The Commonwealth Seniors Health Card (CSHC) is the safety net for self-funded retirees — people over Age Pension age who don't qualify for a payment because their income or assets are too high, but who still want concession-card benefits. The CSHC's income cut-off is $101,105/year single and $161,768/year combined for a couple, with NO assets test. That makes it relevant for retirees with substantial super balances but modest annual cash income. Verified against Services Australia — CSHC and income test for the CSHC as at 24 June 2026.
Thresholds index 20 September annually against CPI. Always verify before relying on a specific figure for a real claim.
Why it matters — the actual dollar savings
The CSHC unlocks a concession-card benefits stack that's easily worth $2,000–$4,000/year for an average retiree taking regular medication and seeing a GP a few times a year:
- PBS scripts: ~$7.70 each (concessional rate) instead of ~$32.50 (general rate). Save $24.80 per script.
- PBS Safety Net concession threshold: roughly $290/yr instead of $1,694/yr — once you cross it, scripts drop to about $0 to $7.70.
- Medicare Safety Net concession threshold: roughly $830/yr instead of $2,544/yr — once you cross it, Medicare rebates rise to 80%+ of the schedule fee.
- Bulk-billing incentives for GPs — many bulk-bill concession-card holders even when they don't bulk-bill everyone else.
- State energy rebates — typically $250–$400/yr depending on your state.
- State vehicle rego discount — typically 25–50% off the registration fee.
- State public transport concessions — half-price or free travel depending on state.
For a retiree on three regular medications + 6 GP visits a year, the PBS + Medicare side alone is usually $1,000–$2,000/year of saving. State concessions add another $400–$1,500.
Eligibility — the four gate questions
You qualify if all of these apply:
- Age Pension age — 67 if born on or after 1 January 1957.
- Australian resident — you must be in Australia when you claim and remain a resident.
- Not getting an income-support payment — if you're on the Age Pension, Disability Support Pension, or similar, you already have the Pensioner Concession Card and don't need this.
- Pass the income test — annual income below the cut-off.
The income test — annual, not fortnightly
Unlike the Age Pension's fortnightly income test, the CSHC test uses an ANNUAL combined income figure.
Cut-offs (effective 20 September 2025, next indexation 20 September 2026):
| Situation | Annual income cut-off |
|---|---|
| Single | $101,105 |
| Couple combined | $161,768 |
| Couple separated by illness (combined) | $202,210 |
| Each dependent child adds | $639.60 |
What counts as income (combined for couples):
- Adjusted Taxable Income (ATI) — taxable income, reportable super contributions, reportable fringe benefits, net rental losses, net investment losses, foreign income.
- Deemed income on account-based pensions started on/after 1 January 2015 — at the standard Age Pension deeming rates (1.25%/yr to $64,200 single / $106,200 couple, 3.25%/yr above).
- NOT counted: the actual income paid from your account-based pension (only the deemed amount counts; this is why account-based pensions are tax-efficient AND CSHC-efficient).
Account-based pensions started BEFORE 1 January 2015 keep their original "actuarial deductible" treatment, which usually produces a lower assessable figure than deeming — keep that grandfathering by not commuting and re-starting.
Worked example — Brian and Susan
Brian and Susan are both 70, partnered, retired. Their assessable income for CSHC:
- Brian's super income stream (started 2017): account balance $480,000.
- Deemed: $106,200 × 1.25% + ($480,000 − $106,200) × 3.25% = $1,327.50 + $12,148.50 = $13,476/yr
- (Note: the couple deeming threshold is split across both members' account-based pensions in practice; consult Services Australia for the exact treatment in shared cases.)
- Susan's super income stream (started 2013, grandfathered): assessable income via the actuarial formula ≈ $8,200/yr.
- Combined dividends + interest (already counted via deeming if held outside super; example: nil outside-super financial assets): $0.
- Net rental from one investment property: $14,000/yr.
- Brian's part-time consulting income (10 hours/wk): $32,000/yr.
Combined assessable income = $13,476 + $8,200 + $14,000 + $32,000 = $67,676/yr.
That's well below the $161,768 couple cut-off → Brian and Susan qualify for the CSHC.
They wouldn't qualify for the Age Pension (the rental + consulting income would fail the Age Pension's fortnightly income test, and their financial assets sit above the assets-test threshold). But the CSHC is still theirs — and the concession-card benefits flow without any further taper.
Where it gets tricky
Account-based pension grandfathering. If your account-based pension started before 1 January 2015 and you commute it (close it and re-open a new one), you LOSE the grandfathering and switch to deeming. This often pushes self-funded retirees over the CSHC cut-off. Don't commute without specialist advice.
Investment property in a self-managed super fund. SMSF income is treated under different rules than the standard super income stream — talk to your accountant before assuming a specific figure.
Foreign pensions (UK State Pension, NZ Super, US Social Security). These count as actual income, not deemed — and they count for the WHOLE year, not just the months received. Many migrants get caught here.
Where to claim + next steps
- Apply through my.gov.au linked to Centrelink. You need a Tax File Number and proof of identity.
- Services Australia review your eligibility annually against your tax return. You don't need to re-apply each year; the card auto-renews as long as you stay eligible.
- If your assessable income changes significantly mid-year (e.g. you sell an investment property and the deemed income jumps), notify Services Australia within 14 days.
- The Financial Information Service is a free Services Australia service that can model your CSHC position before you claim — particularly useful if you're close to the cut-off or have a grandfathered account-based pension.
See also: our Age Pension guide, Work Bonus guide, and Downsizer contribution guide.