'Compelling case' to split age pensions from Commonwealth health: Hockey

Australian Treasurer Joe Hockey believes there is a “compelling case” to split age pensions from access to Commonwealth health cards.

As the treasurer heads to Washington for a series of finance meetings, he told the Financial Review he was concerned that many higher income earners were arranging their financial affairs to ensure they were still eligible for health concession cards, that allowed them access to a range of medical discounts.

Mr Hockey has also flagged far-reaching reviews of how pensions are handled, but dismissed concerns about any “piecemeal” fiddling with the system.

“We are contemplating having a broad review of the entire retirement income and retirement planning system, so that there could be greater stability over the medium term in public policy and give people greater certainty,” he told the AFR.

A pensioner is eligible for a senior’s health card if they earn under $51,000PA. For couples, the limit is $82,000.

If eligible, pensioners receive discounts on medication, cheaper out of hospital medical expenses and their appointments with doctors are bulk-billed.

The Opposition has attacked the government, warning Mr Abbott to avoid reducing access to affordable medication.

“There’s only one thing certain about pensions,” Opposition Leader Bill Shorten said.

“The Abbot Liberal Government wants to cut the pension.”

Senior groups have so far welcomed any proposed review.