At 74 with a substantial superannuation balance of $1.6 million, you might think accessing a healthcare card is out of reach. But here’s where it gets controversial: even with significant savings, eligibility for the Commonwealth Seniors Health Card (CSHC) isn’t solely about your assets. It’s primarily about your income—and this is the part most people miss. Let’s break it down.
Opinion
February 11, 2026 — 5:01am
To qualify for the CSHC, you must be of pensionable age (currently 67) and not eligible for the Age Pension. While there’s no asset test, there’s a strict income test. This includes your deemed income from superannuation (if you’re drawing a pension) plus your adjusted taxable income. For singles, the cutoff is $101,105 annually. Here’s where it gets tricky: your deemed income from super is calculated at $42,716 per year, leaving you a buffer of $58,389 for taxable income. With your rental income and work earnings totaling around $60,000, you’re likely just over the limit. But here’s a thought-provoking question: Could strategically reducing your taxable income or adjusting your pension withdrawals make a difference? Consulting an accountant or financial advisor might reveal options, like rolling back a portion of your pension to the accumulation phase to lower your deemed income.
Now, let’s shift gears to another scenario. Imagine you’re approaching 60 with a combined household income of $500,000, a $7 million home, and a $1 million investment property. You’re considering a transition-to-retirement (TTR) pension and reducing work hours. And this is the part most people miss: while a TTR can be a great strategy, non-concessional contributions to super are capped if your balance exceeds $2 million (rising to $2.1 million post-June 30). However, you could contribute to your spouse’s super, especially with a minimal age gap. Concessional contributions are capped at $30,000 annually, including employer contributions, so reducing work hours might free up some space for these.
Next, let’s tackle investments. Say you have a share portfolio worth $940,000 with a cost base of $780,000. Selling and reinvesting could reset your cost base, potentially reducing future capital gains tax (CGT). But here’s where it gets controversial: while selling at a loss can offset gains, timing sales across multiple years could further minimize CGT. Plus, reinvesting in franked dividend stocks could boost your income, especially in retirement with a low tax rate.
Finally, a common misconception about CGT: if you sell or gift a property below market value, the tax office still assesses it at market value for CGT purposes. For instance, selling a $610,000 property to your son for $545,000 doesn’t exempt you from CGT on the full market value. Thought-provoking question: Are there strategies to mitigate this, or is it an unavoidable tax reality?
Noel Whittaker, author of *Retirement Made Simple and other personal finance books, invites your questions at noel@noelwhittaker.com.au. Remember, this advice is general, and you should always seek personalized professional guidance before making financial decisions.*
For expert tips on saving, investing, and maximizing your money, subscribe to our Real Money newsletter [link]. Connect with Noel Whittaker on X [@NoelWhittaker] or via email.
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