Some changes have been introduced in Australia last month which will impact some retirees.
If you’re a pensioner or a self-funded retiree, if you have recently retired or if you are approaching retirement age, take a look at the latest information:
CSHC Income Threshold changes
The Commonwealth Seniors Health Card. CSHC entitles some seniors to concessions on medical and pharmaceutical costs.
The benefits of the CSHC are:
- prescriptions at the concession rate of $6.80 each
- free prescriptions once you spend up to the PBS Safety Net limit in a calendar year.
If you have a CSHC, you may also be able use it to get discounts and concessions on your:
- electricity and gas bills
- property and water rates
- ambulance services
- dental treatment
- eye care
- public transport fares
The card is available to Australian residents who are over pension age (66 years and six months) and who are not entitled to an income support payment such as an aged Pension or Service Pension, and whose income is below the CSHC income threshold.
However, in 2022, the income threshold has changed.
As of November 4th, 2022, the CSHC threshold is set to increase from:
- $57,761 to $90,000 for singles
- $92,416 to $144,000 for couples
- $115,522 to $180,000 for couples separated by illness, respite care or prison
Increasing the CSHC income threshold will allow more older Australians access to the relevant pharmaceutical and medical benefits, discounts, and other associated concessions that the card provides.
If you are already eligible for a CSHC, you won’t be affected by the change. However, if you’re over the age of 66, it’s worth checking whether you may now be eligible to apply.
You may also wish to speak to your financial advisor or accountant to get some personal advice about your annual income, particularly if you are a self-funded retiree. Some small tweaks could make you eligible for the card and this could potentially work out in your favour. Of course, it depends on your personal circumstances.
You can find out more about CSHC eligibility – click here.
And you can start the process to apply for a card – click here.
Other changes for older Australians
The other change worth noting in 2022 is the downsizer contribution age.
Set at 65 in 2018, the threshold was lowered to 60 from 1 July 2022 and since October has been lowered again, this time to the age of 55.
This means that if you are over the age of 55 and wish to downsize your home, you maybe eligible to make a one-off post-tax contribution to your super of up to $300,000 and the deposit will not count towards your standard contribution limits.
If you are an empty-nester and you’re thinking about retirement, this is an excellent incentive to do so because it gives you the opportunity to boost your super without being penalised. If your superannuation is managed well, you have the potential to be set up for a financially comfortable retirement.
Conditions for downsizer superannuation contributions do apply. For example:
- The home must be in Australia, have been owned by you or your spouse for at least 10 years and the disposal must be exempt or partially exempt from capital gains tax (CGT).
- You have not previously made a downsizer contribution to your super from the sale of another home or from the part sale of your home.
- Prior to (or at the same time) as making your contribution you must provide your fund with the ‘Downsizer contributions into super form’.
Speak to your financial advisor before you take action to sell your home.
Want help to save money and build your superannuation as you approach retirement? Contact Crest today.
Disclaimer: The information contained in this news post is general in nature and is intended to provide a general summary only and should not be relied on as a substitute for professional advice. Whilst the information is considered to be true and correct at the date of publication, changes in circumstances after the time of publication may impact upon the accuracy of the information.
