The Commonwealth Seniors Health Card (CSHC) is an income-tested concession card available to Australians of Age Pension age who are not receiving a relevant income support payment and meet other eligibility requirements. Because the CSHC has no assets test, self-funded retirees with substantial asset bases can still qualify, provided their assessed income sits below the relevant income limits.
The CSHC income limits are reviewed each year on 20 September in line with movements in the Consumer Price Index (CPI). Following the 20 September 2026 review, the annual income limits are $105,048 for singles, $168,076 for couples combined, and $210,096 for couples separated by illness, respite care or prison. An additional $639.60 applies for each dependent child in your care.
However, qualifying requires a clear understanding of how Services Australia calculates Adjusted Taxable Income (ATI) and applies deeming rates to Account-Based Pensions.
What Concessions Does the CSHC Provide?
The card delivers federal, state, and local subsidies. These are subject to availability and additional eligibility conditions may apply. Concessions may include:
- Pharmaceutical Benefits Scheme (PBS): Access to PBS-listed prescription medications at the concessional rate of up to $7.70 per script in 2026. Once the PBS Safety Net threshold is reached, concessional cardholders can receive PBS medicines for no charge for the remainder of the calendar year, subject to applicable conditions.
- Medicare & Medical Costs: Access to bulk-billed doctor visits where the doctor chooses to bulk bill, and increased benefits for eligible out-of-pocket and out-of-hospital medical expenses through the Medicare Safety Net.
- State & Local Concessions: Depending on your state of residence, cardholders may receive concessions on council rates, water charges, energy bills, and public transport.
The Eligibility Criteria: Who Qualifies?
To qualify for the CSHC, you must meet the relevant age, residency, income and payment requirements, as well as the applicable identity and Tax File Number requirements.
- Age: Have reached Age Pension age (currently 67 years).
- Residency: Meet the Australian residence requirements and live in Australia, or hold an applicable Special Category visa.
- No Income Support Payments: You cannot be receiving an income support payment from Centrelink or the Department of Veterans’ Affairs, or a DVA-issued Pensioner Concession Card or Commonwealth Seniors Health Card.
The Income Test: How Services Australia Assesses Wealth
The CSHC income test combines your Adjusted Taxable Income (ATI), and your partner’s ATI if applicable, with deemed income from relevant account-based income streams.
| Adjusted Taxable Income | Deemed Income from Account-Based Income Streams |
| Taxable income Total net investment losses Reportable fringe benefits Target foreign income Reportable superannuation contributions |
Balance deemed at 1.75% (lower tier) 3.75% (upper tier) |
Current CSHC Income Limits
| Status | Annual Income Limit |
| Single | $105,048 |
| Couple (Combined) | $168,076 |
| Couple (Separated by illness, respite, or prison) | $210,096 |
| Child Add-on | +$639.60 per dependent child |
The Deeming Rule: How Account-Based Pensions Are Treated
Once you meet a condition of release, you can either leave your superannuation in accumulation phase or commence an account-based pension. For CSHC purposes, super held in accumulation is generally not subject to deeming, whereas once an account-based pension commences, the account balance is generally subject to the social security deeming rules and the resulting deemed income is included in the CSHC income test. As a result, commencing an account-based pension may increase the income assessed for CSHC purposes.
This differs from the Age pension means test, under which accumulation-phase super is generally deemed once a person reaches Age Pensions age.
For relevant account-based income streams, Centrelink assumes the account earns a set return, regardless of actual portfolio performance or cash drawdowns:
- 1.75% on the first $66,800 (single) or $110,600 (couple combined) of financial assets.
- 3.75% on any balance above those thresholds.
Worked Example: How Much Super Can You Hold?
Consider a couple with no taxable income (e.g., no employment income, no taxable trust distributions, and no taxable rental yields) whose wealth is held entirely inside account-based pensions.
- Combined CSHC Threshold: $168,076
- Lower Tier Deeming (1.75% on first $110,600): $1,935.50
- Remaining Allowable Deemed Income: $166,140.50
- Upper Tier Deeming (3.75%): $166,140.50 ÷ 0.0375 = $4,430,413.33
- Maximum Combined ABP Balance: ~$4.541 million
Strategic Takeaway: Under these assumptions, a couple could hold approximately $4.54 million in Account-Based Pensions and remain below the CSHC income threshold, before allowing for any other assessable income.
This example illustrates the CSHC income test only. The amount that can be transferred into an account-based pension is subject to each person’s transfer balance cap.
3 Strategic Traps That Can Disqualify Self-Funded Retiree
- Realising Large Capital Gains Outside Super: Selling an investment property or non-super shares may trigger a taxable capital gain and increase your Adjusted Taxable Income for the relevant financial year. However, a one-off capital gains tax event may not completely rule out your ability to claim the CSHC. Depending on the circumstances and timing, Centrelink may consider income information from the relevant previous tax year and, where income is expected to be within the applicable limit, evidence supporting an estimate of your current financial year income.
- Holding Super in Accumulation vs. Pension Phase: Once you meet a condition of release, you can either leave your superannuation in accumulation phase or commence an account-based pension. For CSHC purposes, super held in accumulation is generally not subject to deeming, whereas once an account-based pension commences, the account balance is generally subject to the social security deeming rules and the resulting deemed income is included in the CSHC income test. As a result, commencing an account-based pension may increase the income assessed for CSHC purposes.
- Private Company & Trust Distributions: Distributions from family discretionary trusts flow into personal taxable income, directly increasing ATI. Retaining earnings within an investment company structure requires careful Division 7A management but may reduce personal taxable income for CSHC testing.
Frequently Asked Questions
Does the Commonwealth Seniors Health Card have an assets test?
No. The CSHC has no assets test. However, you must satisfy the income test, which combines Adjusted Taxable Income with deemed income from relevant account-based income streams.
Are my superannuation pension drawdowns counted as income for CSHC?
No. Regular cash drawdowns from an Account-Based Pension are not counted as income for the CSHC income test. Instead, Services Australia applies deeming rules to the account balance to calculate an assumed annual income figure.
How often are CSHC income thresholds indexed?
The income thresholds for the Commonwealth Seniors Health Card are indexed annually on 20 September in line with movements in the Consumer Price Index (CPI). The current thresholds in this article apply from 20 September 2026.
This article is intended for informational purposes only and does not constitute personal financial, taxation, or Centrelink advice. Thresholds, deeming rates, and legislative rules are subject to change. The figures in this article are current as at 20 September 2026. Before making financial decisions, consider your individual objectives and consult an authorised financial adviser.