All retirees in Australia are eligible for a wide range of concessions and discounts and although these benefits don’t directly impact your DIY super fund, they could make a significant difference to your income needs in retirement.
Many of the concessions or discounts are provided on the proviso that you receive at least $1 of the government’s aged pension, which means the aged pension is worth much more than just the fortnightly income payments.
Commonwealth Seniors Health Card
For those not eligible for the aged pension, the Commonwealth Seniors Health Card (CSHC) may be available. To obtain this card, you must be an Australian resident and have adjusted taxable income (ATI) of less than $50,000 (single) or $100,000 (couple).
ATI in a financial year is calculated based on your:
- taxable income;
- total net investment losses;
- target foreign income;
- employer provided fringe benefits; and
- reportable superannuation contributions, including income that is salary sacrificed to superannuation.
The benefits available to CSHC recipients include:
- medicines listed under the Pharmaceutical Benefits Scheme (PBS) at a concessional rate;
- access to PBS prescriptions, generally without charge, for the remainder of the calendar year after reaching the PBS Safety Net;
- bulk-billed GP appointments (if offered by your GP);
- a reduction in the cost of out-of-hospital medical expenses above a concessional threshold, through the extended Medicare Safety Net;
- payment of the seniors supplement;
- Clean Energy Advance;
- Concessional travel on Great Southern Rail services (the Indian Pacific, the Ghan, the Overland); and
- additional health, household, transport, education and recreation concessions, which may be offered by state or territory and local governments and private providers at their own initiative (see below).
Pensioner Concession Card
The Pensioner Concession Card (PCC) is automatically given to aged pension recipients and it attracts the following concessions:
- medicines listed under the Pharmaceutical Benefits Scheme (PBS) at the concessional rate;
- bulk-billed GP appointments (if offered by your GP);
- a reduction in the cost of out-of-hospital medical expenses above a concessional threshold, through the extended Medicare Safety Net;
- Free hearing assessments and hearing rehabilitation, including the supply and fitting of free hearing aids (if necessary); and
- Maintenance of hearing aids and a regular supply of batteries, for an annual fee.
In addition to those national concessions, most states and territories provide these additional benefits for card holders:
[1]All states and territories offer a seniors card that provides a range of discounts and benefits to those aged over 60 who are working less than a set number of hours per week. The number of hours differs in each state and territory. For example, in Victoria the card is available for those working less than 35 hours per week; in NSW its 20 hours per week and in WA its 25 hours per week in the last 12 months.
As can be seen, there’s a large number of benefits available to retirees.
I think it’s worthwhile trying to structure your affairs in a manner that allows you to get some Centrelink or Department of Veterans’ Affairs pension in order to get the Pensioner Concession Card and its associated discounts and benefits. These little savings can make a big difference to your living expenses.
Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Anyone should consider the appropriateness of the information in regards to their circumstances.
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