Low Income Health Card: Save $1,000+/yr

The Low Income Health Care Card (LIC) is available to Australian residents who earn below certain income thresholds. Unlike most Centrelink cards, you don't need to be receiving a payment to get one — you just need to have low income.

To qualify, you must be an Australian resident living in Australia, aged 19 or over (or independent if under 19), and not already holding another concession card (like a Pensioner Concession Card or Health Care Card from a Centrelink payment). If you're already getting JobSeeker, Youth Allowance, or another income support payment, you automatically get a Health Care Card — the LIC is for people who aren't on a payment but still have low income.

Common applicants include part-time workers, casual employees, self-employed people with variable income, semi-retired people drawing a small super pension, carers who don't qualify for Carer Payment, and people between jobs who haven't applied for JobSeeker.

The card is reassessed every 8 weeks based on your recent income. If your income spikes for a couple of fortnights (say you pick up extra shifts), you might temporarily lose eligibility — but you'll get it back when your income drops again. It's a rolling assessment, not an annual one.

The income limits for the Low Income Health Care Card are assessed on your gross income over the 8 weeks immediately before you claim (or before each 8-week reassessment). Here are the 2026 weekly thresholds:

• Single, no children: $681/week ($35,412/year)
• Single, with 1 child: $934/week
• Couple, no children: $1,165/week combined ($60,580/year)
• Couple, with 1 child: $1,253/week combined
• Each additional child: add $88/week

Income includes wages, business income, investment income (interest, dividends, rent), overseas income, and some government payments. However, some types of income are excluded: Family Tax Benefit, Child Care Subsidy, most one-off crisis payments, and certain scholarships.

There's no assets test for the LIC. You could have $500,000 in the bank — as long as your income stays below the threshold, you qualify. This makes it particularly useful for people who have savings but low regular income.

If you're self-employed, your income is assessed as your gross business income minus allowable business deductions over the 8-week period. Keep your records tidy, because Services Australia may ask for proof.

The biggest immediate saving is on prescription medications. With the LIC, you pay the PBS concession rate of $7.70 per script instead of the general rate of $31.60. That's a saving of $23.90 per prescription.

If you take just two regular medications, that's a saving of $47.80 per month or $574 per year. Many people on 4–5 medications save well over $1,000 per year on PBS alone.

Once your PBS costs exceed the concession safety net threshold (about 60 scripts per year), all further scripts are free for the rest of the calendar year. Without the card, the general safety net is much higher before kicking in.

For Medicare, the LIC gets you the lower Medicare Safety Net threshold of $801.20 (compared to $2,544.30 for the general population). Once your out-of-pocket Medicare expenses exceed this amount, Medicare pays 80% of any further out-of-pocket costs for the rest of the year.

GPs also receive a higher bulk billing incentive for seeing concession card holders, which means you're more likely to find a GP who will bulk bill you. In areas where bulk billing is scarce, this can make a real difference. Use our Low Income Health Care Card calculator to check your eligibility.

Beyond the Commonwealth benefits, the LIC unlocks a stack of state and territory concessions that vary depending on where you live:

NSW: Energy rebates up to $285/year, reduced water rates, discounted public transport (half-price Opal fares), ambulance cover, and council rate reductions in many local government areas.

Victoria: $250 Power Saving Bonus (when available), reduced water and sewerage rates, free or discounted public transport on weekends and holidays, and school-related concessions for children.

Queensland: Electricity rebate of $372/year, reticulated natural gas rebate, 50% off vehicle registration, and discounted public transport with a go card.

South Australia: Cost of living concession of $249/year, water and sewerage concessions, reduced council rates, and emergency electricity payment assistance.

Western Australia: Energy Assistance Payment of $171/year, water concessions, reduced local government rates, and discounted public transport via SmartRider.

Tasmania: Electricity concession of $250/year, water and sewerage concessions, and council rate remissions.

Many states also offer free or discounted ambulance services to concession card holders — worth potentially thousands of dollars if you ever need an ambulance and don't have private health cover.

You can apply online through myGov linked to Centrelink. Here's the process:

1. Sign into myGov and go to your Centrelink account. If you don't have a Centrelink Customer Reference Number (CRN), you'll need to register first.
2. Go to "Make a claim" > Concession cards > Low Income Health Care Card.
3. Provide your income details for the last 8 weeks. You'll need payslips, bank statements showing interest income, or business records if you're self-employed. Include your partner's income if applicable.
4. Submit your Tax File Number and any supporting documents requested.

Processing typically takes 5 to 14 business days. Once approved, you'll receive a physical card in the mail and a digital version in your myGov app. The card is valid for 12 months but reassessed every 8 weeks.

If your claim is rejected, check whether your income was temporarily high in the 8-week assessment period. You can reapply immediately once your income drops back below the threshold. There's no limit on how many times you can apply.

One tip: if you're about to start a new low-paying job after a period of higher income, wait until you've had 8 weeks of low income before applying. The assessment looks backwards, not forwards. Check your eligibility first with our Low Income Health Care Card calculator, and see if you might also qualify for JobSeeker Payment or Rent Assistance.