Just what do those cards do?

A Department of Human Services general manager Hank Jongen explains that the Low Income Health Care Card is green and says Health Care Card on the front. The code for “low income” is on the back, indicated with LI next to the card start date.

Pensioners no longer eligible for payment as a result of the changes on January 1 have been automatically issued a Low Income Health Care Card, which will be exempt from the usual income test requirements. This replaces their Pensioner Concession Card.

Pensioners over 65 have also been issued a Commonwealth Seniors Health Card which will be exempt from the usual income test requirements.

Both cards entitle the cardholder to cheaper medicines under the Pharmaceutical Benefits Scheme, and concessions from state and territory governments and local councils.

The cardholder can list dependents (such as a partner or children) on the Low Income Health Care Card so they can also benefit from these concessions.

Concessions available on the Commonwealth Seniors Health Card apply only to the individual cardholder.

Some entitlements are decided by the respective jurisdictions and may vary between place of residence and card type. Check with your state or territory government as to what concessions are available.

Q IN December a reader said he received public service pension of $40,000 a year, superannuation pension of $30,000 a year, and Centrelink pension of $349 per fortnight. He is income tested and his wife does not work. From what I have read, you can’t receive Centrelink if you have a combined income of more than $2992.80 per fortnight. From the reader’s two pension alone he earns $2692.30 per fortnight $69.30 less than the cut-off for Centrelink pension. Why is he entitled to $349 a fortnight?

A I do not have the enquirer’s full details but in many cases a private pension, or even a public service pension, can have a deductible component, which is deducted from the gross pension when the income test is being assessed.

Q IN February you explained the difference between asset and income testing. I still don’t get it. What could the income be from if you are retired and on a pension?

A It could be the money that Centrelink deemed you to be earning from assets such as bank deposits and managed funds or it could be rent from properties you own. Many part-pensioners also receive income from private pensions.