Questions of the Week – Commonwealth Seniors Health Card

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Question: I currently subscribe to the Switzer Report. My wife and I have been receiving the CSHC (Commonwealth Seniors Health Card) for the past six years as we have had superannuation income and no taxable income.

In December, 2016 we sold a townhouse we have been using for holidays since 1992. This has created a capital gain of $168,000 and 50% of this is taxable between the two of us in our 2016-2017 tax year. This together with a taxable amount of $5,000 each from share income makes our taxable income $94,000 between the two of us. This puts us over $84,472 allowable for a couple and we will now lose the CSHC and will have to reapply for it.

In the 2017-2018 financial year, we will again have no taxable income but will have to take into consideration our superannuation income due to the new rules and as our superannuation income is above the $84,472 we will not be eligible to qualify for the CSHC. We are over the limit for the 2016-2017 financial year by about $10,000. Is there any way we can spread this over more than one year and reduce our taxable income?

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