Seniors Health Card Income Test Calculator
118ZZA Seniors Health Card Income Test Calculator
The 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.
Seniors Health Card Income Test Calculator
Satisfying the seniors health card income test
118ZZA‑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 118ZZA‑12), work out the person’s deemed income amount under:
if, at the test time, the person is not a member of a couple—point 118ZZA‑10A; or
if, at the test time, the person is a member of a couple—point 118ZZA‑10B.
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 118ZZA‑11.
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
118ZZA‑2(1) In the ordinary case, a person’s reference tax year is:
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
otherwise—the tax year immediately preceding the tax year applicable under paragraph (a).
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
118ZZA‑3 For the purposes of this Division, a person’s adjusted taxable income for a particular tax year is the sum of the following amounts (income components):
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;
the person’s fringe benefits value for that year;
the person’s target foreign income for that year;
the person’s total net investment loss (within the meaning of the Income Tax Assessment Act 1997) for that year;
the person’s reportable superannuation contributions (within the meaning of the Income Tax Assessment Act 1997) for that year.
For taxable income see point 118ZZA‑4.
For fringe benefits value see point 118ZZA‑5.
For target foreign income see point 118ZZA‑6.
Taxable income
118ZZA‑4(1) In this Division:
taxable income has the same meaning as in the Income Tax Assessment Act 1997.
For the purposes of this Division, a person’s taxable income for a particular tax year is:
the person’s assessed taxable income for that year; or
if the person does not have an assessed taxable income for that year—the person’s accepted estimate of taxable income for that year.
For the purposes of this Division, a person’s assessed taxable income for a particular tax year at a particular time is the most recent of:
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
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
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.
Fringe benefits value
118ZZA‑5(1) For the purposes of this Division, 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.
In this point:
assessable fringe benefit has the meaning given by subsection 10A(2) of the Social Security Act 1991.
The value of an assessable fringe benefit is to be worked out in accordance with Part 3.12A of the Social Security Act 1991 except that references in that Part to the Minister and to the Secretary are to be taken to be references to the Minister for Veterans’ Affairs and to the Secretary of the Department of Veterans’ Affairs, respectively.
Target foreign income
118ZZA‑6(1) In this Division:
foreign income, in relation to a person, means:
an income amount earned, derived or received by the person from a source outside Australia for the person’s own use or benefit; or
a periodical payment by way of gift or allowance from a source outside Australia; or
a periodical benefit by way of gift or allowance from a source outside Australia.
target foreign income means foreign income that is not:
taxable income; or
received in the form of a fringe benefit.
For the purposes of this Division, 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
118ZZA‑7 For the purposes of this Division, 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.
Accepted estimate
118ZZA‑8 For the purposes of this Division, 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 118ZZA‑9 and accepted by the Commission for the purposes of this Part.
Notice estimating income component
118ZZA‑9(1) A person may give the Secretary a notice, in a form approved by the Commission, setting out the person’s estimate of an income component of the person for a tax year.
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.
The Commission is to accept a notice only if the Commission is satisfied that the estimate is reasonable.
Adjusted taxable income of members of couples
118ZZA‑10 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
118ZZA‑10A 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 118ZZA‑12) at the test time.
Step 2. Work out under section 46D the amount of ordinary income the person would be taken to receive per year on his or her financial assets:
on the assumption that the only financial assets of the person were the financial assets referred to in step 1; and
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.
118ZZA‑10B 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 118ZZA‑12) 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 118ZZA‑12) at the test time.
Step 3. Work out under section 46E the amount of ordinary income the couple would be taken to receive per year on their financial assets:
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
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
118ZZA‑11 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.
Seniors Health Card Income Limit Table | |||
|---|---|---|---|
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 | Partnered | $72,000 | $639.60 |
3 | Member of illness separated couple | $90,000 | $639.60 |
4 | Member of respite care couple | $90,000 | $639.60 |
For member of couple and partnered, see section 5E.
For illness separated couple and respite care couple, see section 5R.
For dependent child, see section 5F.
The amounts in column 3 are to be indexed annually on 20 September in line with CPI increases (see section 198FAA).
Long‑term financial asset
118ZZA‑12 For the purposes of this Division, a long‑term financial asset is:
a financial investment within the meaning of paragraph (i) of the definition of financial investment in subsection 5J(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
a financial investment within the meaning of paragraph (j) of the definition of financial investment in subsection 5J(1).
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.
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