
2025-26 FBT Checklist
March 6, 2026
Payday super checklist for employers – steps to stay compliant
March 6, 2026The Commonwealth Seniors Health Card (CSHC) can be
valuable for many self-funded retirees, helping reduce out-of-pocket health
costs (for example, cheaper PBS medicines and other concessions). But its
income tested, and an upcoming rise in deeming rates may affect some people’s
eligibility.
CSHC income cut-off thresholds
To qualify, you must meet the CSHC income test - there is
no assets test. Centrelink assesses your (and your partner’s) adjusted taxable
income and this may also include deemed income from any account-based pensions
(ABPs) you have.
The current CSHC income limits are:
- $101,105
p.a. if you’re single
- $161,768
p.a. for couples (combined)
- $202,210
p.a. for couples separated by illness/respite care/prison.
What are deeming rates?
Deeming is the Government’s method of assuming a set rate
of return on financial assets, rather than using your actual earnings. It’s
designed to keep the rules simple and treat people consistently, regardless of
how their money is invested.
Deeming commonly applies to assets such as:
- bank
accounts and term deposits
- shares
and managed funds.
For CSHC purposes, deeming is relevant if you have an ABP
as these products are generally deemed and counted under the income test.
Deeming rates are increasing from 20
March 2026
The Government is increasing the deeming rates. From 20
March 2026, the new deeming rates will be:
- 1.25%
(lower rate) for financial assets up to $64,200 (singles) and $106,200
(couples combined)
- 3.25%
(upper rate) for financial assets above those thresholds.
How this could affect your CSHC
If you’re close to the CSHC income limit, higher deeming
rates can increase your assessed income even if your actual investment earnings
don’t change. That may mean you:
- lose
eligibility for the CSHC, or
- don’t
qualify when you otherwise expected to.
This risk is greatest for self-funded retirees who have significant taxable income in addition to their ABP where deeming applies.
What to do next
If you’re near the thresholds, it’s worth reviewing your
adjusted taxable income plus any deemed income using the new deeming rates.
If you’re unsure how this impacts you, consider seeking
advice. A quick calculation can often show whether you’re comfortably under the
limit or sitting in the “at risk” zone as the new rates begin.

