In Australia, government initiatives offer various health care cards to assist individuals. Two prominent options are the Low Income Health Care Card and the Commonwealth Seniors Health Care Card. Both cards provide crucial benefits, but they operate under different income tests. Here we’ll delve into the distinctions between the income tests for these cards, helping you understand the eligibility criteria and how they can aid in accessing affordable healthcare.
Low Income Health Care Card
As its name suggests, the Low Income Health Care Card is aimed at providing financial assistance to individuals and families with low incomes. The card offers benefits such as reduced prescription medication costs and other concessions such as electricity and gas bills, property and water rates, public transport fare and motor vehicle registration, however, this will vary based upon each state or Territory. To qualify for this card, individuals and families need to meet specific income thresholds.
Commonwealth Seniors Health Care Card
The Commonwealth Seniors Health Care Card is designed for seniors who have reached Age Pension age but are not eligible for age pension or other payments from Centrelink or the DVA due to their excessive income and/or assets. This card provides benefits such as pharmaceutical discounts and bulk-billed doctor visits. The eligibility criteria are linked to income, but the thresholds are higher than those of the Low Income Health Care Card or Age pension.
Differences in Income Tests
While both cards consider income, the income tests they apply have differences in terms of criteria and thresholds:
Low Income Health Care Card Income Test
The income test for the Low Income Health Care Card assesses the gross income earned by an individual or family. This income includes sources such as:
- Employment income, such as wages, salary and self-employment income
- Employer provided fringe benefits
- Net Rental income (Rent – less associated expenses)
- Reportable super contributions, salary sacrifice
- Centrelink pensions, benefits and some supplementary payments
- Paid Parental Leave and Department of Veterans Affairs payments.
- Deemed income from financial investments, such as bank accounts, managed investments, shares, account-based income streams
- Income from income stream products, such as super pensions and defined benefit income streams
- Foreign income Private trusts and companies
- Compensation payments, including periodical and lump sum lump sum payments, such as redundancy, leave, or termination payments.
The test compares this income to the specific income thresholds set by the government. The following are the current income levels effective until 19 March 2024:
| Status | Weekly income | Income in an 8 week period |
| Single, no children | $757 | $6,056 |
| Couple combined, no children | $1,295 | $10,360 |
| Single, one dependent child | $1,295 | $10,360 |
| Couple combined, one child | $1,329 | $10,632 |
| For each extra child, add | $34 | $272 |
To get a Low Income Health Care Card your income must be under the limits across each week in an 8-week period.
Access our Low Income Health Care Card calculator here.
Commonwealth Seniors Health Care Card Income Test
The income test for the Commonwealth Seniors Health Care Card focuses on adjusted taxable income. Adjusted taxable income involves adding up various income sources such as:
- Gross salary (including salary sacrificed amounts)
- Net business income
- Interest income
- Dividends (including franking credits)
- Net Rental Income (Gross rental less associated expenses)
- Some superannuation income streams.
Then adjusted for the following:
- foreign income
- tax-exempt foreign income
- total net investment losses
- reportable fringe benefits
- reportable superannuation contributions
- certain tax-free pensions or benefits
In addition, deemed income from Account Based income streams is added to the total amount. If you have a partner, their income can also affect your adjusted taxable income. To meet the income test, your income must be less than the following:
| Status | Income Limits^ |
| Single | $95,400 |
| Couples | $152,640 |
| Couples separated by Illness | $190,800 |
^Current until 20 September 2024.
Benefits and Access
Both cards offer valuable benefits, including prescription medication discounts, bulk-billed doctor visits, and concessions on various services. The benefits are designed to alleviate the financial strain of healthcare expenses for cardholders.
Access our Commonwealth Seniors Health Care Card calculator here.
Applying for the Cards
Applying for either card involves providing documentation to support your income and eligibility. For the Low-Income Health Care Card, you need to demonstrate that your gross income falls within the specified threshold. For the Commonwealth Seniors Health Care Card, adjusted taxable income is the focus, with higher thresholds due to the senior demographic it serves.
Conclusion
Understanding the differences between the income tests for the Low Income Health Care Card and the Commonwealth Seniors Health Care Card is crucial when determining eligibility and benefits. Each card targets a specific demographic, aiming to provide much-needed financial relief for healthcare-related expenses. By grasping the nuances of these income tests, individuals and seniors can make informed decisions to access the right card and secure affordable healthcare support. It is possible to hold both the Commonwealth Seniors Health Care Card and the Low Income Health Care Cards. It may be beneficial to hold both cards simultaneously as each separate Card may provide additional benefits over the other, however, the recipient needs to be over age pension age (Age 67 from 1 July 2023) to qualify for both cards.
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