Age pensioners received welcome news at the start of the new year relating to the income test and their pension payments. That change has flow-on benefits for older Australian who have a Pension Concession Card.
The new Centrelink rule, which came into effect on 1 January, makes it easier for older Australians who receive a full or part pension to work. That’s being strongly encouraged due to a nationwide labour shortage and aided by a temporary change to the Age Pension Work Bonus.
Under the 1 January rule, if you receive employment income, Services Australia can now temporarily suspend your Age Pension payment for two years if you earn more than the threshold. Previously, pensioners were cut off completely if their income exceeded the threshold and forced to reapply.
Given the complexity of applying for the pension – at least initially – the new rule is a welcome move.
Read: Work Bonus increase extended until end of 2023
Services Australia says of the switch: “We can do this [suspend the Age Pension] if your employment income goes over the cut-off point for more than six fortnights in a row.
“We can do this for up to two years. This means that you don’t have to reclaim if you start earning less, or stop working.”
Also since 1 January 2023, age pensioners and disability support pensioners are able to retain their Pensioner Concession Card and its benefits for two years if support payments are suspended due to the income test.
Currently, those two groups lose eligibility for the concession card after 12 weeks and 52 weeks respectively if their level of income goes above the thresholds.
Read: Age Pension payment rates
If temporarily absent from Australia, the maximum qualification period of up to six weeks still applies.
You can get a card if you receive an Age Pension, Carer Payment, Disability Support Pension or JobSeeker payment and are single, caring for a dependent child and looking for work.
You don’t need to apply for a Pensioner Concession Card, Centrelink will send you one if you’re eligible.
The Pensioner Concession Card entitles holders to:
- cheaper medicine under the Pharmaceutical Benefits Scheme
- bulk-billed doctor visits, which will depend on your doctor if you are eligible for these
- a bigger refund for medical costs when you reach the Medicare Safety Net
- help with hearing services, such as the Hearing Services Program on the Department of Health and Aged Care website.
- discounts to redirect your mail through Australia Post.
Read: Where have all the financial advisers gone?
Your state or territory government and local council may offer you more benefits, such as: discounts on utility bills, property and water rates, public transport fares and vehicle registrations.
The Pensioner Concession Card is different to the Commonwealth Seniors Health Card (CSHC). The CSHC offers a big range of discounts and benefits and eligibility was extended last year meaning many more older Australians now qualify.
Do the 1 January changes make life easier for you? Was applying for the Age Pension straightforward or difficult? Why not share your thoughts in the comments section below?
We do seasonal work (mostly the winter months) and had our Pensioner Concession Card taken off us end of September, I had to apply for Concession Health Card to keep our medical bills at bay, we have had very little to no work the last two months and wondering if we are eligible for this change of two year status or if we still have to go back and apply fully again. My Husbands peak work period starts end of March to September, (He is Tour Coach Driver) but has been decreasing the tours to suit his age ability It is also very sporadic and not consistent. I work 13 Hours a week to keep my hand in and supplement the income regularly. We may not go much past this year due to our age and ability.
My hubby had one. So I enjoyed free GP visits. One day C-link reassessed the value of a property we owned and that took us over the limit. Of course they didn’t tell us and I was embarrassed to walk out of the GP office and be given a bill instead of a goodbye. We have since sold that property and have what they call “too much money” (despite zero income) to qualify.
Bring on the universal pension, like most other places in the world, where us who worked hard and saved money are not penalised.
Every time I am forced to deal with C-link it depresses me so much I sometimes wonder if it is worth the hassle. And they have the temerity to call themselves “Human services”.
It won’t change my entitlement to the PCC at all. I haven’t been able to work for around 20 years, now, and that won’t change just because I’ve now become an age pensioner.