The amount of income a person can have and still be eligible for the CSHC is subject to indexation [3] on 20 September each year.
Current limit [4] (Other Income Support Thresholds and Limits)
To satisfy the CSHC income test, the total of a person's:
must be within the CSHC income limit relevant to their relationship status.
Adjusted taxable income is the sum of the following income components:
Note: The above components must all be for the same reference tax year. Members of a couple must use the same year.
The reference tax year is usually the tax year immediately preceding the current tax year. If the person has not received a Tax Notice of Assessment for the reference tax year, the tax year immediately preceding will be their reference tax year.
Taxable income is the income that the person (and their partner) received for the last financial year, as shown on their Tax Notice of Assessment. If the person, or their partner, does not have a Tax Notice of Assessment because the person or partner was not required to lodge a tax return, then the person may provide an acceptable estimate for the current financial year.
Employer provided benefits are benefits that a person receives from their employer in addition to their wage or salary (eg. private use of car, assistance with accommodation or rent). If the total value of the employer provided benefits received is more than $1,000 per year, the amount above $1,000 will be included as CSHC income.
Target foreign income is foreign income on which the person is not required to pay Australian income tax and is not a fringe benefit. Foreign income is amounts received from a source outside Australia that are:
Note: Foreign income that meets the requirements of excluded income under the VEA, such as a restitution payment for Nazi persecution, is also exempt for CSHC purposes.
More → [9]
A person's total net investment loss for a particular year is the sum of their net losses from financial investments and property for that year. It is the amount of deductible expenses that exceed the gross income from those investments. From the 2009-10 financial year a person's total net investment loss will appear on their Tax Notice of Assessment.
More → [11]
Net financial investment loss occurs when allowable deductions in respect of the particular financial investments exceed gross income from those investments. The term financial investment [3] includes shares, managed funds, managed forestry schemes, as well as a right or option over any of these and similar investments. The deductions must be those allowed by the Australian Taxation Office. Examples of expenses include, but are not limited to, the costs of borrowing to invest in the financial investment, managed fees charged on the investment.
More → [12]
Net rental property loss occurs when the expenses incurred on a rental property exceed the gross rental income during a financial year. Rental property includes any residential or commercial property for which the person receives rent. It includes a person's share of rent from property that is part of a partnership, but excludes cases where the property is owned by a trust or company.
A person's reportable superannuation contributions [3] is the sum of any reportable employer superannuation contributions and any personal deductible superannuation contributions. These are discretionary or voluntary contributions. Post-tax contributions to superannuation are not reportable superannuation contributions.
More → [14]
Reportable employer superannuation contributions are those contributions an employer (or an associate of the employer) makes at the discretion of the employee that could have been received as income. The contribution must be in addition to legally required contributions such as those that must be made under the superannuation guarantee laws or an industrial award. A common example is a contribution an employer makes on behalf of an employee to a superannuation fund under a salary sacrifice arrangement. Such contributions are identified by employers and included on an employee's Payment Summary.
More → [15]
Personal deductible super contributions (generally for the self-employed) are the amounts a person contributes to a superannuation fund for which an income tax deduction is claimed on a personal tax return. Personal contributions which are not claimed as a tax deduction are not included in the definition of reportable super contributions.
More → [16]
A person's Tax Notice of Assessment (TNA) will provide their actual taxable income figures. For CSHC purposes, the most recent TNA is required, preferably from the recently completed tax year.
A person may choose to satisfy the CSHC income test on the basis of their estimated adjusted taxable income for the current financial year if:
The Commission must be satisfied that the estimate is reasonable. For example, in the year following a person's retirement from the workforce, closure of a business, the estimated reduction in the person's income should be commensurate with their previous earnings, or business income.
If a person is entitled to a CSHC on the basis of their estimated CSHC income, they must send a copy of their tax notice of assessment to DVA within:
An account‑based income stream (also known as an allocated pension or transition to retirement pension):
Income deemed on the current account balance of the account‑based income stream will be included in the CSHC income test where:
Account-based income streams will not be included in the CSHC income test if:
Reverted account-based income streams will not be included in the CSHC income test if:
Family Law split account-based income streams will not be included in the CSHC income test if:
For CSHC assessment purposes, income will be deemed on the total of the current account balances of assessable account‑based income streams using the same rates and thresholds under which income is deemed on financial assets for income support pension assessment purposes. The income deemed on account‑based income streams will be added to the adjusted taxable income and compared to the relevant CSHC income limit to determine whether a person satisfies the CSHC income test.
For more information see Deeming Provisions → [21]
Deeming Provisions Deeming Provisions → (go back) [21]
.
Veterans' Entitlements Act 1986 [22] section 118ZZA point 11 - Seniors Health Card Income Limit
Veterans' Entitlements Act 1986 [22] section 118ZZA point 11 - Seniors Health Card Income Limit
Income Tax Assessment Act 1997 Subdivision 290-C Deducting personal contributions
Deeming Provisions Deeming Provisions → (go back) [21]
Indexation is the action of adjusting pension and allowance rates, limits and thresholds to maintain their value against increases in the cost of living and average earnings.
According to section 5J of the VEA, a financial investment means:
but does not include an investment in an FHSA (within the meaning of the First Home Saver Accounts Act 2008) or a designated NDIS amount.
Reportable superannuation contributions is a term defined in the Income Tax Assessment act 1997
Links
[1] https://clik.dva.gov.au/user/login?destination=node/16239%23comment-form
[2] https://clik.dva.gov.au/book/export/html/16239#tgt-VEA_ftn1
[3] https://clik.dva.gov.au/%23
[4] https://clik.dva.gov.au/compensation-and-support-reference-library/payment-rates/current-payment-rates
[5] https://clik.dva.gov.au/book/export/html/16239#tgt-cspol_part5_ftn311
[6] https://clik.dva.gov.au/book/export/html/16239#tgt-cspol_part5_ftn312
[7] https://clik.dva.gov.au/book/export/html/16239#tgt-cspol_part5_ftn313
[8] https://clik.dva.gov.au/book/export/html/16239#tgt-cspol_part5_ftn314
[9] https://clik.dva.gov.au/book/export/html/16239#tgt-cspol_part5_ftn315
[10] https://clik.dva.gov.au/book/export/html/16239#tgt-cspol_part5_ftn316
[11] https://clik.dva.gov.au/book/export/html/16239#tgt-cspol_part5_ftn317
[12] https://clik.dva.gov.au/book/export/html/16239#tgt-cspol_part5_ftn318
[13] https://clik.dva.gov.au/book/export/html/16239#tgt-cspol_part5_ftn319
[14] https://clik.dva.gov.au/book/export/html/16239#tgt-cspol_part5_ftn320
[15] https://clik.dva.gov.au/book/export/html/16239#tgt-cspol_part5_ftn321
[16] https://clik.dva.gov.au/book/export/html/16239#tgt-cspol_part5_ftn322
[17] https://clik.dva.gov.au/book/export/html/16239#tgt-cspol_part5_ftn323
[18] https://clik.dva.gov.au/book/export/html/16239#tgt-cspol_part5_ftn324
[19] https://clik.dva.gov.au/book/export/html/16239#tgt-cspol_part5_ftn325
[20] https://clik.dva.gov.au/book/export/html/16239#tgt-cspol_part5_ftn326
[21] https://clik.dva.gov.au/book/export/html/16239#ref-DeemingProvisions_ftn1
[22] http://www.comlaw.gov.au/Series/C2004A03268
[23] https://clik.dva.gov.au/book/export/html/16239#ref-VEA_ftn1
[24] clik://LEGIS/VEA/point 118ZZA-2
[25] https://clik.dva.gov.au/book/export/html/16239#ref-cspol_part5_ftn311
[26] clik://LEGIS/VEA/point 118ZZA-4
[27] https://clik.dva.gov.au/book/export/html/16239#ref-cspol_part5_ftn312
[28] clik://LEGIS/VEA/point 118ZZA-5
[29] https://clik.dva.gov.au/book/export/html/16239#ref-cspol_part5_ftn313
[30] clik://LEGIS/VEA/point 118ZZA-6
[31] https://clik.dva.gov.au/book/export/html/16239#ref-cspol_part5_ftn314
[32] https://clik.dva.gov.au/compensation-and-support-policy-library/part-10-types-income-and-assets/101-ordinary-income/1015-income-overseas-including-pensions-war-pensions-war-widowers-pension-and-restitution-payments
[33] https://clik.dva.gov.au/book/export/html/16239#ref-cspol_part5_ftn315
[34] clik://LEGIS/VEA/point 118ZZA-7
[35] https://clik.dva.gov.au/book/export/html/16239#ref-cspol_part5_ftn316
[36] http://www.comlaw.gov.au/ComLaw/Legislation/ActCompilation1.nsf/0/EBC5525F0EE8C0A0CA25774C0013B916?OpenDocument
[37] https://clik.dva.gov.au/book/export/html/16239#ref-cspol_part5_ftn317
[38] https://clik.dva.gov.au/book/export/html/16239#ref-cspol_part5_ftn318
[39] clik://LEGIS/VEA/point 118ZZA-3
[40] https://clik.dva.gov.au/book/export/html/16239#ref-cspol_part5_ftn319
[41] https://clik.dva.gov.au/book/export/html/16239#ref-cspol_part5_ftn320
[42] http://legislation.gov.au/ComLaw/Legislation/ActCompilation1.nsf/current/bytitle/576D2EACCCAAF3F8CA25773E00245A98?OpenDocument&mostrecent=1
[43] https://clik.dva.gov.au/book/export/html/16239#ref-cspol_part5_ftn321
[44] https://clik.dva.gov.au/book/export/html/16239#ref-cspol_part5_ftn322
[45] https://clik.dva.gov.au/book/export/html/16239#ref-cspol_part5_ftn323
[46] clik://LEGIS/VEA/point 118ZZA-8
[47] https://clik.dva.gov.au/book/export/html/16239#ref-cspol_part5_ftn324
[48] clik://LEGIS/VEA/point 118ZZA-9
[49] https://clik.dva.gov.au/book/export/html/16239#ref-cspol_part5_ftn325
[50] clik://LEGIS/VEA/section 118ZJA
[51] https://clik.dva.gov.au/book/export/html/16239#ref-cspol_part5_ftn326