Danny asks:

I am a self-funded retiree and draw an allocated pension from my super fund and currently have a Low Income Health Care Card. Am I going to lose this from January 1 under the new Centrelink rules?

Olivia says:

Changes are certainly coming and from January 1 and the way income from superannuation pensions is means tested will change. The result could be that many Low Income Health Care Cards will be cancelled in the coming week.

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The changes

Currently, the full value of an account-based superannuation pension or commonly referred to as an allocated pension, is not counted towards the income test to determine eligibility for the Low Income Health Care Card. The amount received is concessionally assessed and is reduced by a deductible amount based on the member's life expectancy.

By comparison, other financial assets such as bank accounts and shares are 'deemed' to earn a certain amount of income that is assessed under the income test, regardless of how much they have actually earned.

But from January 1, 2015 income from account-based superannuation pensions will also be deemed, putting it on a level footing with assets held outside of super.

Unfortunately, this means that many will lose their Low Income Health Care Card and will be advised of this from Centrelink directly in the coming week.

See the article here:

Low Income Health Care Card changes from January 1, 2015