Pension Loans Scheme 

The Pension Loans Scheme is a voluntary arrangement, which provides support in the form of a loan paid in regular fortnightly instalments, for a short or indefinite period.

The Pension Loans Scheme is available to people who meet Age Pension age and residency requirements and own real estate in Australia.  Under this scheme, a person of Age Pension age (or their partner) can nominate to receive a total amount of fortnightly pension plus PLS loan of up to 150 per cent of the maximum fortnightly rate of Age Pension (including the pension and energy supplements, and Rent Assistance, where applicable).  Self-funded retirees can get the whole 150 per cent of pension as a loan. 

The payments accrue as a debt secured against real estate owned by the person.  The debt accrues interest.  Safeguards ensure the amount of the maximum loan that a person can borrow is limited. PLS debts can be repaid at any time, but are generally either repaid if the property securing the loan is sold, or recovered from the person’s estate. The scheme is voluntary and borrowing can be stopped at any time.

Further information

For further information about the Pension Loans Scheme, please contact Services Australia on 13 2300 or online at Pension Loans Scheme.

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