More older Australians will now be eligible for the Commonwealth Seniors Health Card as Centrelink income thresholds increase this month. The change, effective from 20 September 2025, means that thousands of self-funded retirees who do not receive the Age Pension will gain access to cheaper medicines and other concessions.
Who is eligible?
The card is available to Australians who have reached the pension age of 67 but are not receiving Centrelink payments like the Age Pension.
From 20 September:
- Singles can earn up to $101,105 per year (up from $99,025).
- Couples can earn up to $161,768 per year (up from $158,440).
Services Australia confirmed these thresholds are reviewed every year in line with the Consumer Price Index (CPI).
When assessing income, the agency considers:
- Adjusted taxable income
- A deemed amount from account-based income streams such as pensions and annuities
What’s changing with deeming rates?
Deeming rules will also change from 20 September 2025:
- For singles, the first $64,200 will be deemed to earn 0.75% per year.
- For couples, the first $106,200 will be deemed to earn 0.75% per year.
This adjustment ensures the system better reflects the reality of retirement income.
What are the benefits of a Commonwealth Seniors Health Card?
Cardholders can access thousands of dollars’ worth of savings each year, including:
- Cheaper prescriptions: Medicines under the Pharmaceutical Benefits Scheme (PBS) cost just $7.70 per script. Once annual out-of-pocket costs hit $277.20, medicines are free for the rest of the year.
- Bulk-billed doctor visits, depending on the GP.
- Medicare Safety Net refunds, reducing out-of-pocket healthcare costs.
- State, territory, and local concessions: Discounts on rates, utilities, and public transport in some regions.
Government response
A spokesperson from Services Australia said:
“We review this test on 20 September each year in line with the Consumer Price Index.”
The update is part of the government’s broader commitment to support older Australians struggling with the cost of living while keeping the system fair and transparent.
Advocacy and political reaction
Advocacy groups have welcomed the threshold rise, saying it will ease pressure on retirees who just miss out on the Age Pension. Social policy experts also note the changes will help ensure more seniors access affordable healthcare and avoid unnecessary financial stress.
