Responsible Economic Management - Commonwealth Seniors Health Care - adjusted taxable income test 

Key elements

Eligibility for a Commonwealth Seniors Health Card (CSHC) is based on an adjusted taxable income test. Currently, income from a customer's superannuation stream with a taxed source is disregarded when assessing entitlement to a CSHC.

Under this measure, income from this source will be added back on to other taxable income for CSHC assessment purposes. Income that is salary sacrificed to superannuation will also be added back on to their other taxable income for CSHC assessment purposes.

All CSHC customers will be required to provide a tax return for the most recent financial year or, where a tax return is not available, an estimate for that year. In addition, each member of a couple must provide a return or estimate for the same financial year.
 

Background

The measure will ensure that income received by seniors is treated in the same way, and will ensure that the income test is applied to all CSHC holders consistently.

The measure ensures more equitable treatment of people in similar circumstances with similar levels of income.
 

Implementation

1 July 2009.
 

Total Government Funding

This measure is expected to deliver a net saving of $84.8 million over four years.

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