age pensioners. That includes lofty discounts on local government charges, water supply charges and other State Government services. According to an estimation from the AIR, in some cases, the combined discounts could be worth up to $7,000 a year. 

 

Don’t miss out! 

The card is not automatically issued… 

Independent Financial Planner, Emily van Kampen, said that retirees could miss out simply because they won't be aware of their entitlement to get the card in the first place. This is even more true for wealthy seniors. “There's just an assumption by wealthy retirees that they're not entitled to anything from the Government when, in fact, they might be," Ms van Kampen said. "Confusion over what's regarded as assessable income is a big part of it because many think the assessment is based on cashflow when it isn't." 

 

Calculating eligibility. 

Centrelink uses a combination of taxable income and deemed income on certain investments to calculate income eligibility for the card. What most people don’t realise is that any money taken out of a taxed super scheme — whether as a regular payment or a lump-sum withdrawal — does not count towards the annual limit. Gross employment income, foreign income, net rental receipts, assessable capital gains and grossed-up share dividends are all part of the annual figure. 


Centrelink's deeming system is applied to some money in super, but only to the funds held in an account-based pension. If seniors have money retained in superannuation accumulation accounts, this will be ignored. 

 

Figures to remember. 

For singles, the first $56,400 of the money in ABPs is deemed to be earning 0.25% a year and the balance at 2.25% a year. For couples, the combined lower amount of $93,600 attracts the 0.25% rate with the remainder at 2.25%. 


A single who has the maximum amount of $1. 7 million in an ABP would have deemed income on the amount of $37,122. That leaves $52,878 to be earned from other investments and employment income before losing access to the CSHC. A couple with a maximum amount of $3.4m in ABPs would have deemed income of $74,628 a year, leaving them with a combined $69,372 a year. 

 

Applying for your Senior Health Care Card. 

The easiest and fastest way to apply for your Senior Health Care Card is online through Services Australia. You can also download an 18-page claim form (from the same website), which you can print, fill in, and post. At this stage, online applications require each individual to claim, but the paper version includes a combined claim form for couples. 



Each individual also needs a myGov account linked to a personal Centrelink account. 

 

Don’t have a myGov account? 

Setting one up might seem complicated, but it’s actually quite easy (if not a little tedious). If following these steps feels overwhelming, we suggest enlisting the help of a friend or family member. 

  1. If your myGov account is not already set up, go to my.gov.au and follow the steps to open an account. 
  2. Once established, myGov will ask you to link any relevant services — this is where you can add Centrelink. 
  3. You have two options to link Centrelink to your myGov account. The easiest way is to obtain a linking code by calling 13 23 07 and selecting option "1''. Alternatively, you can visit a physical Centrelink office with identity documents such as your passport, driver's license or Medicare Card. 
  4. Using a smartphone, download the myGovlD app and establish your identity using documents including things passport, driver's license or Medicare Card. 
  5. Once everything is linked, click, “make a claim" and then "get started" on the concession cards menu. Depending on how you answer the questions, you may have to upload scanned copies of documents to support your claim. 
  6. If your claim is successful, your card will be quickly available in your phone's digital wallet via the Centrelink Express Plus App. A hard copy version will be posted to you as well. 

 

Clear as mud? 

Let’s talk about it in more detail. If you’d like to get the full scoop on Senior Health Care Card entitlements for yourself or on behalf of a parent (and how this affects tax), contact us. 


Need help with your accounting?

Find Out What We Do

The 5% homebuyer deposit for first home buyers.

December 15, 2025
The Australian Government’s expanded 5% Deposit Scheme, which commenced on October 1, offers a fast-tracked path to home ownership for many aspiring buyers. By drastically reducing the deposit required and eliminating Lenders Mortgage Insurance (LMI), this program aims to unlock the door to your very own home sooner than ever thought possible. However, like any major economic policy, it has significant implications that buyers and taxpayers must consider. Here is a breakdown of how the scheme works, who qualifies, and what the potential impact could be on the property market. What is the 5% Deposit Scheme and how does it work? The scheme is designed to make home ownership more achievable, particularly for those struggling to save a 20% deposit. Low Deposit: The home buyer secures a loan with a minimum deposit of 5% (for First Home Buyers) or 2% (for single parents/legal guardians). Government Guarantee: Instead of the buyer paying LMI (which protects the lender), the Australian Government provides a guarantee to a Participating Lender. This guarantee allows the lender to provide a home loan covering up to 95% or 98% of the home's value without the usual LMI fee. No LMI: The buyer avoids paying Lenders Mortgage Insurance, significantly reducing upfront costs.  Key features of the expanded program include no income caps, as well as unlimited spots and no waiting list. The Scheme also makes a wider choice of home types available (houses, apartments, house/land packages, vacant land with a building contract, new or existing homes). It’s not just for first home buyers!

6 personal budgeting tips for Christmas.

December 15, 2025
Christmas can be the most wonderful time of the year—it can also be one of the most expensive. The key to enjoying the festive season and reducing the risk of financial stress is careful planning. As your financial partners at Ascent Accountants, we want you to focus on what truly matters—time with friends, family, and peace of mind. Six essential budgeting tips to help you take control of your Christmas spending. 1. Make a detailed budget list. The sooner you start, the more control you have. Begin by listing every expense you anticipate, including gifts, food, clothes, travel, and entertainment. Once you have your total, check it against your available funds. If the total feels too high, look at where you can cut back or spread the cost. Being realistic from the beginning prevents surprises later. 2. Prioritise what truly matters (and pay your priority debts!). When money is tight, focus your funds on the essentials and the things that genuinely bring the most joy. Order your list by priority (e.g., gifts for children first, then shared family meals, then travel). It’s okay—and essential—to say 'no' to extras that don’t fit your budget. Always consider your priority payments and debts before any other Christmas spending. Priority debts, like rent, electricity, or car insurance, must always come first as they significantly impact your day-to-day life if left unpaid. 3. Be cautious with credit and 'Buy Now, Pay Later' arrangements. It's tempting to use a credit card or a Buy Now, Pay Later option, especially when promotions promise delayed payments. However, small instalments add up quickly, and missing a payment can result in fees and/or negatively impact your credit record. If you do use credit, only borrow what you can comfortably afford to repay, and make a solid plan to pay it off as soon as possible in the new year. 4. Compare prices & shop smart. Always take time to research before you buy. Comparing online and in-store prices can result in significant savings. Be wary of high-pressure sales events like Black Friday, which often encourage impulse spending. Before purchasing, ask yourself three questions: Do I really need this? Is this on my original budget list, or is it extra? Is this truly a bargain if I don't actually need it? 5. Suggest a 'Secret Santa'. If your family or friend group has traditionally bought gifts for everyone, suggest switching to a Secret Santa arrangement. Setting a sensible spending limit or pooling funds for one thoughtful gift makes things easier and less expensive for everyone. Often, homemade gifts or vouchers for experiences are more meaningful and last longer in the memory than expensive presents. 6. Plan ahead for next year. The best way to guarantee a calm, affordable Christmas next year is to start preparing now. After this year's holidays, take note of exactly what you spent and where the money went. Set a goal for next year and start a small savings fund. Even setting aside $5 or $10 a week can make a monumental difference in managing next Christmas without stress. Need to tidy up your finances after the holidays? If the Christmas period leaves you needing advice on debt consolidation, setting up a savings plan, or just better budgeting habits for the new year, contact the team at Ascent Accountants. We can help you build the confidence to hit your financial goals!

FBT on Work Christmas Parties & Gifts

December 15, 2025
As the end of the year approaches, businesses are gearing up for the festive season, which means planning the annual Christmas party and showing appreciation with gifts. While the cheer is high, so too are the complexities of Fringe Benefits Tax (FBT). Getting the FBT treatment wrong can turn a simple celebration into an unexpected tax bill. As your trusted advisors at Ascent Accountants, here is a breakdown of the key tax rules, with a focus on the crucial $300 per person limit, to ensure your end-of-year generosity is tax-effective. The critical $300 minor benefit threshold. The Minor Benefits Exemption is your best friend for managing FBT. A benefit is generally exempt from FBT if its total notional taxable value is less than $300 (GST inclusive) per person, and it is provided infrequently and irregularly. Christmas parties (entertainment) The location and cost of your party are the key factors for FBT.

Burnout & mental health in a post-pandemic workplace.

November 12, 2025
Workplace stress affects mental health. Learn how employees and employers can prevent burnout and boost wellbeing and productivity.

Dealing with divorce; your property guide.

November 12, 2025
Divorce or separation is complex. Learn how to handle shared property, including the family home, investments, and SMSF assets.

Does your business need public liability insurance?

November 12, 2025
If your business interacts with the public in any way (from welcoming customers into your shop to visiting client sites) then public liability insurance isn’t just “nice to have.” It’s essential protection. Whether you’re a sole trader, a café owner, or running a construction company, public liability insurance helps safeguard your business against unexpected (and often costly) accidents. What Is public liability insurance? Public liability insurance covers your business if a member of the public suffers injury, death, or property damage as a result of your business activities. In simple terms, it’s there to protect you financially if something goes wrong—such as a customer slipping in your store, a tradie damaging a client’s property, or a product you sell causing harm. Without it, you could be personally liable for significant compensation and legal costs. What does it cover? A typical policy covers: Injury or death to a third party caused by your business operations. Damage to property belonging to someone else. Compensation and legal costs you’re ordered to pay following a covered claim. For example, if a customer trips over a cable in your office or a carpenter cracks a client’s TV while working onsite, public liability insurance steps in to cover the costs. What isn’t covered?  While every policy is different, public liability insurance usually won’t cover: Damage involving vehicles. Defective work. Breach of professional duty or negligence in advice (that’s covered by professional indemnity insurance). Defamation or advertising liability. Understanding these exclusions helps you choose the right combination of cover for your business. Who needs public liability insurance? If your business has any level of public interaction, you likely need it. Common examples include: Customer or supplier visits: If anyone comes to your premises or you work on theirs. Public events: Markets, expos, and pop-ups. Retail, trade, and construction: High public contact increases your risk. Leased premises: Many shopping centres and landlords require proof of cover. Contractor or license requirements: Many trade licenses (like electricians and plumbers) require it to operate. Even if it’s not legally required, most Australian businesses choose to have public liability insurance for peace of mind. How much cover do you need? The level of cover depends on your industry, business size, and risk exposure. Most businesses opt for between $5 million and $20 million. It’s worth reviewing your policy regularly, especially if your operations expand or you start working in new environments. Is it compulsory in Australia? Public liability insurance isn’t legally mandatory for all businesses, but some industries and licences make it a condition of operation. For example, in Queensland, electrical contractors must hold a minimum of $5 million in public and product liability cover. Similarly, councils or venue owners may require proof of insurance before approving an event or leasing a space. Don’t risk a law suit. Being sued for negligence can be financially devastating. Even a minor incident can mean you lose hundreds of thousands—not to mention the impact on your brand and business reputation. Public liability insurance ensures your business can keep operating, even when the unexpected happens. If you’re unsure whether your current cover is adequate, our team at Ascent Accountants can help you review your business risks and recommend the right level of protection for your situation. Contact us today to learn more.
More Posts