You don't have credit card details available. You will be redirected to update payment method page. Click OK to continue.
My wife and myself have a CSHC which we have had for a number of years and have not had to reapply for it on an annual basis. We both salary sacrifice which brings us under the 80k limit. I am 72 and my wife 69 years of age. Reading your article it is not clear on whether to add back salary sacrifice or to base our eligibility on our combined taxable incomes as per the tax returns. Also I understand that we must move from the accumulation phase of SMSF to allocated pension phase if we are to avoid having the pension included in the future CSHC eligibility income test.
A: Thanks for the email.
Please refer to the following:
The income test for the CSHC is found here.
It indicates that salary sacrifice contributions are included in the CSHC income test as they are voluntary contributions made by your employer.
(I’m assuming you have an employer and are not making personal contributions that are then claimed as a tax deduction.)
Centrelink always says when your circumstances change (more or less assets and/or income) then you should let them know ASAP. I suggest you do this and you might need to beg for mercy if you shouldn’t have been receiving the CSHC once salary sacrifice contributions are included
In addition the same website indicates that this concession card must be applied for every year. I can’t explain why this hasn’t applied to you.
The Account Based Pension exemption is the information the Government has released and your understanding matches that Govt announcement. We’ll know more specific details once we see legislation.
I hope this information helps.
Cheers,
Tony Negline
