Pension Loans Scheme

Australian Government Department of Human Services: Pension Loans Scheme

The Pension Loans Scheme (PLS) is a Federal Government scheme which allows Australians pensioners to receive a fortnightly income stream (tax free) by taking out a loan against the equity in their home.

Administered by the Department of Human Services, the scheme allows you to borrow up to 1.5 times of the maximum Age Pension which will be paid in fortnightly installments. It is not available as a lump sum.

To qualify for the PLS you must be:

  • Of Age Pension age;
  • Receive / or be eligible for an Age Pension (or other government pension);
  • Own real estate in Australia that can be used as security for the loan;
  • Have adequate and appropriate insurance covering the real estate offered as security; and
  • Are not bankrupt or subject to personal insolvency agreement.

Originally introduced in 1985, the scheme was significantly expanded in July 2019 with the aim of encouraging more Australians to take advantage of this underutilised service.

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