Changes to the Commonwealth Seniors Health Card

As you may be aware, the Federal Parliament has recently debated the Social Security and Veterans’ Entitlements Amendment (Commonwealth Seniors Health Card) Bill 2009. This Bill proposes to amend the income testing used to determine eligibility of self-funded retirees and veterans for the Commonwealth Seniors Health Card (CSHC).

The Coalition took the view that the government should be doing all they can to protect the interests of self-funded retirees and veterans, especially in the current economic climate.  Yet this Bill will dramatically increase the cost of living of an estimated 22,000 self-funded retirees who will now be deemed ineligible for the benefits that the CSHC can provide.

Currently the CSHC is available to Australians who are over the age pension age (but do not receive the age pension) and who earn less than $50,000 a year for singles or $80,000 a year combined for couples.  The threshold will not change, but the assessable income will be expanded to include income from a taxed superannuation fund and income that is salary sacrificed to superannuation.  These measures will effectively push many self-funded retirees and veterans above the threshold of eligibility.

I spoke in Parliament on the 16 and 17 March 2009 on this issue, appealing to the government to abandon this latest cost-cutting measure at the expense of many self-funded retirees and veterans.

For your information this Bill will continue to be debated in the Senate during the May sittings.  I will be following the outcome of the Senate discussions closely.

Please do not hesitate to contact my office if you are concerned about this Bill, or would like to raise any other issues affecting you.

Yours Sincerely,

JUDI MOYLAN