Low Income Health Care Card: Benefits and Eligibility
What the Low Income Health Care Card gives you in Australia: cheaper PBS medicines, bulk billing and state concessions, who qualifies, and how to claim.
By Timothy Hirou GaschereauPublished 10 min read
The Low Income Health Care Card is one of the most useful concession cards going, and one plenty of eligible Australians never claim. It is based on your income alone (no assets test), and it quietly knocks a big chunk off the cost of medicines, GP visits and a pile of state concessions.
Here is who qualifies, what it actually gets you, and how to claim. General information only, not advice, and thresholds and concessions are indexed and vary by state, so confirm the current detail with Services Australia and your state government.
🎯 The essential: The Low Income Health Care Card is income-tested only (no assets test) and cuts PBS scripts to $7.70 (versus up to $31.60), with free medicines once you hit the annual Safety Net. It also unlocks bulk billing incentives and a range of state concessions on energy, rates and transport. There are two Health Care Cards: one you apply for (income-based) and one that comes automatically with payments like JobSeeker or Parenting Payment. It lasts 12 months and must be renewed.
What a Health Care Card is
A Health Care Card is a Centrelink concession card that makes staying healthy cheaper: cheaper PBS medicines, better bulk billing access, and a range of state and territory discounts. It is not a replacement for Medicare (it sits on top), and it is not private health insurance. What it does is cut the everyday cost of medicines and GP visits, which adds up fast if you fill scripts regularly.
The two types of Health Care Card
The one you apply for: the Low Income Health Care Card, granted on your gross income over the 8 weeks before you claim. No assets test. This is the card most people are searching for.
The one you get automatically: if you already receive certain payments (JobSeeker, Youth Allowance for job seekers, Parenting Payment single, Austudy, or Family Tax Benefit Part A at the max rate), a Health Care Card is issued automatically. Check your myGov, it may already be there.
Who is eligible (the income test)
Centrelink looks at your gross income over the 8 weeks before you claim. The approximate 2025-26 limits (indexed, confirm with Services Australia):
| Situation | 8-week gross income limit (approx) |
|---|---|
| Single, no children | $783 |
| Single, 1-2 children | $1,101 |
| Couple combined, no children | $1,101 |
| Couple combined, 1-2 children | $1,419 |
| Each extra child | add ~$318 |
There is no assets test, and a higher retention threshold applies once you hold the card, so a small pay rise will not immediately cost it. You generally need to be 19+ (or independent) and an Australian resident in Australia.
What the card actually unlocks
Cheaper medicines is the headline: card holders pay the concessional PBS co-payment of about $7.70 a script, versus up to $31.60 without it.
Beyond medicines, the card also unlocks:
- PBS Safety Net: once your PBS spending hits about $348 in a calendar year, further scripts are free.
- Bulk billing incentive: GPs get a higher rebate for bulk billing card holders, improving your odds of a no-gap visit.
- Ambulance cover is free for card holders in QLD and TAS (other states differ).
- State and territory concessions on energy, water, council rates, public transport and car rego (varies by state, use the Services Australia Concession Finder). This ties directly into our energy rebates guide.
How it compares to other concession cards
| Low Income HCC | Pensioner Concession Card | Seniors Health Card | |
|---|---|---|---|
| Who gets it | Low-income (any age 19+) | Age Pension / DSP recipients | Self-funded retirees at Age Pension age |
| How | Apply (income) | Automatic with payment | Apply (income + age) |
| Cheaper PBS medicines | Yes | Yes | Yes |
| State concessions | Yes (varies) | Broadest | Limited (varies) |
| Assets test | No | Yes | No |
The Pensioner Concession Card is the most generous but only comes with the Age Pension or DSP. The Commonwealth Seniors Health Card is for self-funded retirees. The Low Income Health Care Card is the most accessible for working-age Australians.
How long it lasts
The Low Income Health Care Card is issued for 12 months and must be renewed, with Centrelink reassessing your income at renewal. The automatic card lasts as long as you keep receiving the qualifying payment.
How to claim
Set up myGov and link Centrelink, then lodge a claim online (or in person). Have your income details for the past 8 weeks ready (payslips, bank records). Once approved, the card appears in myGov and a physical card is posted out. Claim as soon as you think you qualify: there is no backdating, so waiting costs you benefits. If you also receive JobSeeker or Parenting Payment, you likely have the automatic card already.
❓ Frequently asked questions
Does the Health Care Card replace Medicare?
+
No. It works alongside Medicare. Medicare covers your basic medical costs; the Health Care Card adds concessions on top, including cheaper PBS medicines and better bulk billing access.
Can I get a Health Care Card if I am working?
+
Yes. The Low Income Health Care Card is designed for people working on a modest income. It is based on your income level, not your employment status, so casual, part-time and self-employed people can all qualify.
Does the Health Care Card affect my tax?
+
No. Holding the card does not affect your tax return or taxable income. It is a concession card, not a payment.
What happens if my income goes up?
+
There is a higher retention threshold to keep the card once you have it, so a small rise will not cost you the card. A large rise can, and you should report income changes to Centrelink to avoid an overpayment debt.
Is there an assets test for the Low Income Health Care Card?
+
No. There is no assets test. Centrelink only looks at your gross income over the 8 weeks before you claim. You could have savings or investments and still qualify if your income is low enough.
Can my family members use my Health Care Card?
+
Your card covers you and any dependants listed on it, and each listed person gets their own card in their own name. Your partner and children can be included if they meet the criteria.
Keep reading
📚 Recommended reading
The Barefoot Investor
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The Barefoot Investor
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Australia's best-selling money book ever. A simple system for accounts, budgeting, debt and a real emergency fund in one.
Making Money Made Simple
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Making Money Made Simple
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Australia's classic, comprehensive money guide covering tax, super and investing, updated for today.
Money School
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Money School
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Some links above are affiliate links. If you buy through them, Snowball Invest may earn a small commission at no extra cost to you. We only recommend books we'd suggest anyway.
Sources
This article is general information only, not financial or government advice. Thresholds, PBS co-payments and state concessions are indexed and change, and concessions vary by state. Check Services Australia and your state government for current detail.
Was this article useful?
General information only. This article is educational and does not constitute personal financial advice. It does not account for your circumstances. Consider your own situation and seek advice from a licensed adviser before acting. Read our full disclaimer.
Timothy Hirou Gaschereau
Founder of Snowball Invest, not a financial adviser.
I write about what I'm learning myself, because nobody ever taught us how to take control of our own money. It's a skill, not a mystery, and it's never too late to learn it. The best day to start was yesterday, the second best is today.
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