Retirees receive extra government help as Covid, interest rates hit

More older Australians are accessing the popular Commonwealth Seniors Health Card. See how to qualify and what’s available.

Senior Australians are seeking government social security assistance in record numbers as Covid-19 and shrinking interest rates impact their incomes, new figures show.

The number of Commonwealth Seniors Health Card recipients has jumped almost 9 per cent in 12 months to 430,447 people, and is up 50 per cent over five years, according to Department of Social Security data.

CSHC holders receive cheaper medicines and other benefits, and their numbers have grown more than eight times faster than the number of people on the age pension, which rose by 6 per cent in the same five-year period to 4.37 million.

Age pension payments will rise by up to $14.80 per fortnight from Monday as part of their twice-yearly indexation, and CSHC eligibility also becomes more generous.

Association of Independent Retirees chairman Wayne Strandquist said his organisation and others had been informing seniors that the CSHC did not have an assets test – only an income test.

From September 20, a pension-age person can get a CSHC if their annual taxable and deemed income is below $57,761, and for a couple combined the limit is $92,416.

Association of Independent Retirees chairman Wayne Strandquist Picture: Jonathan Ng

“More and more self-funded retirees are finding that their incomes from bank deposits have dropped and that has caused them to fall under the threshold for the Commonwealth Seniors Health Card,” Mr Strandquist said.

“A lot of self-funded retirees have a good chunk of their savings in cash.”

Many seniors signed up to a CSHC last year when the Federal Government offered cardholders cash handouts as part of its Covid relief packages.

A spokeswoman for Social Services Minister Anne Ruston said the CSHC was available to retirees whose assets made them ineligible for a pension, and could “assist with lower out-of-pocket costs for PBS medicines and other benefits”.

She said other concessions were provided to older Australians by state, territory and local governments plus private providers, but these were “a matter for each respective state or territory government”.

“This can include discounts on utility bills, property and water rates, health care costs and public transport fares,” she said.

“Links to what is available in each state and territory is available on the australia.gov.au website, and more information about state and territory provided concessions is available at the National Seniors Concessions Calculator at https://nationalseniors.com.au/concessions-calculator.”

Mr Strandquist said some state governments and local councils based eligibility for other concessions on CSHC ownership but it varied between states and localities.

“Get the card, and then approach your local and state authorities,” he said.

Many seniors were upset to find their state government did not provide the generous benefits that others did, Mr Strandquist said.

HOW IT WORKS

• The Commonwealth Seniors Health Card provides benefits including cheaper medicines under the Pharmaceutical Benefits Scheme, bulk billed doctor visits (depending on your doctor) and a refund of medical costs after you reach the Medicare Safety Net.

• The CSHC is available to people of age pension age who are not receiving other social security payments and whose income and deemed superannuation pension income is below $57,761 for singles and $92,416 for couples.

• There is no assets test, so qualifying is easier compared with the age pension. It can be claimed online.

• For more details visit servicesaustralia.gov.au.