12th Feb 2018
FONT SIZE: A+ A-
Centrelink Q&A: Will I lose my concession card?
Gerald wants to know if he’ll lose his Pensioner Concession Card.

Gerald will soon lose his Disability Support Pension and wants to know if he’ll also have his Pensioner Concession Card (PCC) cancelled. Today, we’ll explain his options, should his card be cancelled.

•••

Q. Gerald
I am on a Centrelink Disability Support Pension, which will cease in 2018 when I turn 65.5 years of age.

At the moment my SMSF is not included in the asset test but as the value of the super fund is approximately $900k and I am a single homeowner, this alone would make me ineligible for an Age Pension.

I have had a pensioner’s concession card for 10+ years. Will this be cancelled due to the high value of my super fund?

A. Unfortunately, if you no longer receive a payment from Centrelink then your Pensioner Concession Card (PCC) will be cancelled.

However, if your income is below the required threshold, you may be eligible for a Commonwealth Seniors Health Card (CSHC). Although the concessions available with a CSHC are not as comprehensive as those granted to PCC holders, you will receive concessions on medical services and prescription medicines.

All content on YourLifeChoices website is of a general nature and has been prepared without taking into account your objectives, financial situation or needs. It has been prepared with due care but no guarantees are provided for ongoing accuracy or relevance. Before making a decision based on this information, you should consider its appropriateness in regard to your own circumstances. You should seek professional advice from a Centrelink Financial Information Services officer, financial planner, lawyer or tax agent in relation to any aspects that affect your financial and legal circumstances.

If you have a Centrelink question, please send it to newsletters@yourlifechoices.com.au and we’ll do our best to answer it for you.

RELATED ARTICLES





    COMMENTS

    To make a comment, please register or login
    Janus
    12th Feb 2018
    10:01am
    Alas, this is so.
    The people who scrimped and saved, did not buy the boats, the golf gear, the travel or the massive house, and kept their cash in investments so that the nation could use the money, and so that they might have some comfort after decades of hard work, using the limits that the governments of the day set, well, they are now being punished severely by this hideous government we now have.

    I am in the same boat, and I wonder what I have done to deserve such punishment.

    I think that this government wishes that we would all hurry up and die...
    HS
    12th Feb 2018
    10:47am
    Eventually, those in Government will die too, sooner or later. Alas. surrounded by luxury accumulated ( not worked for) at your expense.
    Placido
    12th Feb 2018
    11:28am
    Janus, all we can do is actively work towards this governments removal. As soon as possible. If we just complain and don't do much else they will continue, we need to do more than just cast our individual vote although our vote is IMPORTANT.
    Marlin
    12th Feb 2018
    10:39am
    I am in the same boat Janus. Been paying tax since 1963 and still am at 73 and the Medicare Levy as well. Yet no Concession of any sort. And, as super was not in effect for 95% of my working life, my assets are from AFTER TAX Dollars, so how do you think I feel?
    DoreenS
    12th Feb 2018
    11:10am
    hi , my brother is still on the disability support pension with the pensioner health card. he is now 67.
    regards
    Doreenh
    dreamer
    12th Feb 2018
    12:40pm
    I thought you had a choice between the two which one was best for you
    OnlyGenuineRainey
    12th Feb 2018
    4:30pm
    You do get a choice, but I believe the assets test applies to anyone over aged pension age, whether on a disability pension or not.
    OnlyGenuineRainey
    12th Feb 2018
    8:08pm
    I should have said your super is likely counted in the assets test, whichever pension you opt for.
    Old Man
    12th Feb 2018
    11:19am
    If we weren't all different we'd be banking at the Commonwealth and driving Holden cars but we are different and have lived, and are living, our lives in different ways. Some choose to be childless, some choose to have lots of children, some spend their money and enjoy life in that way while some choose to squirrel away every penny and they are happy in that way.

    There comes a reckoning for the way we choose to live our lives and, for some, it's when they want to apply for an age pension. Those who spent it all may be asked to live the rest of their life on just the pension, others may be able to get a bit of pension and some of the earnings from their investments and others will get nothing because they are deemed to have too many assets or too much income. That's called life, deal with it.
    Placido
    12th Feb 2018
    11:30am
    YEs and one way to "deal with it" is change this government, that also is called life, so let's DEAL WITH IT.
    Onemore
    12th Feb 2018
    11:48am
    So Old Man, by the tone of your reply are we to assume that you are in agreement with how this government treats pensioners, yet these politicians whilst serving have all the perks i.e. travelling the world at the taxpayers expense and in the latest case of the deputy P.M. getting his squeeze a cushy number, and at the end of the day retire on a very generous pension which THEY set the rules to, to THEIR benefit.

    I am just curious because there must be many more people out there that think as yourself, but as you said that's called life, no matter how lopsided the rules are that benefit the rich.
    Old Man
    12th Feb 2018
    12:18pm
    Thanks Onemore, the word "rich" gets overused in this forum and every time I ask for a definition of "rich" I don't get a response. The government has decided what "rich" is as far as getting an age pension is concerned as they have put a limit on assets and income. If you own too much or earn too much you don't get a pension. When you reduce assets and income you become eligible for a part or all of a pension. Incidentally, it's not a matter of agreeing with "this" government, whichever party is in power can never seem to please pensioner groups.
    Jake
    12th Feb 2018
    12:39pm
    A mill in Super.......ha ha... greedy bastard, go buy an island
    johnp
    12th Feb 2018
    1:14pm
    So as not to forgo the Old Age Pension ongoing $$ amount
    Basic economics say :
    One should spend down the lump super sum to the lower threshold (think it is $380K-). Like say go on holidays, give to children etc . And apply for the OAP (71 now and get zero benefits at present).
    All the comments etc I have seen over the last year or so have now made may reconsider my super.
    However have to be careful to not lose eligibility to OAP by doing that; so would that be a problem ??
    Sundays
    12th Feb 2018
    1:40pm
    You can spend your money how you want but if you give more than $30,000 away in a five year period, that gifting will be treated as if you still have it by Centrelink. If you want the full pension give your money away 5 years before you retire. Personally, I think the OAP by itself is far too low to have a great retirement, so keeping some, spending some on yourself (not gifting) and getting a part pension, as well as the concession card is a better alternative
    OnlyGenuineRainey
    12th Feb 2018
    8:09pm
    It's a ridiculous system that encourages people to spend assets they may need later in their aging years! The politicians who implemented these policies are brainless!
    McDaddy
    12th Feb 2018
    1:40pm
    The Age Pension is not an entitlement for ll your years of work or taxes paid, otherwise it wouldn't be .means tested. Don't feel too sorry for Gerald with his $900k in Super where it and it's growth are concession-ally taxed, Gerald will get a CSHC so medications will be at $6 per script still and some other concessions. If Gerald gets better than 2.5% return will get same as full single pension. Life is good.
    johnp
    12th Feb 2018
    2:22pm
    Your points are valid and accepted McDaddy. I am just saying from an economics calculation cold hearted sort of way to be able to get the OAP, As an aside its worth noting that the govts' original intention earlier last century was for the OAP to be a universal right to all taxpaying citizens at least. That right was stolen by subsequent govts.
    etty44
    12th Feb 2018
    5:12pm
    I agree with you McDaddy. The Age Pension is not an entitlement , it is a safety net for the aged that don't have the economic means to survive financially without assistance. The wonderful thing about it in this country, is that you don't have to rely on your kids taking you in, or selling trinkets on a road stall until you are 90. There is a safety net in place. And in my book if you have $900K as a single, and own your home, well done to you! But you are streets ahead of most, and don't need the safety net & its perks.
    OnlyGenuineRainey
    12th Feb 2018
    8:17pm
    I agree in part, but will someone please tell me how it's good for a nation to offer spendthrifts, bludgers and layabouts around $1 million of taxpayer dollars to fund retirement while telling people who worked and saved to go suck eggs. Some of them got tax concessions along the way. Many did not! And many with just above the new asset thresholds are receiving incomes of half the aged pension, with no concessions. Sure, they can spend their capital, but then why bother to save it if you are just going to use it for the benefit of taxpayers and get no benefit yourself.

    The aged pension was NOT intended as a safety net. It was intended to be universal and means-test free. And it was, for a time. Now, we have a very flawed system that encourages and rewards cheating, manipulation, and irresponsible living and punishes those who strive to attain a higher standard of living in old age than the pension facilitates (unless they get very wealthy!)

    Gerald should be fine with $900K and a home, but a couple with that amount might struggle to get a return equal to the aged pension + benefits, and that is a sad indictment on politicians who approved a policy that is economically unsustainable and grossly unfair. If the pension only benefited the genuinely disadvantaged, it would be fair to say it's a ''safety net''. It's NOT, because it hands out generously to those who deliberately manipulate to appear to have limited means, and to the grossly irresponsible, while ignoring the very genuine needs of some deserving folk whose only crime was to save moderately well and be honest.
    mike
    12th Feb 2018
    2:49pm
    After Hockey destroyed the retirement plans of all those who worked and saved, and also called disabled rorters whilst the scumbag himself rorted the travel allowance, NOT ONE but several multiples of $288 per night, he said those affected would still retain the PCC.
    This was a lie. Then Liar Turnbull said those who lost the PCC due to Hockeys draconian changes to the assets test would have it reinstated. But this also was a lie. Anyone who had between $813000 and $1.25M on 1/1/2017 had it reinstated, but if you had LESS than $813000 on that day, and lost it a day later, a month later you did not. Numerous letters were written to the Hon Alan Tudge, Mr Abbott, Mr Andrew Gee MP. re the unfairness of the reissue of the PCC, but all the seniors and retirees got in return was typical politacal spin doctoring and typical Liberal Bullshit.
    Placido
    12th Feb 2018
    3:42pm
    Hear Hear!!
    Charlie
    12th Feb 2018
    5:52pm
    I am currently on over 65 Disability pension and have a pensioner concession card. It is identical to age pension except for some small conditions..But I do not own a home.

    When I went on disability support pension 10 years ago I made the mistake of drawing my super and putting it in the bank. But I could not get full disability support pension while I had over $70,000 in the bank. So I had to spend a heap before it got eroded by rent.

    I don't understand the abbreviation SMSF. The word is supposed to be used in full on the page at least once, before the abbreviation is used.
    McDaddy
    12th Feb 2018
    7:15pm
    Self Managed Super Fund. Luckily they changed the rules so now a single person can have about $157k in total financial assets and still get the full pension, not bad.
    OnlyGenuineRainey
    12th Feb 2018
    8:07pm
    ''Not bad'' depends on age and need. For someone aged 90, $157K is a lot. For someone aged 67 and anticipating a need for extensive dental work and possibly other health care, $157K is not much at all. The system is seriously flawed in that it takes no account of future needs. Encouraging people to spend down to qualify for a pension is STUPID, but that's what the current system does. Often, people are far better off spending to qualify rather than trying to live on their assets. That's not a sensible way to manage an economy.
    Charlie
    12th Feb 2018
    11:07pm
    That dental work is one that sneaks up in the 60-65 years. It can make a few thousand disappear in no time.
    Trying to tell them I don't need the big Bugs Bunny smile I just want a strong tooth that will last forever.
    McDaddy
    13th Feb 2018
    8:33am
    If you turning 67 now or in the the next 5 years and don't have more than $157k, you've either had a major financial issue or been asleep at the wheel. Even compulsory super has been in for over 20 years. The OAP will still pay you app $24k pa, how much would you need to have invested to get that return ($500K @ 2.5%)
    alpal
    12th Feb 2018
    7:52pm
    Good Luck trying to set up a My Gov account at Centrelink. No help, and a pain in the rear. Talk about being unhelpful, and a stress. In the end I have given up.
    McDaddy
    13th Feb 2018
    8:35am
    Is it really that hard to open a MYGov account. You need an email address, choose a password, set up some secret questions, do you do Internet Banking, same thing really. Was the problem linking your Centrelink account to it?
    Finni
    16th Feb 2018
    1:00pm
    i am in the same boat, the sooner we start changing our voting habits, then we will get governments who will not be in government long enough to get their pension, then we will see who wont be came to make a decision

    Re Barbany, Yes Minister would have came up with some thing so silly as ort government is doing at the moment
    Aussie
    16th Feb 2018
    1:45pm
    Finni,

    Why worry about the card and other stuff ...is not really important in comparison what will come if we continue voting grease lib's and their cronies ......

    We all should be worry about losing our pensions altogether and the Libs's and friends will be happy .... all they want is for us after 67 years to die and that is it they do not care about us they are all just a seat warmers.

    So yes do not worry about the concessions worry about losing the pension altogether and with that all concessions will go too ....

    THEY WANT US RIP RIP RIP


    Join YOURLifeChoices, it’s free

    • Receive our daily enewsletter
    • Enter competitions
    • Comment on articles