Commonwealth Seniors Health Card Income Test 2026: How It’s Actually Calculated

by Nasser ZreikaAug 25, 2026Centrelink & Age Pension

The Commonwealth Seniors Health Card (CSHC) has no assets test — eligibility depends entirely on your adjusted taxable income staying under $101,105 a year for singles or $161,768 combined for couples (plus $639.60 per dependent child), which includes deemed income from account-based pensions and other financial assets, catching out many self-funded retirees who assume their super or investment property rules them out. Here’s exactly how the test works, the current thresholds, and how the September 2026 deeming rate rise could affect your eligibility.

What Is the Commonwealth Seniors Health Card?

The CSHC is a concession card for people who have reached Age Pension age but don’t qualify for the Age Pension itself, usually because their assets are too high. It isn’t a payment — it gives you access to cheaper PBS prescriptions, bulk-billing incentives for some GPs, and various state and territory concessions on things like electricity, council rates and public transport.

Current CSHC Income Thresholds

Services Australia reviews CSHC income limits every year on 20 September, in line with the Consumer Price Index. For the period from 20 September 2025 to 19 September 2026, the annual adjusted taxable income limits are:

Singles: below $101,105 a year
Couples (combined): below $161,768 a year
Couples separated by illness, respite care or prison: below $202,210 a year

You can add $639.60 a year to the relevant threshold for each dependent child in your care.

These limits are due to be reviewed again from 20 September 2026 as part of the annual CPI indexation, so a new threshold is expected around that date. We’ll update this guide once the new figures are confirmed — in the meantime, treat the numbers above as current and double-check anything borderline against Services Australia before you apply.

What Actually Counts as “Adjusted Taxable Income”?

This is where most people get caught out. The CSHC income test isn’t just your salary or pension income — adjusted taxable income includes:

Your taxable income (including net rental losses added back, even though they reduce your tax bill)
Employer super contributions above the compulsory Superannuation Guarantee rate, and any salary-sacrificed super contributions
Reportable fringe benefits
Deemed income from account-based pensions and other financial assets, calculated using Centrelink’s deeming rates — not the income the asset actually produced

This last point trips up a lot of retirees who’ve moved their super into an account-based pension. Services Australia doesn’t count what your account-based pension actually pays you — it applies the deeming rules and counts the deemed amount instead, regardless of your real returns.

How Deeming Affects Your CSHC Income Test

Deeming rates are rising from 20 September 2026, which directly affects how much of your account-based pension and other financial assets count towards your CSHC income test:

Lower deeming rate: rising from 1.25% to 1.75%, on financial assets up to $66,800 for singles and $110,600 for couples (combined)
Upper deeming rate: rising from 3.25% to 3.75%, on financial assets above those thresholds

Because the CSHC income thresholds are fixed dollar amounts, a higher deeming rate can increase your assessed income even when your actual investment returns haven’t changed — and if you’re close to the threshold, that alone could affect your eligibility. See our full deeming rates guide for how the calculation works and a worked example.

Worked Example: How the Income Test Applies

This is a simplified, illustrative example only, included to show how the pieces fit together — it isn’t personal advice and doesn’t reflect any individual’s actual circumstances.

A single retiree past Age Pension age has no wages, but holds $400,000 in an account-based pension (not grandfathered) and does some casual consulting work earning $18,000 a year. Under the post-20-September-2026 deeming rates, the first $66,800 is deemed at 1.75% and the remaining $333,200 at 3.75%, adding roughly $13,664 a year in deemed income.

Combined with the $18,000 consulting income, their adjusted taxable income sits at roughly $31,664 — comfortably under the $101,105 single threshold. The same retiree with a much larger account-based pension balance, or higher consulting income, could find themselves much closer to the limit.

No Assets Test — But Don’t Assume You’re Automatically Eligible

Because there’s no assets test, some retirees with substantial superannuation, investment property or share portfolios do qualify for the CSHC, as long as their adjusted taxable income sits under the threshold. This is different from the Age Pension, where both an income test and an assets test apply, and the lower result generally determines your rate. It’s worth checking both tests separately rather than assuming the same outcome applies to each.

How to Apply for the CSHC

Confirm you’ve reached Age Pension age and aren’t receiving an income support payment from Centrelink or the Department of Veterans’ Affairs
Apply through your MyGov account linked to Centrelink, or by paper form
Have your most recent Notice of Assessment from the ATO ready, as Services Australia uses this to verify your income
If your income fluctuates, be prepared to provide an estimate and understand that your card could be reviewed if your income later exceeds the threshold

For the full picture on eligibility and what the card gives you access to, see our complete Commonwealth Seniors Health Card 2026 guide.

Frequently Asked Questions

Is there an assets test for the CSHC?

No. The CSHC uses an income test only. Your home, super balance and other assets aren’t directly assessed — but any deemed income they generate under the income test still counts.

Does my actual account-based pension income count, or the deemed amount?

Generally the deemed amount, calculated using Centrelink’s deeming rates, rather than what your account-based pension actually paid you — unless your account-based pension is grandfathered under pre-1 January 2015 rules, in which case different assessment rules may apply.

When will the new CSHC income thresholds for 2026–27 be announced?

CSHC income limits are reviewed annually on 20 September in line with CPI. The new thresholds are typically confirmed shortly before that date — check Services Australia or this guide for the updated figures once released.

Can I hold the CSHC and the Age Pension at the same time?

No. The CSHC is specifically for people who don’t receive an income support payment such as the Age Pension. If you’re on even a small part Age Pension, you’ll usually receive a Pensioner Concession Card instead, which provides broader concessions.