Q: The increases in the income test allowances for the Commonwealth Seniors Health Card (CSHC) for self-funded retirees in the recent budget suggest I could be eligible for a card, but I’m finding it hard to find succinct definitions of what is included as income in the test. Why are there rules like adjusted taxable income and deemed income for account-based super pensions when working out an entitlement to the CSHC? How are they different from taxable income and account-based pension income? My retirement income includes rent from a property, a Commonwealth defined benefit pension that is partly taxable, an SMSF with a pension that pays no tax, and an accumulation account in the SMSF paying 15 per cent tax. Paul

A: With attractions like paying only $7.30 for a chemist prescription compared to at least $30 (plus a host of other non-medical concessions), it’s hardly surprising tens of thousands of budget-conscious self-funded retirees like yourself who haven’t previously qualified are checking their eligibility for the CSHC given a more generous income test allowance that now applies.