Health Care Card Eligibility: Low Income Health Care Card Guide 2025–26
Find out if you qualify for a Health Care Card or Low Income Health Care Card in Australia. Income thresholds, benefits, and how to apply for concessions on medicines, bills, and services.
What is a Health Care Card?
A Health Care Card (HCC) is a concession card issued by the Australian Government that provides access to cheaper prescription medicines and a range of state and local government concessions. There are several types of concession cards, but the two most relevant for working-age Australians are the automatic Health Care Card (issued to Centrelink payment recipients) and the Low Income Health Care Card (LIHC), which you can apply for separately based on your income. The Health Care Card should not be confused with the Pensioner Concession Card (PCC), which provides broader concessions and is issued to Age Pension, DSP, and Carer Payment recipients. The PCC generally offers more discounts than the HCC, but both provide prescription medicine concessions under the Pharmaceutical Benefits Scheme. Approximately 3 million Australians hold a Health Care Card or Low Income Health Care Card. The card is particularly valuable for people who need regular prescription medicines, as the PBS safety net threshold is much lower for concession card holders — meaning you reach the point where medicines become free or very cheap much faster. The card is valid for one year and must be renewed annually (for LIHC holders). Automatic HCC holders retain their card as long as they receive a qualifying Centrelink payment.
Types of Health Care Cards
There are several types of Health Care Cards available in Australia: **1. Automatic Health Care Card:** Issued automatically if you receive certain Centrelink payments including JobSeeker Payment, Youth Allowance, Parenting Payment, Austudy, ABSTUDY, Special Benefit, or Farm Household Allowance. You do not need to apply separately — the card is issued when your payment is granted. **2. Low Income Health Care Card (LIHC):** Available to anyone whose income is below certain thresholds, even if you do not receive a Centrelink payment. This is the card most people apply for directly. It is income-tested over an 8-week assessment period. **3. Commonwealth Seniors Health Card:** For self-funded retirees who have reached Age Pension age but do not qualify for the Age Pension. The income threshold is $95,400 per year for singles and $152,640 per year for couples (combined). This card does not have an assets test. **4. Ex-Carer Allowance Health Care Card:** For people aged 16–25 who were previously the care receivers of someone on Carer Allowance. This card helps young people transition from their parents' care. **5. Foster Child Health Care Card:** For children in foster care. The most commonly sought card is the Low Income Health Care Card, which is available to anyone meeting the income criteria regardless of age, employment status, or whether they receive other government payments.
Low Income Health Care Card income thresholds (2025–26)
The Low Income Health Care Card uses a rolling 8-week income test. Your gross income over the 8 weeks immediately before your claim (and each subsequent 8-week period) must be below the threshold. **Weekly income thresholds (2025–26):** - Single: $681.00 per week ($35,412/year) - Couple (combined): $1,173.00 per week ($60,996/year) - Single with one dependent child: $1,173.00 per week - Each additional child: add $34.00 per week These thresholds are indexed annually on 1 January. **What counts as income:** Gross income from all sources — wages, business income, investment income (dividends, interest, rental income), overseas income, taxable pensions and annuities, and some government payments. It does not include FTB, CRA, or other non-taxable Centrelink supplements. **8-week assessment:** Unlike the annual income test for FTB, the LIHC uses a rolling 8-week period. This means you could earn above the threshold for part of the year and still qualify if your income in the relevant 8-week window is below the limit. This is particularly useful for casual workers with variable income or seasonal workers. **Example:** A single person earns $600 per week during a quiet period. Over 8 weeks, that is $4,800. The 8-week threshold is $5,448 (8 x $681). Since $4,800 is below $5,448, they qualify. If their income picks up to $750 per week, they would lose eligibility at the next 8-week review. There is no assets test for the Low Income Health Care Card.
Benefits of holding a Health Care Card
The Health Care Card provides access to a wide range of concessions across federal, state, and local government programs: **Federal benefits:** - PBS prescription medicines at the concessional rate: currently $7.70 per prescription (compared to $31.60 for general patients). Once you reach the PBS Safety Net threshold ($262.80 for concession card holders per calendar year), further prescriptions are free. - Medicare Bulk Billing Incentive: doctors receive a higher bulk billing incentive for treating HCC holders, making it more likely they will bulk bill you. - Cheaper hearing services through the Hearing Services Program. **State government concessions (vary by state but typically include):** - Energy bill concessions: rebates or discounts on electricity and gas bills (e.g., $285/year in NSW, $171.50/year in Victoria). - Water and sewerage concessions in some states. - Public transport concessions: reduced fares on trains, buses, ferries, and trams. - Motor vehicle registration discounts in some states. - Council rate concessions in some local government areas. **Other benefits:** - Some private health insurers offer lower premiums for HCC holders. - Cheaper entry to some government-run parks, museums, and recreational facilities. - Some telecommunications providers offer discounts or hardship plans for concession card holders. - Reduced fees for some educational courses. The value of a Health Care Card varies significantly by state. In NSW, energy, water, and transport concessions can be worth $1,000–$1,500 per year. In Victoria, the concessions package is typically worth $500–$1,000 per year. Combined with PBS savings, a Health Care Card can be worth $2,000–$3,000 per year to someone who uses it fully.
How to apply for a Low Income Health Care Card
You can apply for a Low Income Health Care Card online through myGov linked to Centrelink, by phone, or at a service centre. **Online application:** 1. Sign into myGov and go to your Centrelink account. 2. Select 'Make a claim' > 'Concession cards'. 3. Select 'Low Income Health Care Card'. 4. Provide details of your income for the past 8 weeks, including payslips, bank statements showing interest income, and any other income evidence. 5. Submit the claim. **What you need:** - Proof of identity (if not already verified with Centrelink) - Income evidence for the past 8 weeks: payslips, income statements, bank statements - Your partner's income details (if applicable) - Your tax file number (and your partner's, if applicable) **Processing time:** LIHC claims are typically processed within 2–4 weeks. The card is valid for one year from the date of issue and must be renewed annually. **Renewal:** Centrelink will send you a renewal notice before your card expires. You will need to provide updated income information. If your income has changed and now exceeds the threshold, your card will not be renewed. **Tip:** If you are between jobs, on unpaid leave, or have had a temporary income reduction, apply immediately — the 8-week assessment period means a short period of lower income can qualify you. The card remains valid for 12 months even if your income subsequently increases. **If you already receive a Centrelink payment:** You do not need to apply for the LIHC — you already have an automatic Health Care Card. The LIHC is specifically for people who do not receive a qualifying Centrelink payment but have low income.
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General information and estimates only — not financial, tax, or legal advice. Always verify with Services Australia.
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