Pension Loans Scheme

Pension Loans Scheme can help you if your capital is tied up in assets and you need more income to live on.

If you are retired and of age pension age but are ineligible for Age Pension, or receive a reduced pension rate, due to assets or income, you can  access capital tied up in your assets to provide extra income.

The Pension Loans Scheme is a voluntary arrangement which provides support in the form of a loan for a short time or an indefinite period. It is paid in regular fortnightly instalments. You can nominate an amount up to the maximum Age Pension payment.

You may be eligible for a loan under the Pension Loans Scheme if:

• you or your partner are of Age Pension age
• you have real estate in Australia to use as security for the loan
• you or your partner receive a part Age Pension, or you would receive a part Age Pension but your rate is reduced to nil because of either the income or the assets test (but not both), and
• you are not receiving a reduced rate of pension solely because of a direct deduction
• you meet Age Pension residency requirements

You can only use real estate owned in Australia, for example your home, as security for the loan.

The Pension Loan Scheme is not available if you receive the maximum rate of Age Pension.