Nominated loan amount

You can choose the amount of the loan you get each fortnight. This amount can be up to 1.5 times the maximum pension payment rate you qualify for.

When nominating a fortnightly loan amount, you can either choose:

  • a fixed amount
  • a percentage up to 150% of your maximum pension rate.

Example of nominating a fortnightly loan amount

Joseph gets the Age Pension. For this example, the maximum Age Pension rate is $926 per fortnight. Under the Pension Loans Scheme (PLS) Joseph can get 1.5 times 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.

For this example, let’s assume Joseph gets the maximum rate of Age Pension. He nominates a fixed amount of $500. This amount plus his Age Pension payment exceeds the maximum amount he can get of $1,389 each fortnight. This means he can get $463 as a loan payment instead of $500. We get this by subtracting the Age Pension rate he’s paid from the maximum PLS amount he can get. That is, $1,389 minus $926. 

If Joseph had a reduced Age Pension rate of $300, the maximum amount he can get is still $1,389. This means we can increase his PLS payment to his nominated amount of $500. This means Joseph gets $800 per fortnight.

If Joseph chooses a percentage of the maximum Age Pension rate, his fortnightly payment amount won’t change. Even if his rate of Age Pension changes, the fortnightly amount he gets won’t. This is because the loan payments will adjust to keep the total amount per fortnight at the fixed percentage of the maximum rate.

For instance, if he chooses 150% this means that Joseph will always get $1,389 even if his payment rate changes. If he is getting the maximum rate of $926, his fortnightly payment will increase to $1,389. If his pension payment drops to $300 he will continue to get $1,389. His loan payment rate will adjust so that he continues to get 1.5 times the maximum pension rate.

Maximum rate of pension

The maximum pension rate includes supplements paid with the pension, for example:

  • Pension Supplement
  • Energy Supplement
  • any Rent Assistance you may be eligible for.

If you have specified a fortnightly loan amount, you can change this amount at any time.

You can make a request to change your fortnightly loan amount in writing. You and any other people, trusts or companies who have ownership in the property must sign it.  

If you’re a member of a couple, your partner must sign the request even if they don’t own the property.

Example of maximum rate for pension

Each fortnight Claudia gets the maximum payment rate of Disability Support Pension (DSP). Claudia applies for PLS and we assessed her as eligible. Under the PLS, she can get up to 50% of her DSP as a loan. This is on top of her current DSP. She can’t get more because she is already on the maximum rate.

If Claudia got less than the maximum DSP payment rate, she could borrow more. She could get an amount that brings her up to 150% of the maximum rate. She can’t exceed 150% of the maximum rate with the loan and pension combined.

Example of maximum rate if you don’t get a pension

Terry qualifies for Age Pension but as his income or assets are too high, he can’t get a payment. Terry applies for the Pension Loans Scheme and we assess him as eligible. He can get a loan amount of up to 1.5 times the maximum rate of Age Pension per fortnight. Terry chooses to get a fortnightly loan payment of the maximum rate of Age Pension.

Page last updated: 23 January 2020