Centrelink Concession Cards are a vital part of life for many Victorians. These cards offer access to a range of benefits and concessions, which can make life a lot easier. In this article, we will briefly discuss the benefits and eligibility of select Centrelink Concession Cards in Victoria. We will also answer some common questions about these cards.
What are concessions?
Concessions are discounts on goods or services offered to assist people who are on a low income or facing financial hardship. Centrelink Concession Cards entitle cardholders to discounts on a range of items, including:
- Electricity and gas bills
- Water bills
- Telephone bills
- Council rates
- Tolls
- Public transport fares
- Prescription medicines
Pensioner Concession Card, Low Income Health Care Card, and Commonwealth Seniors Health Card (CSHC)
The Age Pension has a benefit called the Pensioner Concession Card (PCC). This card can provide senior-aged Victorians with many benefits. We will compare the benefits of the Pensioner Concession Card with other Centrelink cards, specifically the Low Income Health Care Card (LIHCC) and the Commonwealth Seniors Health Card (CSHC). We will also explore the national and state benefits provided by these three Centrelink concession cards and the Victorian state seniors cards.
National Benefits – Centrelink Concession Cards
The following national benefits are available to all three Centrelink cards:
- Extended Medicare Safety Net (EMSN). This gives a higher rebate to Australian families and singles who have to pay for out-of-hospital Medicare services. Once they meet the yearly limit of how much they have to pay, Medicare will pay up to 80% of any future costs for out-of-hospital services. People with concession cards have a lower limit for when they get this rebate. The EMSN thresholds are updated every January 1st. For 2021, the thresholds are as follows:
- $697.00 for Commonwealth concession cardholders, including those with a Pensioner Concession Card, a Health Care Card, or a Commonwealth Seniors Card, and people who receive Family Tax Benefit (Part A)
- $2,184.30 for all other singles and families
The EMSN is different from, but works in tandem with, the Original Medicare Safety Net (OMSN). Under the OMSN, once the annual threshold is reached, Medicare benefits increase to 100% of the Medicare Benefits Schedule fee for all out-of-hospital services for the rest of the calendar year. Individuals can then be eligible for the EMSN for an additional rebate. The OMSN threshold is indexed each year on January 1st. The threshold for 2021 is $481.20.
- Pharmaceutical Benefits Scheme (PBS). People with concession cards can use the PBS to pay a maximum of $6.60 ($41.30 for people without concession cards) for each medicine on the PBS. If you want to know if a medicine is eligible for the PBS, you can ask your local pharmacist or look it up on the PBS website.
The PBS safety net threshold is $316.80 per year. Once the cardholder has paid this amount, they will not have to pay for their medicines for the rest of the year. However, where two or more brands offer the same medicine, they may have different prices, so a more expensive brand may charge a premium on top of the PBS prescribed amounts.
- Bulk-Billed Doctor Visits. Some doctors may receive higher Medicare payments if they treat a concession cardholder. As a result, certain practices that do not bulk bill for a general patient may bulk bill for a concessions cardholder (but are not required to).
- Australia Post. Concession cardholders can avail of discounts for stamps and mail redirection.
The PCC also includes additional national advantages that the LIHCC and CSHC do not. These are:
- Hearing Services. Subsidised hearing aids and assistive listening devices are both available for PCC holders.
- Telstra Services. Pensioner discount is offered for home customers.
Victorian Benefits – Seniors Card
You may be eligible for a seniors card if you are:
- Aged 60 or over
- Working less than 35 hours per week
- Permanent resident of Victoria
Benefits of the seniors card include discounts on:
- Council Rates
- Water
- Electricity
- Gas
- Car Registration
Most people are better off by thousands.
Concession Cards Value
The one-off Pensioner stamp duty concession is a large benefit of the PCC, LIHCC and CSHC in Victoria. If you buy a home for $330,000 or less, you will not have to pay any stamp duty (the maximum concession is $12,870 for $330,000 purchases). This benefit gets smaller in value for homes up to $750,000 where it ceases.
If you are a first time buyer, you will need to choose whether to get this concession or the benefits that are available to first time buyers. You cannot get both at the same time.
Additional Victorian Benefits
There are other less common concessions cardholders might benefit from, including but not limited to:
- Non-mains water concession (PCC and LIHCC)
- Excess electricity concessions (PCC and LIHCC) – if electricity bill is greater than $2,973 p.a.
- Excess gas concession (PCC and LIHCC) – if gas bill is greater than $1,644 p.a.
Conclusion
Centrelink Concession Cards can make a big difference in the lives of Victorians who are struggling to make ends meet. If you think you may be eligible for a Centrelink Concession Card, we encourage you to apply.
