Pension Loan Scheme


The Pension Loan Scheme (PLS) is a reverse mortgage type incentive provided by Services Australia-Centrelink.

The Pension Loans Scheme is available to those who have reached age pension qualification age and are either receiving or eligible to receive a qualifying pension from Services Australia being the Age Pension, Carers Pension or Disability Support Pension and own real estate in Australia. This means that Self-Funded retirees, who meet the criteria to apply for an Age Pension, but whose income and assets preclude the payment of such a pension, CAN qualify to apply.
Under this scheme, a recipient can nominate to receive a fortnightly top up to their ordinary pension payment of up to 150% of their fortnightly rate of pension (including the pension and energy supplements, and Rent Assistance, where applicable). Recipients of the full pension and SelfFunded retirees can apply for the full amount of $1,429.05 per fortnight (single) or $1,077.15 per fortnight (each member of a couple), which is equivalent to 150% of the maximum rate of age pension of $952.70 per fortnight (singles) or $718.10 per fortnight (each member of a couple).
The payments accrue as a debt secured against the real estate. The debt accrues interest at a prescribed rate of 4.5% and the debt can be repaid at any time but is generally either repaid upon the sale of the property or recovered from one’s estate.
The maximum loan amount is calculated based on one’s age and the security for the loan. In a couple, the partner with the youngest age will be used.