Introducing our Pension Loans Scheme calculator

28 August 2021

Use this tool to check if you can get a loan, and estimate your loan balance based on your circumstances.

The Pension Loans Scheme is a voluntary and non-taxable loan that can supplement your retirement income. We pay it each fortnight if you are eligible.

Eligibility and the amount of loan you can get depends on all the following:

  • your eligibility for pension
  • your age
  • how much equity you have in Australian real estate.

Your combined loan and pension payment each fortnight can’t exceed 150%. This is 1.5 times your maximum pension rate.

Your loan payments will automatically adjust to not go over the 150% if your pension changes. If you don’t get any pension, you can get up to the maximum amount as a loan payment.

Check that you meet all the rules to be eligible before you start your application.

You can apply for the Pension Loans Scheme online with a Centrelink online account through myGov.

Pension Loans Scheme Calculator

We have a Pension Loans Scheme calculator that can help you work out if you might be eligible for a loan.

If you log onto your myGov account, the calculator can:

  • provide an estimate based on information already provided to Centrelink
  • compare your existing loan amount and any changes you make.

You can still access the calculator without using myGov. However, the calculator in myGov will estimate up to the maximum loan amounts you can borrow.

Repaying your loan

You must repay your loan under the Pension Loans Scheme to the Commonwealth Government. You don’t need to pay straight away.

If you sell the real estate in Australia that you used as security for the loan, you can either:

  • transfer the loan to another property
  • repay the loan on the date of settlement.

We would recover any outstanding loan amount from your estate. We charge 4.5% compound interest per annum. Compound interest increases the amount you must repay. We charge the interest on the balance of the loan each fortnight.

Next steps

Always get advice from a financial advisor or lawyer before making any decisions about the Pension Loans Scheme. This includes if you’re currently in the Pension Loans Scheme and you’d like to increase the loan amount you get.

Find out more about the Pension Loans Scheme.

Page last updated: 30 August 2021