Mitch Fifield (Victoria, Liberal Party, Assistant Minister for Social Services) Share this | Hansard source

I thank colleagues for their contribution to the debate. This is a fairly straightforward piece of legislation. The primary purpose of the bill is to honour and give effect to an election commitment by the coalition—that being, to index income thresholds for the Commonwealth seniors health card. As colleagues know, the seniors health card is available to self-funded retirees—people who are of age pension age but who do not qualify for the age pension.

A person must satisfy the seniors health card taxable income test to qualify for the seniors health card. To satisfy that test, the person's adjusted taxable income must not exceed the taxable income limit that applies to the person's family situation. At present, those income limits are set at $50,000 for singles and $80,000 for couples. I think it is important to note and underline that these taxable income limits are not indexed, and that they have been at these levels since 2001. After the taxable income limits are indexed by this bill, more people will satisfy the seniors health card taxable income test and, therefore, qualify for the seniors health card. More people will get to keep their card despite small increases in their income beyond the current limits. This means that more seniors will be able to access the concessions that come with the card, including medicines listed in the Pharmaceutical Benefits Scheme at the concessional rate.

The income limits will be indexed annually, starting on 20 September 2014, and will be based on movements in the consumer price index. This measure applies to the seniors health card under either the Social Security Act 1991 or the Veterans' Entitlement Act 1986. As colleagues in their contributions have indicated, the bill will also make some minor and technical amendments. These are mainly to reflect the recently changed Public Service administrative arrangements. I commend the bill to my colleagues.

Question agreed to.

Bill read a second time.