How Much Benefit Does the Low Income Health Care Card Provide in Victoria?
For many Australians, the Age Pension is valued not only for the fortnightly payment but also for the range of concessions available through the Pensioner Concession Card (PCC). In some cases, these ancillary benefits can be almost as valuable as the pension itself. As a result, many retirees are keen to maintain Age Pension eligibility, even when the pension payment is relatively small.
However, circumstances can change. Events such as downsizing the family home, receiving an inheritance, or other financial changes may result in the loss of Age Pension eligibility.
What many people don’t realise is that the Low Income Health Care Card (LIHCC) can provide a valuable alternative. While it does not offer all the same benefits as the PCC, it can still provide access to a range of concessions and discounts.
In this article, we explore the benefits available through the LIHCC and estimate their potential dollar value, helping to demonstrate the card’s importance as a backup option for retirees who no longer qualify for the Age Pension.
Australia-wide Benefits
1. Cheaper Medicines via the Pharmaceutical Benefits Scheme (PBS)
Cardholders pay a maximum PBS concessional prescription price of $7.70 per eligible medication, compared with up to $25 for general patients. Once the PBS Safety Net threshold is reached, eligible medicines become free for concession card holders for the remainder of the calendar year.
This is the same pharmaceutical benefit available to holders of the PCC.
It’s hard to quantify the dollar value of this concession because health and medical requirements vary from person to person. However, based on the average retiree, this benefit is at least $1,000pa, often much more as we get older and health begins to deteriorate.
2. Greater Access to Bulk Billing
Doctors receive higher Medicare incentives for treating concession card holders, which may increase the likelihood of being bulk billed.
3. Australia Post Discounts
Eligible cardholders may receive discounts on selected Australia Post services, including mail redirection and document certification.
Victoria-Specific Benefits
Victoria provides some of the strongest state-based concessions in Australia. Key Victorian concessions available to LIHCC holders include:
Energy Bill Discounts
Eligible cardholders can receive significant concessions on both electricity and gas bills.
For electricity, a 17.5% discount applies to all usage and service costs above $171.60. Households with annual electricity costs exceeding $3,895 may also be eligible to apply for the Excess Energy Concession.
For gas, LIHCC holders receive the Winter Gas Concession, which provides a 17.5% discount on gas usage and service costs between 1 May and 31 October. The concession applies to costs above $62.40.
Because these concessions are percentage-based, the dollar value of the benefit increases as energy prices rise.
Based on average energy usage among retired Victorians, annual savings may exceed:
- Electricity: approximately $400*
- Gas: approximately $175*
* Based on research conducted by Challenger Australia
Water Concessions
A concession is available on water and sewerage charges, potentially saving eligible households more than $300 per year*.
This concession provides a 50% reduction in water and sewerage charges, up to a maximum annual benefit of $372.10.
* Based on research conducted by Challenger Australia
Vehicle Registration Discounts
Eligible cardholders can access a 50% discount on their car registration fee (1 per card holder). However, no discount applies to the Transport Accident Charge (TAC) component.
The standard vehicle registration fee in Victoria is typically just under $350, resulting in a saving of approximately $175. As registration fees vary depending on vehicle type, this figure should be considered an estimate only.
Healthcare Concessions
Victorian concession card holders may also qualify for:
- Reduced-cost dental services
- Subsidised vision care
- Low-cost glasses through the Victorian Eyecare Service
- Other health-related concessions and assistance programs
What Is the Total Value?
When these concessions are combined, we estimate that the average Victorian LIHCC holder may receive benefits worth between $1,500 and $2,000 per year, often much more for those with significant medical needs.
While the most obvious benefits come from discounts on utilities, water, vehicle registration, and healthcare services, the greatest value is often realised through access to cheaper prescription medicines, particularly for those taking multiple medications.
For more information on the LIHCC and to understand your eligibility, please contact our office on 03 5224 2700.
To better understand what benefits the LIHCC and other concession cards can provide you, we encourage you to browse the Victorian Government resources at: