Choosing your loan amount
You can choose the amount of the loan you get each fortnight. This amount can be up to 150% of the maximum pension payment rate you qualify for.
You can choose to get your loan payment each fortnight at one of these 3 loan rates:
- the maximum amount which is 150% of the maximum pension rate each fortnight
- a smaller percentage
- a set loan amount that you choose.
Unless you get a set loan amount, we’ll automatically adjust how much you get whenever your pension amount changes.
Whatever you choose, your combined pension and loan payment can’t be more than 150% of the maximum pension rate.
In these examples the maximum Age Pension rate is $926 per fortnight.
Maximum Age Pension rate
Joseph gets the maximum rate of Age Pension. Under the Pension Loans Scheme (PLS) Joseph can get 150% (1.5 times) of this amount. This is $1,389, which is $926 multiplied by 1.5. That means the maximum amount of payment he can get per fortnight, including his loan and Age Pension, is $1,389.
He asks for a fixed loan amount of $500 a fortnight. This amount, plus his Age Pension payment of $926 equals $1,426. This is more than the maximum amount he can get of $1,389 each fortnight.
This means the maximum loan amount Joseph can get is $463. That’s the maximum amount of $1,389 minus his Age Pension rate of $926.
Part rate of Age Pension
Joan gets a part Age Pension rate of $300. Under the PLS, Joan can get 150% (1.5 times) of the maximum Age Pension rate. That’s $926 multiplied by 1.5. The maximum amount of payment she can get per fortnight, including her loan and Age Pension, is $1,389.
Joan chooses a fixed loan amount of $400 a fortnight. This amount, plus her Age Pension payment of $300, equals $700 per fortnight. Because this is less than the maximum she qualifies for, Joan can get the $400 loan amount she chose. In total, she’ll get $700 per fortnight of combined Age Pension and loan.
A percentage of the maximum Age Pension rate
Chris gets Age Pension. He chooses to get 50% of the maximum Age Pension rate as his loan amount each fortnight.
50% of $926 is $463. His combined pension and loan amount won’t go below $463. Even if his rate of Age Pension changes, the amount Chris gets each fortnight won’t drop below that percentage. This is because we’ll adjust the loan payments to keep the total at the fixed 50% of the maximum rate.
If Chris’s pension payment goes above $463, we’ll stop paying the loan until it goes below that again.
Page last updated: 5 July 2021
This information was printed 29 July 2021 from https://www.servicesaustralia.gov.au/individuals/services/centrelink/pension-loans-scheme/how-much-you-can-get/choosing-your-loan-amount. 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.