The Home Equity Access Scheme (formerly known as the Pension Loans Scheme) provides older Australians with the opportunity to access funds by leveraging their real estate assets.
Managed by Services Australia, this voluntary program is designed to support retirees and older citizens with financial flexibility, offering both fortnightly payments and lump-sum advance payments. For couples, the maximum advance payment under this scheme in 2024 is $21,876.
Here’s an in-depth look at eligibility, payment details, and how to benefit from the scheme.
What Is the Home Equity Access Scheme?
The Home Equity Access Scheme allows older Australians to:
- Access equity in their real estate assets, including homes.
- Receive non-taxable payments either as fortnightly income or as a lump-sum advance.
- Participate voluntarily without mandatory loan repayments during the loan period.
The scheme provides financial flexibility by supplementing retirement income while maintaining ownership of the property. The debt is repaid from the proceeds of the property’s sale or from the estate.
| Feature | Details |
|---|---|
| Program Name | Home Equity Access Scheme |
| Administered By | Services Australia |
| Benefit Amount | Up to $21,876 for couples (lump sum) |
| Frequency | Fortnightly payments or lump-sum advance |
| Eligibility | Pensioners and non-pensioners meeting criteria |
Eligibility for Home Equity Access Scheme
To qualify for the scheme, individuals must meet the following criteria:
Age and Pension Requirements
- Must be of Age Pension age (currently 66+ and increasing based on birthdate).
- Eligible for Age Pension, Carer Payment, or Disability Support Pension.
Property Ownership
- Must own real estate in Australia to serve as collateral for the loan.
Insurance and Financial Status
- Adequate insurance coverage for secured assets is required.
- Claimants must not be bankrupt or insolvent.
Residency
- Must be an Australian resident or citizen.
Payment Rates and Maximum Loan Amounts
The maximum combined pension and loan amount is capped at 150% of the Age Pension rate. Here’s a breakdown:
| Marital Status | Maximum Pension Rate | 150% Maximum Pension (Loan + Pension) |
|---|---|---|
| Single | $1,116.30 | $1,674.45 |
| Partnered | $841.40 | $1,262.10 |
| Couples Combined | $1,682.80 | $2,524.20 |
Advance Payment Amounts for 2024
| Marital Status | Advance Payment |
|---|---|
| Single | $14,511.90 |
| Partnered | $10,938.20 |
| Couples Combined | $21,876.40 |
How Payments Work
Fortnightly Payments
Participants can opt for regular fortnightly payments to supplement their income, calculated as a percentage of the Age Pension.
Lump-Sum Advance Payments
Couples can receive up to $21,876 in 2024 as a one-time advance, while singles can receive $14,511.90.
Repayment Details
- Loan repayments are not required during the loan period.
- The loan is recovered upon the sale of the property or from the estate after death.
- Interest accrues on the loan balance.
How to Apply
Applying for the Home Equity Access Scheme is straightforward:
- Visit Services Australia Website
Access the Home Equity Access section on the official Services Australia website. - Create or Log in to MyGov
Use your MyGov account linked to Centrelink to initiate the application process. - Provide Required Information
Include details about your property, assets, and income. - Submit Documentation
Attach necessary documents, such as:- Proof of identity (e.g., passport, driver’s license).
- Property ownership documents.
- Insurance details for the secured property.
- Await Approval
Services Australia will notify you about the outcome of your application.
Advantages of the Scheme
- Flexible Income Options: Choose between fortnightly payments or a lump sum.
- No Negative Equity: Participants won’t owe more than the value of their property.
- Voluntary Participation: Opt-in without mandatory repayments during the loan period.
- Non-Taxable Payments: Payments are exempt from income tax.
The Home Equity Access Scheme provides much-needed financial relief for retirees, allowing them to access the value of their real estate assets without selling their homes. With the option of a lump sum of up to $21,876 for couples or fortnightly payments, the scheme supports higher living standards during retirement.
Eligible individuals should evaluate their needs, ensure they meet the requirements, and apply through Services Australia to take advantage of this initiative.
