Concession cards and benefits

Summary

Concessions and benefits you could access

Cost of living matters whatever your life stage, but particularly as you approach retirement. And there are a range of concession cards available - depending on your eligibility. Some are even available to people before they have retired.

Depending on which card you may be eligible for, they can help you save on some costs, such as utilities, medical services, medications and activities like parks and movies.

Different cards have different qualifying criteria from age to income and asset tests in some cases. Some are issued by states and territories, others by the Commonwealth. The most common cards are:

Seniors Card
Pension Concession Card
Commonwealth Seniors Health Card
Low Income Health Card

You may also be able to access to schemes such as the Home Equity Access Scheme that allows you to borrow money using your home equity.

Benefits of concession cards

Concession cards can give you access to discounts and benefits from the Australian Government and some private businesses. There are two main types of concession cards for retirees: the Pensioner Concession Card and the Commonwealth Seniors Health Card. Each card has different eligibility criteria and benefits.

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If you are eligible for the Government Age Pension, then you are eligible for the Pension Concession Card. If not, you may still qualify for the Seniors Health Card. Depending on which card you are eligible for, you could save on:

GP visits and medication

You could be paying less on your doctor's bill next time you visit your GP. Just be sure to check if your clinic offers concession prices or bulk billing. Plus, your medications just got a little cheaper, with an extra discount under the Pharmaceutical Benefits Scheme (PBS)

Medical services

Enjoy lower out-of-pocket costs for medical services above the Medicare Safety Net. Also, you may get access to state and territory health services such as dental, optical, hearing and podiatry. Varies depending on state or territory.

Utilities

Save on utility bills, rates, public transport, car registration and more (depending on your state or territory)

The Home Equity Access Scheme

The Home Equity Access Scheme lets older Australians who are Age Pension age or older get a voluntary non-taxable loan through Services Australia. You need to use the equity in Australian real estate as security for the loan. Once you have qualified and been approved, you can choose to get the loan amount as a fortnightly income stream, a lump sum or a combination or both. You can choose how much you receive each fortnight – your combined loan and eligible pension payments could be up to 1.5 times your maximum pension rate.

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Eligibility for the Home Equity Access Scheme

To get the Home Equity Access Scheme you need to be eligible to receive one of the following pension types:

Government Age Pension

Government Age Pension

Carer Payment

Carer Payment

Disability Support Payment

Disability Support Payment

You don’t have to be receiving a government pension. For example, you may meet the rules for a qualifying pension but don’t get a payment, for example, your rate is zero because your income or assets are over the threshold. You need to be of Government Age Pension age or older; you or your partner need to own real estate in Australia to use as security for the loan; have adequate and appropriate insurance covering that real estate; and not be bankrupt or subject to a personal insolvency agreement. Other conditions and costs apply, including interest charge.

Find out more about the Home Equity Access Scheme
Here is a link

How it works

You draw an income from the equity in your home over time. You accrue interest on the income as you receive it until you pay off the loan. The income you’ll receive comes from the Australian Government – the same as Government Age Pension payments.

The government is responsible for setting the interest rate of the Home Equity Access Scheme, you can check the current rates on the Services Australia website.

Compound interest is calculated fortnightly on the amount you’ve been paid to date – not the total amount you’re eligible to receive over time.

If your needs change, you can choose to stop receiving the Home Equity Access Scheme income at any time – you’re not locked in.

Repayments

You don’t have to repay anything until you exit the scheme, which happens if you choose to pay off the loan, or if you pass away. You can choose to repay the money you receive through a Home Equity Access Scheme loan (plus the interest accrued), either in part or full, whenever you’re ready or able. If you sell the property, you can either: transfer the loan to another property, including your new home, or repay the loan on the date of settlement.

Advance payments for Age Pensioners under the Scheme

If your loan is under the Home Equity Access Scheme, you may be eligible to access lump sum advance payments. Limits apply.

The scheme could provide immediate access to lump sum payments of up to 50% of the maximum pension rate of your qualifying pension in any 26-fortnight-period. As these change frequently it’s best to view the website for details.

The No Negative Equity Guarantee

No Negative Equity Guarantee means borrowers under the Home Equity Access Scheme, or their estate, won’t owe more than the market value of their property, minus any other mortgages or legitimate encumbrances.

For example, let’s say your loan balance is $300,000. If you sold your property for $250,000 and don’t have a mortgage, you’d only need to pay $250,000 (conditions apply)¹

Deciding if the Scheme is right for you

The Home Equity Access Scheme is complex, with several criteria that need to be explored in detail in relation to your personal situation. To see if you want to apply, and how much you could borrow, Services Australia now offers tools to help you.

Check out the tools. Home Equity Access Scheme - Services Australia

Speak to adviser

It’s important before you make any financial decision, that you consult with a financial adviser to see if it’s right for you. That way you are getting the most up to date advice based on your current financial situation.