Latest news with #CommonwealthSeniorsHealthCard
The Advertiser
27-05-2025
- Business
- The Advertiser
Pensioners left hanging as government signals deeming freeze to end
Asset tests affecting age pensioners look set to change in weeks with a freeze on deeming rates to end, despite advocacy groups calling for an extension as Australians struggle with the cost-of-living. Deeming rules assume financial assets earn a specific rate of income, regardless of their actual return, and means test how much pension a person receives as well as eligibility for the Commonwealth Seniors Health Card (CSHC) and aged care fees. If the rates change and some people are deemed to earn more, this will affect how much pension they could take home, or even the concessions they are eligible for under the CSHC. Read more from The Senior Last year, the federal government announced an extension of the deeming rate freeze until June 30, 2025, but no additional extension was announced in this year's budget - meaning thousands of pensioners could see a change in their bank accounts come July 1. The Senior sent questions to Social Services Minister Tanya Plibersek but a department spokesperson responded, seemingly confirming the freeze is to end. "The Government has frozen the deeming rates until June 30, 2025," the spokesperson said. "Regardless of the end of the freeze, the deeming rates can only be changed by a decision of the Minister for Social Services. There has been no decision to change the deeming rates from their current levels." The spokesperson's comments echoed comments those from former Social Services Minister Amanda Rishworth, just prior to Federal Election in May. "The expiry of the deeming rates freeze does not mean the deeming rates will increase automatically after 30 June, 2025. A decision of the Government would be required to change the deeming rate settings." Deeming rates have remained steady at 0.25 per cent for the first $62,600 worth of assets for single pensioners, and 2.25 per cent for anything above that threshold since the freeze was put in place. However, the Reserve Bank cash rate has risen considerably over the past five years. It sat at 0.25 per cent in May 2020 but currently sits at 3.85 per cent. It had risen to 4.10 per cent prior to a cut to the cash rate on May 20. National Seniors has also called for the scrapping of the work bonus, which determines how much someone on the Age Pension can earn before it affects their pension. Instead, the organisation would like to see workers claim a full pension and then pay a reasonable tax rate on top of that. But the Social Services spokesperson said income and asset tests were an important part of the system. "Australia's social security system is a non-contributory resident-based system. For this reason, payments including the Age Pension are targeted to those most in need through income and asset tests," they said. "The Work Bonus benefits Age Pensioners who can and want to work, by disregarding the first $300 they earn from employment each fortnight from the income test. "Pensioners can build up any unused amount of the $300 in a Work Bonus income bank, up to a maximum of $11,800, to offset future work." Share your thoughts in the comments below, or send a Letter to the Editor by CLICKING HERE. Asset tests affecting age pensioners look set to change in weeks with a freeze on deeming rates to end, despite advocacy groups calling for an extension as Australians struggle with the cost-of-living. Deeming rules assume financial assets earn a specific rate of income, regardless of their actual return, and means test how much pension a person receives as well as eligibility for the Commonwealth Seniors Health Card (CSHC) and aged care fees. If the rates change and some people are deemed to earn more, this will affect how much pension they could take home, or even the concessions they are eligible for under the CSHC. Read more from The Senior Last year, the federal government announced an extension of the deeming rate freeze until June 30, 2025, but no additional extension was announced in this year's budget - meaning thousands of pensioners could see a change in their bank accounts come July 1. The Senior sent questions to Social Services Minister Tanya Plibersek but a department spokesperson responded, seemingly confirming the freeze is to end. "The Government has frozen the deeming rates until June 30, 2025," the spokesperson said. "Regardless of the end of the freeze, the deeming rates can only be changed by a decision of the Minister for Social Services. There has been no decision to change the deeming rates from their current levels." The spokesperson's comments echoed comments those from former Social Services Minister Amanda Rishworth, just prior to Federal Election in May. "The expiry of the deeming rates freeze does not mean the deeming rates will increase automatically after 30 June, 2025. A decision of the Government would be required to change the deeming rate settings." Deeming rates have remained steady at 0.25 per cent for the first $62,600 worth of assets for single pensioners, and 2.25 per cent for anything above that threshold since the freeze was put in place. However, the Reserve Bank cash rate has risen considerably over the past five years. It sat at 0.25 per cent in May 2020 but currently sits at 3.85 per cent. It had risen to 4.10 per cent prior to a cut to the cash rate on May 20. National Seniors has also called for the scrapping of the work bonus, which determines how much someone on the Age Pension can earn before it affects their pension. Instead, the organisation would like to see workers claim a full pension and then pay a reasonable tax rate on top of that. But the Social Services spokesperson said income and asset tests were an important part of the system. "Australia's social security system is a non-contributory resident-based system. For this reason, payments including the Age Pension are targeted to those most in need through income and asset tests," they said. "The Work Bonus benefits Age Pensioners who can and want to work, by disregarding the first $300 they earn from employment each fortnight from the income test. "Pensioners can build up any unused amount of the $300 in a Work Bonus income bank, up to a maximum of $11,800, to offset future work." Share your thoughts in the comments below, or send a Letter to the Editor by CLICKING HERE. Asset tests affecting age pensioners look set to change in weeks with a freeze on deeming rates to end, despite advocacy groups calling for an extension as Australians struggle with the cost-of-living. Deeming rules assume financial assets earn a specific rate of income, regardless of their actual return, and means test how much pension a person receives as well as eligibility for the Commonwealth Seniors Health Card (CSHC) and aged care fees. If the rates change and some people are deemed to earn more, this will affect how much pension they could take home, or even the concessions they are eligible for under the CSHC. Read more from The Senior Last year, the federal government announced an extension of the deeming rate freeze until June 30, 2025, but no additional extension was announced in this year's budget - meaning thousands of pensioners could see a change in their bank accounts come July 1. The Senior sent questions to Social Services Minister Tanya Plibersek but a department spokesperson responded, seemingly confirming the freeze is to end. "The Government has frozen the deeming rates until June 30, 2025," the spokesperson said. "Regardless of the end of the freeze, the deeming rates can only be changed by a decision of the Minister for Social Services. There has been no decision to change the deeming rates from their current levels." The spokesperson's comments echoed comments those from former Social Services Minister Amanda Rishworth, just prior to Federal Election in May. "The expiry of the deeming rates freeze does not mean the deeming rates will increase automatically after 30 June, 2025. A decision of the Government would be required to change the deeming rate settings." Deeming rates have remained steady at 0.25 per cent for the first $62,600 worth of assets for single pensioners, and 2.25 per cent for anything above that threshold since the freeze was put in place. However, the Reserve Bank cash rate has risen considerably over the past five years. It sat at 0.25 per cent in May 2020 but currently sits at 3.85 per cent. It had risen to 4.10 per cent prior to a cut to the cash rate on May 20. National Seniors has also called for the scrapping of the work bonus, which determines how much someone on the Age Pension can earn before it affects their pension. Instead, the organisation would like to see workers claim a full pension and then pay a reasonable tax rate on top of that. But the Social Services spokesperson said income and asset tests were an important part of the system. "Australia's social security system is a non-contributory resident-based system. For this reason, payments including the Age Pension are targeted to those most in need through income and asset tests," they said. "The Work Bonus benefits Age Pensioners who can and want to work, by disregarding the first $300 they earn from employment each fortnight from the income test. "Pensioners can build up any unused amount of the $300 in a Work Bonus income bank, up to a maximum of $11,800, to offset future work." Share your thoughts in the comments below, or send a Letter to the Editor by CLICKING HERE. Asset tests affecting age pensioners look set to change in weeks with a freeze on deeming rates to end, despite advocacy groups calling for an extension as Australians struggle with the cost-of-living. Deeming rules assume financial assets earn a specific rate of income, regardless of their actual return, and means test how much pension a person receives as well as eligibility for the Commonwealth Seniors Health Card (CSHC) and aged care fees. If the rates change and some people are deemed to earn more, this will affect how much pension they could take home, or even the concessions they are eligible for under the CSHC. Read more from The Senior Last year, the federal government announced an extension of the deeming rate freeze until June 30, 2025, but no additional extension was announced in this year's budget - meaning thousands of pensioners could see a change in their bank accounts come July 1. The Senior sent questions to Social Services Minister Tanya Plibersek but a department spokesperson responded, seemingly confirming the freeze is to end. "The Government has frozen the deeming rates until June 30, 2025," the spokesperson said. "Regardless of the end of the freeze, the deeming rates can only be changed by a decision of the Minister for Social Services. There has been no decision to change the deeming rates from their current levels." The spokesperson's comments echoed comments those from former Social Services Minister Amanda Rishworth, just prior to Federal Election in May. "The expiry of the deeming rates freeze does not mean the deeming rates will increase automatically after 30 June, 2025. A decision of the Government would be required to change the deeming rate settings." Deeming rates have remained steady at 0.25 per cent for the first $62,600 worth of assets for single pensioners, and 2.25 per cent for anything above that threshold since the freeze was put in place. However, the Reserve Bank cash rate has risen considerably over the past five years. It sat at 0.25 per cent in May 2020 but currently sits at 3.85 per cent. It had risen to 4.10 per cent prior to a cut to the cash rate on May 20. National Seniors has also called for the scrapping of the work bonus, which determines how much someone on the Age Pension can earn before it affects their pension. Instead, the organisation would like to see workers claim a full pension and then pay a reasonable tax rate on top of that. But the Social Services spokesperson said income and asset tests were an important part of the system. "Australia's social security system is a non-contributory resident-based system. For this reason, payments including the Age Pension are targeted to those most in need through income and asset tests," they said. "The Work Bonus benefits Age Pensioners who can and want to work, by disregarding the first $300 they earn from employment each fortnight from the income test. "Pensioners can build up any unused amount of the $300 in a Work Bonus income bank, up to a maximum of $11,800, to offset future work." Share your thoughts in the comments below, or send a Letter to the Editor by CLICKING HERE.
Yahoo
13-02-2025
- Business
- Yahoo
$60,000 Centrelink savings that 1 million retirees are missing out on
More than one million Australians are missing out on thousands of dollars in savings from Centrelink's Commonwealth Seniors Health Card (CSHC) because they don't realise they are eligible for it. The card gives retirees access to cheaper healthcare, along with state-based discounts on things like electricity, rates, public transport and other bills. The CSHC is available to those who have reached the pension age of 67 but are not receiving Centrelink payments like the age pension. There's no asset test to get the card but there is an income test. Retirement Essentials estimates the savings from the card can be as much as $3,000 a year for a single person. That adds up to $60,000 in potential savings for someone who lives until 87. RELATED RBA interest rate cut warning for 4.2 million retirees as banks start lowering savings rates: 'Limiting' Calls for $2 billion cash boost to Centrelink rent assistance as pensioners go without meals: 'To get worse' Rare $1 coin worth up to $350: 'Lucky to find one' SuperEd chief customer officer James Coyle estimated there could be as many as 1.5 million self-funded retirees who don't receive the CSHS, with some 500,000 people already getting it. 'Some of these will have high incomes from rental properties, shares, etc so may not be eligible but a conservative calculation would be in the order of one million self-funded retirees that could be eligible that are not receiving it,' Coyle told The Australian Financial Review. It's thought that retirees are missing out on the savings because they don't realise there have been changes to the income passed to dramatically increase the income thresholds for the card over the last couple of years. The test is reviewed each year in line with the Consumer Price Index. From September 20, 2024, singles can earn $99,025 to be eligible for the card, while couples can earn $158,440 combined. When working out your income, Services Australia said it will look at both your adjusted taxable income and a deemed amount from account-based income streams. That means the government doesn't use the actual income in the test, but a deemed income which is usually less. For example, Coyle said someone with the maximum of $1.9 million in an account-based pension would be deemed to earn around $41,500, which is well below the $99,025 threshold. If you think you could be eligible, you can find out more about the eligibility and income rules here and make a claim here. Age Pension recipients don't receive the CSHC but instead can receive a Pensioner Concession Card. CSHC cardholders can access medicines under the Pharmaceutical Benefits Scheme for just $7.70 a script. This is capped at $277.20 per year, meaning you can get free medicines once you reach this limit. Cardholders can also access bulk billing doctor visits, but this is up to your doctor. Depending on where you live, cardholders can also access state-based discounts on electricity and gas bills, property and water rates, health care costs including ambulance, dental and eye care, and public transport. Challenger estimated that Western Australian residents could get an extra $32,440 in benefits, South Australian residents an extra $11,540, and New South Wales residents an added $5,000 over their lifetime. Victorians, Queenslanders and Tasmanians won't benefit from extra state-based in to access your portfolio
