Commonwealth Seniors Health Card (CSHC) — income test
The government will remove the inclusion of gross tax-free superannuation pension income in the proposed amendment to the definition of income used for determining eligibility to the Commonwealth Seniors Health Card. The government will proceed with the inclusion of income that is salary sacrificed to superannuation in the income assessment.
Based on this announcement, from 1 July 2009 the definition of Adjusted Taxable
Income (ATI) used for CSHC will include:
- Taxable Income
- Fringe Benefit
- Target foreign income
- Net investment losses
- Salary sacrifice super contributions
- Personal deductible super contributions.
This policy reversal means that many CSHC holders who were facing the loss of their card from 1 July 2009 may now retain their card. A self funded retiree’s eligibility for the CSHC will now continue to be unaffected by tax free pension income or lump sum super withdrawals.