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 part-rate pensioners and some self-funded retirees who own real estate in Australia, and who are not entitled to a maximum rate of pension, or any pension, because of their income or assets (but not both).

Under the scheme, a person who is of Age Pension age, or the partner of someone who is, may be able to obtain a loan that will increase their fortnightly pension payment from a part-rate or nil rate, up to the maximum pension rate.

Repayments can be made at any time or the debt can be left, including the accrued interest, to be recovered from the person's estate. The loan is secured against the value of any Australian real estate they own.

Compounding interest is charged on the balance of the loan and calculated on a fortnightly basis.  The interest charged increases the repayment amount.

Further information

For further information about the Pension Loans Scheme, please contact the Department of Human Services on 13 2300 online Pension Loans Scheme.

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