Commonwealth Consolidated Acts Commonwealth Consolidated ActsThe Seniors Health Card Income Test Calculator at the end of this section is to be used in working out whether a person satisfies the seniors health card income test for the purposes of this Act.
Satisfying the seniors health card income test
1071 - 1 This is how to work out whether a person satisfies the seniors health card income test at a particular time (the test time ).
Method statement
Step 1. Work out the amount of the person's adjusted taxable income for the reference tax year.
Step 1A. If, at the test time, the person, or the person's partner (if any), has at least one long - term financial asset (see point 1071 - 13), work out the person's deemed income amount under:
(a) if, at the test time, the person is not a member of a couple--point 1071 - 11A; or
(b) if, at the test time, the person is a member of a couple--point 1071 - 11B.
Step 1B. Work out the sum of the amounts at step 1 and step 1A (if any).
Step 2. Work out the person's seniors health card income limit using point 1071 - 12.
Step 3. Work out whether the amount at step 1B exceeds the seniors health card income limit.
Step 4. If the amount at step 1B is less than the person's seniors health card income limit, the person satisfies the seniors health card income test.
Step 5. If the amount at step 1B is equal to or exceeds the person's seniors health card income limit, the person does not satisfy the seniors health card income test.
Reference tax year
1071 - 2(1) In the ordinary case, a person's reference tax year is:
(a) if the person has received a notice of assessment of his or her taxable income for the tax year immediately preceding the tax year in which the test time occurred--that immediately preceding tax year; or
(b) otherwise--the tax year immediately preceding the tax year applicable under paragraph (a).
(2) However, if the person has informed the Secretary in writing that the person wishes to have his or her entitlement to a seniors health card determined by reference to his or her adjusted taxable income for the tax year in which the test time occurred (the current tax year ), the person's reference tax year is the current tax year.
Adjusted taxable income
1071 - 3 For the purposes of this Part, a person's adjusted taxable income for a particular tax year is the sum of the following amounts ( income components ):
(a) the person's taxable income for that year, disregarding the person's assessable FHSS released amount (within the meaning of the Income Tax Assessment Act 1997 ) for that year;
(b) the person's fringe benefits value for that year;
(c) the person's target foreign income for that year;
(d) the person's total net investment loss (within the meaning of the Income Tax Assessment Act 1997 ) for that year;
(e) the person's reportable superannuation contributions (within the meaning of the Income Tax Assessment Act 1997 ) for that year.
Note 1: For taxable income see subsection 23(1) and point 1071 - 4.
Note 2: For fringe benefits value see point 1071 - 6.
Note 3: For target foreign income see subsection 10A(2) and point 1071 - 7.
1071 - 4 For the purposes of this Part, a person's taxable income for a particular tax year is:
(a) the person's assessed taxable income for that year; or
(b) if the person does not have an assessed taxable income for that year--the person's accepted estimate of taxable income for that year.
Assessed taxable income
1071 - 5 For the purposes of this Part, a person's assessed taxable income for a particular tax year at a particular time is the most recent of:
(a) if, at that time, the Commissioner of Taxation has made an assessment or an amended assessment of that taxable income--that taxable income according to the assessment or amended assessment; or
(b) if, at that time, a tribunal has amended an assessment or an amended assessment made by the Commissioner--that taxable income according to the amendment made by the tribunal; or
(c) if, at that time, a court has amended an assessment or an amended assessment made by the Commissioner or an amended assessment made by a tribunal--that taxable income according to the amendment made by the court.
1071 - 6 For the purposes of this Part, a person's fringe benefits value for a particular tax year is the person's accepted estimate of the amount by which the total of the assessable fringe benefits received or to be received by the person in the tax year exceeds $1,000.
Note: For assessable fringe benefit see subsection 10A(2) and Part 3.12A.
Target foreign income
1071 - 7 For the purposes of this Part, a person's target foreign income for a particular tax year is the person's accepted estimate of the amount of that income for that year.
Total net investment loss
1071 - 8 For the purposes of this Part, a person's total net investment loss for a particular tax year is the person's accepted estimate of the amount of that loss for that year.
1071 - 9 For the purposes of this Part, a person's accepted estimate of an income component for a particular tax year is that income component according to the most recent notice given by the person to the Secretary under point 1071 - 10 and accepted by the Secretary for the purposes of this Part.
Notice estimating income component
1071 - 10(1) A person may give the Secretary a notice, in a form approved by the Secretary, setting out the person's estimate of an income component of the person for a tax year.
(2) The notice is to contain, or be accompanied by, such information as is required by the form to be contained in it or to accompany it, as the case may be.
(3) The Secretary is to accept a notice only if the Secretary is satisfied that the estimate is reasonable.
Adjusted taxable income of members of couples
1071 - 11 If a person is a member of a couple, add the couple's adjusted taxable incomes for the reference tax year and divide by 2 to work out the amount of the person's adjusted taxable income for the reference tax year.
Deemed income amount
1071 - 11A This is how to work out the person's deemed income amount under this point:
Method statement
Step 1. Work out the total value of all of the person's long - term financial assets (see point 1071 - 13) at the test time.
Step 2. Work out under section 1076 the amount of ordinary income the person would be taken to receive per year on the financial assets:
(a) on the assumption that the only financial assets of the person were the financial assets referred to in step 1; and
(b) on the assumption that the total value of the person's financial assets were the amount at step 1.
Step 3. The result at step 2 is the person's deemed income amount .
1071 - 11B This is how to work out the person's deemed income amount under this point:
Method statement
Step 1. Work out the total value of all of the person's long - term financial assets (see point 1071 - 13) at the test time.
Step 2. If, at the test time, the person's partner has reached the minimum age mentioned in section 301 - 10 of the Income Tax Assessment Act 1997 , work out the total value of all of the person's partner's long - term financial assets (see point 1071 - 13) at the test time.
Step 3. Work out under section 1077 the amount of ordinary income the couple would be taken to receive per year on the financial assets:
(a) on the assumption that section 1077 applied to the person and the person's partner; and
(b) on the assumption that the only financial assets of the person and the person's partner were the financial assets referred to in steps 1 and 2; and
(c) on the assumption that the total value of the couple's financial assets were the sum of the amounts at steps 1 and 2.
Step 4. Divide the amount at step 3 by 2: the result is the person's deemed income amount .
Seniors health card income limit
1071 - 12 A person's seniors health card income limit is worked out using the Seniors Health Card Income Limit Table. Work out which family situation in the table applies to the person. The person's seniors health card income limit is the corresponding amount in column 3 plus an additional corresponding amount in column 4 for each dependent child of the person.
Column 1 Item | Column 2 Person's family situation | Column 3 Amount per year | Column 4 Additional dependent child Amount per year |
1 | Not member of couple | $90,000 | $639.60 |
2 | $72,000 | $639.60 | |
3 | Member of illness separated couple | $90,000 | $639.60 |
4 | Member of respite care couple | $90,000 | $639.60 |
5 | Partnered (partner in gaol) | $90,000 | $639.60 |
Note: The amounts in column 3 are indexed annually on 20 September in line with CPI increases (see sections 1190 to 1194). However, indexation of these amounts is modified for 2023 (see subsection 1192(5BB)).
Long - term financial asset
1071 - 13 For the purposes of this Part, a long - term financial asset is:
(a) a financial investment within the meaning of paragraph (i) of the definition of financial investment in subsection 9(1), where the asset - tested income stream (long term) arises under a complying superannuation plan (within the meaning of the Income Tax Assessment Act 1997 ) that is not a constitutionally protected fund (within the meaning of that Act); or
(b) a financial investment within the meaning of paragraph (j) of the definition of financial investment in subsection 9(1).
Note: Schedule 7 to the Social Services and Other Legislation Amendment (2014 Budget Measures No. 6) Act 2014 preserves the rules in this Calculator for a certain kind of long - term financial asset that was being provided to a person immediately before 1 January 2015 where the person held a seniors health card immediately before that day provided that, since that day, the person has held a seniors health card.