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.
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.
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
This information was printed 13 October 2021 from https://www.servicesaustralia.gov.au/individuals/news/introducing-our-pension-loans-scheme-calculator. It may not include all of the relevant information on this topic. Please consider any relevant site notices at https://www.servicesaustralia.gov.au/individuals/site-notices when using this material.