Commonwealth Senior Health Card for Self Funded Retirees

Tony Bev · Guru

Commonwealth Senior Health Card for Self Funded Retirees

gooba53 · Guru

I must admit I find this so confusing. So that taxable income of $84,472 per couple, is that what you can receive from your self funded super pension per year? Is there an asset test?

rockylizard · Guru

Gday...

Here y'are Gooba - the info -

https://www.humanservices.gov.au/customer/services/centrelink/commonwealth-seniors-health-card

Cheers - John

gooba53 · Guru

rockylizard wrote:
Gday...
Here y'are Gooba - the info -
https://www.humanservices.gov.au/customer/services/centrelink/commonwealth-seniors-health-card
Cheers - John

Thanks John

Tony Bev · Guru

gooba53 wrote:
I must admit I find this so confusing. So that taxable income of $84,472 per couple, is that what you can receive from your self funded super pension per year? Is there an asset test?

There is NO asset test as far as I know, and they never asked me for my asset particulars

As far as the Self Managed Superannuation Fund goes, the rule is that you MUST pay yourself the Minimum amount of 5% of what is in that fund, and this percentage goes up when you are 74 years of age

But...

Centerlink already have my financial details, probably rounded up to one tenth of one cent, as they already have my wife on their book as an old age pensioner, and give her the grant total of just over $20 per fortnight

But... there again, I do not have any excess assets, I own outright with my wife, one home, one motorhome, one old caravan, the wifes car, and one cat

Hope that this info is helpful to you

LLD · Senior Member

Taxable income is just that. Usually part of a self funded super fund income (or any fund for that matter) is your capital being returned and is not taxable as you paid tax on that when you put it in your fund. So if you get $84K from your super, not all of that is taxed, as some of that money is your capital. The superfund will supply that breakdown. At least that is how it used work when I investigated it about 12 years ago.

Assets include cars, vans, boats, motorbikes and house furniture all assessed at fire sale amounts. Not what insured for but what you'd realistically get if you had to sell today. I used Redbook for cars & bikes less a percentage. Van is a best guess. No boat.

The normal Low Income Healthcare Card does not take assets into account. I'd been on that card for 10 years and suddenly when I switched to the Aged Pension last month all of a sudden I had 2 cars, a van, some motorbikes and a token amount of furniture on my records.

gooba53 · Guru

Retired in July, get pension from our superfund, not self managed. Would be nice to get that healthcare card. Might just call into centerlink one day and suss it.

Explorer · Guru

gooba53 wrote:
Retired in July, get pension from our superfund, not self managed. Would be nice to get that healthcare card. Might just call into centerlink one day and suss it.

The Seniors Health Care Card only gives You cheaper prescripton medicine. A presciption costs me $6.30 (a saving not to be sneezed at) but that is the only benefit attached to the card. New compliance rules to obtain the card applies from Feb.2017.

As far as I can tell wether the fund is self managed or not but as long as its a registered super fund the "Account based" pension/payment is classified as non taxable. Your financial advisor should be giving You all this sort of information.

Mike.

LLD · Senior Member

Not sure about Seniors Healthcare Card, but the Low Income Healthcare Card gives you all sorts of discounts: Car registration, Electricity, Water, entry to most events that have cheap prices for Aged Pension Cards. Well worth the effort to apply. Nothing to lose if you don't qualify. The healthcare cards only look at income, not assets.

Aus-Kiwi · Guru

So many cards it gets confusing . Plus at times the same card gets called different names . Old age card and pension or medical card are two diffetent cards . Just have to be careful which card you your talking about .,

aussie_paul · Guru

IMHO we DO need that Australia card.

Aussie Paul. smile

Roving-Dutchy · Guru

There are two health care cards one is called the Seniors Health Care card and the other the Low Income Health card in many instances the Low Income card gives the same benefits from State Governments as the Age Pension Card.
In 2017 those pensioners who lose there pension because of changes as to how the pension is assessed, will become eligible for a Low Income Card.
Cheers
David

Tony Bev · Guru

Explorer wrote:
gooba53 wrote:
Retired in July, get pension from our superfund, not self managed. Would be nice to get that healthcare card. Might just call into centerlink one day and suss it.
The Seniors Health Care Card only gives You cheaper prescripton medicine. A presciption costs me $6.30 (a saving not to be sneezed at) but that is the only benefit attached to the card. New compliance rules to obtain the card applies from Feb.2017.
As far as I can tell wether the fund is self managed or not but as long as its a registered super fund the "Account based" pension/payment is classified as non taxable. Your financial advisor should be giving You all this sort of information.
Mike.

You are correct Explorer in respect that gooba53, will have to obtain a form from his Superannuation Fund Manager, which will show what his capital is, and what he actually receives, in order for Centerlink to process his claim

My problem was that as a Self Managed Superannuation Fund, I have no financial advisor, only the annual Auditor, therefore I did not have access to the forms which Centerlink wanted

Reading the link which rockylizard put up, below is a snip of what it says, which is a bit more than just scripts at the chemist

Hope this info is useful to someone

Senior Health Card.GIF

rockylizard · Guru

Gday...

Thanks Tony Bev ... I have found readers rarely seem to fully read the information contained within the site provided by a link.

I guess it takes too much time to get all the information from the one source. cry

Cheers - John

Tony Bev · Guru

If I ever reach one quarter of the knowledge you have John, I shall pat myself on the back

Your links to information are very informative, for any who wish to read them

It is therefore I, who should be thanking you

LLD · Senior Member

aussie_paul wrote:
IMHO we DO need that Australia card.
Aussie Paul.

Agree.

Lancelot Link · Senior Member

I am a CSS 54/11 retiree aged 58 and I have been told I will never see an age pension or a health card. I am a bit disappointed that I did the right thing and am now alienated, particularly when I live in a Centrelink town. It is depressing to go to the bakery and see the same young people enjoying the welfare life at the cafes drinking coffee with the prams and babes in arm only to see the same people lining up outside the Centrelink office an hour later! Guess it is a sign of the times and our Governments regard to those who have done the right thing! I can't wait to wrap up the house and get out of Dodge!

LLD · Senior Member

Lancelot Link wrote:
I am a CSS 54/11 retiree aged 58 and I have been told I will never see an age pension or a health card. I am a bit disappointed that I did the right thing and am now alienated, particularly when I live in a Centrelink town. It is depressing to go to the bakery and see the same young people enjoying the welfare life at the cafes drinking coffee with the prams and babes in arm only to see the same people lining up outside the Centrelink office an hour later! Guess it is a sign of the times and our Governments regard to those who have done the right thing! I can't wait to wrap up the house and get out of Dodge!

You've got 7+ years to spend your kitty. Do what a lot of others have done and spend as much as you can so that when you get to pension age you qualify. Lots of trips, cruises help. Set your house up such that you have minimal expenses once on the pension. Two of my uncles had a big spend up just before they qualified for aged pension. One totally renovated his house. The other bought a new house and furnished it from scratch and sold his old house fully furnished. Your house is not an asset. Caravans and cars are.

You fall into the category the Government hate. Retired then cash in your super at 60, spend all that hard earned money then front up at Centrelink when you turn pension age (actually 90 days prior to that). However you will be stimulating the economy in the meantime. Enjoy.

rockylizard · Guru

LLD wrote:

Your house is not an asset. Caravans and cars are. HUH ? ! ?

Gday...

A caravan or car is a depreciating asset - ie from the moment it is purchased it continues to devalue. hmm

A house is an appreciating asset - ie it gains in value over time. smile

House Prices 02.jpg

Cheers - John

Hewy54 · Senior Member

I think that LLD was referring to the fact that as far as Centrelink is concerned, your place of residence is not counted as an asset but cars and caravans are.

rockylizard · Guru

Hewy54 wrote:
I think that LLD was referring to the fact that as far as Centrelink is concerned, your place of residence is not counted as an asset but cars and caravans are.

Gday...

Sorry Hewy ... You are correct in how the FAMILY HOME is assessed by Centrelink.

I guess I read it as it was written rather than by reading his mind. cry

Cheers - John

Lancelot Link · Senior Member

LLD wrote:
Lancelot Link wrote:
I am a CSS 54/11 retiree aged 58 and I have been told I will never see an age pension or a health card. I am a bit disappointed that I did the right thing and am now alienated, particularly when I live in a Centrelink town. It is depressing to go to the bakery and see the same young people enjoying the welfare life at the cafes drinking coffee with the prams and babes in arm only to see the same people lining up outside the Centrelink office an hour later! Guess it is a sign of the times and our Governments regard to those who have done the right thing! I can't wait to wrap up the house and get out of Dodge!
You've got 7+ years to spend your kitty. Do what a lot of others have done and spend as much as you can so that when you get to pension age you qualify. Lots of trips, cruises help. Set your house up such that you have minimal expenses once on the pension. Two of my uncles had a big spend up just before they qualified for aged pension. One totally renovated his house. The other bought a new house and furnished it from scratch and sold his old house fully furnished. Your house is not an asset. Caravans and cars are.
You fall into the category the Government hate. Retired then cash in your super at 60, spend all that hard earned money then front up at Centrelink when you turn pension age (actually 90 days prior to that). However you will be stimulating the economy in the meantime. Enjoy.

I hope I've done this right. According to the information I have, my pension is based on 2 1/2 times my input as a CPI pension for life, and an allocated pension that has been calculated well beyond age retirement age. So, unless things change, I cannot spend it as it is not a lump sum, so I guess the Government knew what they were setting up in trying to get rid of older people and bring in young people when there was not the aging population there is now. I just happen to fall into those inn between years and kept saying I am not going to the PSS because I don't believe in fixing something that is not broken!