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Home Equity Access Scheme (HEAS) 065-08000000



Compound interest calculation

  • Compound interest:
    • automatically calculates in the customer’s regular fortnightly automatic review
    • calculates each day, based on the balance ((Principal + Interest from the last entitlement period) + Costs) on the day
  • Interest compounds at the end of the entitlement period, and adds to the interest balance at the end of the entitlement period calculation
  • HEAS advances are added to the Principal, and accrue interest from the Date of Event they are delivered
  • Repayments reduce the balance, and interest is adjusted from the day they are allocated to the legacy system
  • Payments made via the Payment Adjustment (PYAJ) screen and/or arrears payments are added to the Principal at the end of the entitlement period. Interest accrues from the end of the entitlement period

Calculation

  • Add the accrued Principal, Interest and Costs
  • Less repayments made
  • Multiply by the interest rate, and
  • Divide by 364

Interest for a Day = (Principal + Costs + Interest) – Repayments) x Interest Rate/364

Interest calculates using the previous Entitlement Period End Dates (EPED) balance for first 13 days. Then adding the fortnightly payment on day 14 of the EPED to complete the fortnight’s interest calculation. If there is no fortnightly loan (LON) component, each day calculates based on the previous balance. The interest is added to the total loan balance on a fortnightly basis..

Process Direct screens

Staff can action and view the HEAS details in Process Direct.

Table 1

Screen name

Description

Home Equity Access Scheme Summary (HEASS)

  • Go to the HEASS screen
  • Use More info on the HEASS screen to see the current and historical payment details:
    • Date of Event
    • Loan Number
    • Principal Amount
    • Interest
    • Costs
    • Loan Balance (Total)
  • Select Edit to go to the Home Equity Access Scheme HEAS screen to see and/or update the:
    • Date of Effect
    • Loan Top Up Type
    • Loan Security Value
    • Nominated Amount
    • Current Balance
    • Interest Rate
    • Percentage
    • Maximum Loan Amount
    • Deductions
    • DFISA Customer
    • Ceased Loan Indicator
    • HEAS (PLS) Only Claim
    • Loan top-up amount per FTN
    • Customers advised Maximum Amount
    • Bankruptcy/Insolvency Indicator
    • Adequate Insurance Indicator; and
    • Reject/Cease Reason

Note: staff can only update the most recent HEAS screen. An error message occurs if staff attempt to make historical updates on a previous page. Select Refresh to see the most recent HEAS screen.

The HEAS screen also shows the current:

  • Principal amount
  • Interest amount, and
  • Costs

Home Equity Access Scheme Receipts (HEASR)

The HEASR screen lets staff to search for specific receipts within set periods and shows details about repayments.

  • This screen displays:
    • Payment Reference
    • Repayment Date
    • Amount
    • Payment Method
    • Status

Note: this screen only shows repayments from 1 July 2022.

Home Equity Access Scheme Advance (HEASADV)

The HEASADV screen records customer advance payments.

  • This screen displays:
    • Status of Advance
    • Advance Payment Amount
    • Advance Payment Request ID
    • Loan Link Id
    • Maximum Advance Payment Amount
    • Rejection Reason Code

See Advance payments for Home Equity Access Scheme (HEAS) loans for more details.

Table 2

Scenario

Approval required

Notification

Customer is single and using service for them self only.

No

Customer is partnered and using self service for them self.

Partner has a myGov Inbox.

Yes, partner approval.

  • Online notification sent to partner
  • Partner logs onto their online account and completes the online task
  • Online notification is sent to customer that their partner has completed the task
  • Online transaction sent for processing when all required tasks have been completed

Customer is partnered and using service for them self.

Partner does not have a myGov Inbox.

Yes, partner approval.

  • Letter notification sent to partner
  • Partner gets sent a paper letter and has it upload it by Nominee/ customer/ staff
  • Online notification is sent to customer that their partner has completed the task
  • Online transaction sent for processing when all required tasks have been completed

Nominee is acting on behalf of a customer that is single.

Customer has a myGov Inbox.

Yes, customer approval.

  • Online notification sent to customer
  • Customer logs onto their online account and completes the online task
  • Online notification is sent to nominee that their customer has completed the task
  • Online transaction sent for processing when all required tasks have been completed

Nominee is acting on behalf of a customer that is single.

Customer does not have a myGov Inbox.

Yes, customer approval.

  • Letter notification sent to customer
  • Customer get sent a paper letter and has it upload it by nominee/ staff
  • Online notification is sent to nominee that their customer has completed the task
  • Online transaction sent for processing when all required tasks have been completed

Nominee is acting on behalf of a customer that is partnered.

Customer and partner have a myGov Inbox.

Yes, customer and partner approval.

  • Online notification sent to customer
  • Online notification sent to partner
  • Customer logs onto their online account and completes the online task
  • Partner logs onto their online account and completes the online task
  • Online notification is sent to nominee that their customer has completed the task
  • Online notification is sent to nominee that partner has completed the task
  • Online transaction sent for processing when all required tasks have been completed

Nominee is acting on behalf of a customer that is partnered.

Customer has a myGov Inbox.

Partner does not have a myGov Inbox.

Yes, customer and partner approval.

  • Online notification sent to customer
  • Letter notification sent to partner
  • Customer logs onto their online account and completes the online task
  • Partner is sent a paper letter and has it upload it by Nominee/ customer/ staff
  • Online notification is sent to nominee that their customer has completed the task
  • Online notification is sent to nominee that partner has completed the task
  • Online transaction sent for processing when all required tasks have been completed

Nominee is acting on behalf of a customer that is partnered.

Customer does not have a myGov Inbox.

Partner has a myGov Inbox.

Yes, customer and partner approval.

  • Letter notification sent to customer
  • Online notification sent to partner
  • Customer is sent a paper letter and has it upload it by Nominee/ staff
  • Partner logs onto their online account and completes the online task
  • Online notification is sent to nominee that their customer has completed the task
  • Online notification is sent to nominee that partner has completed the task
  • Online transaction sent for processing when all required tasks have been completed

Nominee is acting on behalf of a customer that is partnered.

Customer does not have a myGov Inbox.

Partner does not have a myGov Inbox.

Yes, customer and partner approval.

  • Letter notification sent to customer
  • Letter notification sent to partner
  • Customer is sent a paper letter and has it upload it by Nominee/ staff
  • Partner is sent a paper letter and has it upload it by Nominee/ customer/ staff
  • Online notification is sent to nominee that their customer has completed the task
  • Online notification is sent to nominee that partner has completed the task
  • Online transaction sent for processing when all required tasks have been completed

Withdrawal of request before approval is completed

No approval required.

Customer or nominee can withdraw their request any time before any approvals are completed.

Withdrawal of request after any approval is completed.

Approval required.

Customers are advised they must complete a Home Equity Access Scheme variation form (SA497), and upload it.

FAQs for staff

Table 3

Item

Description

1

Question: What is HEAS?

Answer: HEAS is a reverse mortgage like loan for older Australians secured against real estate they own in Australia.

The agency places a registered charge or caveat against the property title to protect the Commonwealth’s interest. You need to repay the loan payments received and the costs and compound interest.

See What is the Home Equity Access Scheme for more details.

2

Question: Is the loan available as a lump sum?

Answer: Yes, from 1 July 2022

See What is the Home Equity Access Scheme for more details.

3

Question: Am I eligible for a HEAS loan?

Answer: You may be eligible for a HEAS loan.

See Eligibility for the Home Equity Access Scheme (HEAS) for more details.

4

Question: Is my partner eligible for a HEAS loan?

Answer: Both you and your partner can get a loan under HEAS but you both need to be eligible and apply for it.

To see if you or your partner may be eligible, go to the online tool Payment and Service Finder on the Services Australia website.

See Eligibility for the Home Equity Access Scheme (HEAS) for more details.

5

Question: Am I eligible to continue to receive HEAS if I am imprisoned?

Answer: yes, you may be entitled to continue to receive Home Equity Access Scheme (HEAS) as a HEAS Only payment while imprisoned. You will need to complete a Home Equity Access Scheme (HEAS) – variation form (SA497) and/or Authorising a person or organisation to enquire or act on your behalf form (SS313) for a Nominee to be added.

See Eligibility for the Home Equity Access Scheme (HEAS), Change of Circumstances – Home Equity Access Scheme (HEAS), Nominee or Adding or rejecting a nominee request for more details.

6

Question: How much loan can I receive?

Answer:

  • Your loan payment is based on the Maximum Pension Rate and how much pension you get each fortnight
  • The combined fortnightly rate of pension and loan is capped at 150% of your maximum pension rate
  • You can choose the amount of loan per fortnight and the loan payment will automatically adjust to not go over the cap if your pension changes
  • If you don’t receive a pension payment you can get up to 150% of the Maximum Pension Rate as HEAS loan payments
  • If you choose to receive your HEAS loan as a lump sum advance, it may affect the amount of fortnightly loan payments you receive

The amount of accumulated debt you can build up depends on your age and value of the real estate you offer as security.

To see if you might be eligible go to:

See maximum loan amount (MLA) for more details.

7

Question: Are there any risks involved with the loan?

Answer: We recommend you seek independent legal or financial advice.

See Eligibility for the Home Equity Access Scheme (HEAS) for more details.

8

Question: What is the interest rate for the loan?

Answer:

  • The compound interest rate is currently 3.95% per annum (from 1 January 2022)
  • It is applied to the HEAS loan balance each fortnight
  • The interest rate is set by the Minister for Social Services

You can forecast a future HEAS loan balance:

See HEAS loan balance, legal costs and compound interest for more details.

9

Question: How can I apply for HEAS loan?

Answer:

See Claiming a Home Equity Access Scheme (HEAS) loan for more details.

10

Question: What documents do I have to provide to support my loan application?

Answer: There is a range of information you will need to provide to support your loan application. This includes but is not limited to:

  • proof of identity information
  • a copy of the property Land Title Certificate
  • Mortgage agreements, including:
    • reverse mortgage
    • home revision product
    • other encumbrances or guarantees that are secured against your property
  • details of any intended future borrowings. See No Negative Equity Guarantee for more details
  • property rates notice, and
  • proof of adequate and appropriate insurance

If you have previously provided documents, you may not need to again.

Details of these can be found in the HEAS section of the Services Australia website: Supporting documents.

See Claiming a Home Equity Access Scheme (HEAS) loan for more details.

11

Question: Can I change how much loan I receive each fortnight?

Answer: Yes.

  • Any requests to change the amount can be done online or by completing a Home Equity Access Scheme variation form (SA497) (if you have a partner they must consent to the request as well)
  • Your loan payments will automatically adjust so your combined pension and loan payments don’t go over 150% of your maximum pension rate

You can forecast a future HEAS loan balance:

See Rate Payable for more details.

12

Question: Are there charges or fees for the loan?

Answer: Yes.

You are responsible for the legal costs with registering and/or removing the charge or caveat against the property title. These costs are added to the HEAs loan debt.

Costs start at about $400 and can increase depending on circumstances. We will keep you informed during the application as to the expected costs.

You are not responsible for the valuation costs for the properties offered as security in your HEAS loan application.

See HEAS loan balance, legal cost and compound interest for more details.

13

Question: Can I stop and start the loan?

Answer: Yes. You can stop and start your loan online or by completing the Home Equity Access Scheme variation form (SA497).

You and/or your partner (where applicable) may need to provide consent. If a nominee makes the request, a customer and/or partner (where applicable) will need to provide consent. See Consent required for online requests for more details.

14

Question: How do I repay the loan?

Answer:

  • You don’t need to make regular repayments
  • If you wish to, you can pay the loan in full or in part, at any time
  • The loan needs to be repaid if you sell the property used to secure the loan, or from your estate (unless you wish to secure the loan against another suitable property)
  • Repayments can be made by:
    • BPAY®
    • Post Billpay
    • credit/debit card through the Home Equity Access Scheme summary page in the customers Centrelink Online Account
    • bank cheque or money order via
      - post to Home Equity Access Scheme made payable to Collector of Public Money – Services Australia
      - local service centre

Note:

  • electronic payments are the preferred repayment option. Where possible always, encourage the customer to use this option instead of cheque or money order
  • cash payments are not allowed

15

Question: Can I get a statement for my loan?

Answer: Currently, Services Australia sends an Itemised Loan Statement to customers annually.

We will send you an Itemised Statement around your birthday. If you are partnered the statement will be sent around the birthday of the younger partner.

Customers that have access to online services

View your transaction summary online. Customers can request an itemised statement online from:

  • the Home Equity Access Summary page, Home Equity Access Summary -> view transactions -> request statement, or
  • Request a Document service, Documents and appointments - > request a document -> Home Equity Access Scheme statement

Customers that do not have access to online services

Staff can issue an itemised statement using the Home Equity Access Scheme Summary (HEASS) in Process Direct.

  • In the Action field select Edit and then the printer icon
  • Print statements:
    • to a local printer by adding the local printer details, or
    • leave the printer field blank for central printing

See HEAS loan balance, legal cost and compound interest for more details.

16

Question: Is the loan taxable?

Answer: No.

17

Question: Does a HEAS loan affect my pension?

Answer: Taking out a HEAS loan will not reduce your pension. Your pension might increase if you are paid under the asset test and the HEAS loan is secured against property that is counted in the assets test.

18

Question: I am a current HEAS customer; can you tell me my current loan balance?

Answer: Yes.

Online:

Customers can view details online about their HEAS loan, including their HEAS loan balance. These details will show on the Home Equity Access Scheme summary page in the customers Centrelink online account.

Staff can go to:

  • Process Direct:
    • Select Search Customers
    • Search using their name and/or CRN in the relevant fields
    • Key ‘HEAS’ in Super Key field, select [Enter]
  • Customer First/Customer Record
    • Key ‘PLS’ in Nxt: field, select [Enter]

Both screens show the customers:

  • current loan number
  • a breakdown of the loan
  • any interest charged
  • the costs involved with registering the Charge/Caveat on the real estate used to secure the loan
  • the combined total loan amount

19

Question: What is a No Negative Equity Guarantee (NNEG)?

Answer:

See No Negative Equity Guarantee for more details.

20

Question: Are customers on Farm Household Allowance entitled to HEAS?

Answer:

Farm Household Allowance (FHA) customers may be eligible to receive Home Equity Access Scheme (Loan Only). It is payable to participants who would not otherwise receive the Age Pension because they fail the income and/or assets test, but are current or qualified under Farm Household Allowance (FHA) qualifications and eligibility.

Examples - HEAS fortnightly loan amounts and advance payable

Table 4: this table provides examples of the fortnightly HEAS loan payments (LON component) and lump sum advance payments (LONA component). See Advance payments for Home Equity Access Scheme (HEAS) loans for more details.

The Maximum Pension Rate (MPR) is the sum of the maximum basic rate of pension, and Pension Supplement, Energy Supplement and Rent Assistance (RA) the customer is eligible for under the Pension Rate Calculator. RA paid with Family Tax Benefit (FTB) is not included in the maximum payment rate for HEAS purposes.

The maximum HEAS rate is 1.5 times the MPR (150% equivalent).

These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.

Example

Description

Customer 1 – Single customer with a reduced pension payment rate (I&A test).

Single customer elects 150% of MPR

Age Pension MPR = $987.60

Age Pension actual rate (after I&A tests) = $800

Max HEAS rate = $1,481.40 (MPR x 1.5)

Fortnightly LON component (max) = $681.40 (Max HEAS rate – actual rate) ($1,481.40 - $800)

Customer 2 – Single customer with a reduced pension payment rate (I&A test) requests the maximum advance

Single customer elects 150% of MPR

Single customer has requested maximum advance which is 50% of MPR

Advance payment $12,838.80

Fortnightly payment: $987.60

Age $800

LON $187.60

Age Pension MPR = $987.60

Age Pension actual rate (after I&A tests) = $800

Max HEAS rate = $1,481.40 (MPR x 1.5)

Max Advance amount $12,838.80 (MPR x 26 x 50%)

Fortnightly deduction from Max HEAS rate for advance paid $493.80 (MPR x 50%)

Fortnightly LON component (max) = $187.60 (Max HEAS rate – actual rate – fortnightly deduction for advance) ($1,481.80 - $800 - $493.80)

Customer 3 – Single customer with maximum pension payment requests the maximum advance

Single customer elects 150% of MPR

Single customer has requested maximum advance which is 50% of MPR

Advance payment $12,838.80

Fortnightly payment: $987.60

Age $987.60

LON $0

Age Pension MPR = $987.60

Age Pension actual rate = $987.60

Max HEAS rate = $1,481.40 (MPR x 1.5)

Max Advance amount $12,838.80 (MPR x 26 x 50%)

Fortnightly deduction from Max HEAS rate for advance paid $493.80 (MPR x 50%)

Fortnightly LON component (max) = $0 (Max HEAS rate – actual rate – fortnightly deduction for advance) ($1,481.80 - $987.60 - $493.80)

Customer 4 – Single customer with no pension payable (HEAS only) requests the maximum advance

Customer elects fixed rate of $800

Single customer has requested maximum advance which is 50% of MPR

Advance payment $12,838.80

Maximum fortnightly loan payment available after advance request $987.60

Age $0

LON $800

Age Pension MPR = $987.60

Age Pension actual rate (after I&A tests) = $0

Max HEAS rate = $1,481.40 (MPR x 1.5)

Max Advance amount $12,838.80 (MPR x 26 x 50%)

Fortnightly deduction from Max HEAS rate for advance paid $493.80 (MPR x 50%)

Fortnightly LON component (max) = $987.60 (Max HEAS rate – actual rate – fortnightly deduction for advance) ($1,481.40 - $493.80)

Customer will get $800 per fortnight of LON only as this is less than the current maximum fortnightly loan available of $987.60.

Customer 5 – Partnered customer with a reduced pension payment rate (I&A test).

Partnered customer elects 150% of MPR

Age Pension MPR = $744.40

Age Pension actual rate (after I&A tests) = $400

Max HEAS rate = $1,116.60 (MPR x 1.5)

Fortnightly LON component (max) = $716.60 (Max HEAS rate – actual rate) ($1,116.60 - $400)

Customer 6 – Partnered customer with a reduced pension payment rate (I&A test) requests the maximum advance

Partnered customer elects 150% of MPR

Partnered customer has requested maximum advance which is 50% of MPR

Advance payment $9,677.20

Fortnightly payment: $744.40

Age $400

LON $344.40

Age Pension MPR = $744.40

Age Pension actual rate (after I&A tests) = $400

Max HEAS rate = $1,116.60 (MPR x 1.5)

Max Advance amount $9,677.20 (MPR x 26 x 50%)

Fortnightly deduction from Max HEAS rate for advance paid $372.20 (MPR x 50%)

Fortnightly LON component (max) = $344.40 (Max HEAS rate – actual rate – fortnightly deduction for advance) ($1,116.60 - $400 - $372.20)

Customer 7 – Partnered customer with a maximum pension payment rate requests the maximum advance

Partnered customer elects 150% of MPR

Partnered customer has requested maximum advance which is 50% of MPR

Advance payment $9,677.20

Fortnightly payment: $744.40

Age $744.40

LON $0

Age Pension MPR = $744.40

Age Pension actual rate = $744.40

Max HEAS rate = $1,116.60 (MPR x 1.5)

Max Advance amount $9,677.20 (MPR x 26 x 50%)

Fortnightly deduction from Max HEAS rate for advance paid $372.20 (MPR x 50%)

Fortnightly LON component (max) = $0 (Max HEAS rate – actual rate – fortnightly deduction for advance) ($1,116.60 - $744.40 - $372.20)

Customer 8 – Partnered customer with no pension payable (Home Equity Access HEAS only) requests the maximum advance

Partnered customer elects fixed Home Equity Access HEAS rate of $400

Partnered customer has requested maximum advance which is 50% of MPR

Advance payment $9,677.20

Fortnightly payment: $400

Age $0

LON $400

Age Pension MPR = $744.40

Age Pension actual rate = $0

Max HEAS rate = $1,116.60 (MPR x 1.5)

Max Advance amount $9,677.20 (MPR x 26 x 50%)

Fortnightly deduction from Max HEAS rate for advance paid $372.20 (MPR x 50%)

Fortnightly LON component (max) = $744.40 (Max HEAS rate – actual rate – fortnightly deduction for advance) ($1,116.60 - $0 - $372.20)

Customer will get $400 per fortnight of LON only as this is less than the maximum fortnightly loan available of $744.40

Customer 9 – Partnered customer with no pension payable (Home Equity Access HEAS only) requests the maximum advance

Partnered customer elects 120% rate of fortnightly payment

Partnered customer has requested maximum advance which is 50% of MPR

Advance payment $9,677.20

Fortnightly payment: 120% of MPR = $893.28

Age $0

LON $744.40

Age Pension MPR = $744.40

Age Pension actual rate = $0

Max HEAS rate = $1,116.60 (MPR x 1.5)

Max Advance amount $9,677.20 (MPR x 26 x 50%)

Fortnightly deduction from Max HEAS rate for advance paid $372.20 (MPR x 50%)

Fortnightly LON component (max) = $744.40 (Max HEAS rate – actual rate – fortnightly deduction for advance) ($1,116.60 - $0 - $372.20)

Customer will get $744.40 per fortnight of LON only as this is the maximum fortnightly loan available of $744.40 once the deduction of $372.20 for the advance payment is included.

Customer 10 – Partnered customer with no pension payable (Home Equity Access HEAS only) requests partial advance

Partnered customer elects 120% rate of fortnightly payment

Partnered customer has requested advance but as they would like to retain fortnightly payment of 120% of MPR, customer would be entitled to 30% of MPR as an advance

Advance payment (30% of MPR) $5,806.32

Fortnightly payment: 120% of MPR = $893.28

Age $0

LON $893.28

Age Pension MPR = $744.40

Age Pension actual rate = $0

Max HEAS rate = $1,116.60 (MPR x 1.5)

Advance amount $5,806.32 (MPR x 26 x 30%)

Fortnightly deduction from Max HEAS rate for advance paid $223.32 (MPR x 30%)

Fortnightly LON component (max) = $893.28 (Max HEAS rate – actual rate – fortnightly deduction for advance) ($1,116.60 - $0 - $223.32)

Customer will get $893.28 per fortnight of LON only as requested.

Contacts

Home Equity Access Scheme (HEAS) National team

Calculator for Complex Assessment Officers (CAO)

Do not share this attachment externally. See Freedom of Information - Information Publication Scheme.

An attachment is available. Do not share it externally: An attachment is available. Do not share it externally.Home Equity Access Scheme grant and projection calculator

Use 'Save As' work around to download/use attachment.

Appeal codes

Benefit type used for HEAS

HEA- Home Equity Access Scheme.

Original decision codes

Table 5: this table has valid codes to enter into the Internal Review/Explanation Script, when a customer requests a review of decision for HEAS.

Code

Description

CAN

Cancellation

HLB

Home Equity Loan balance

REJ

Rejection

RAT

Rate

STA

Start date

Reasons for original decision codes

Table 6: this table has valid codes to enter into the Internal Review/Explanation Script, when a customer requests a review of decision for HEAS.

Code

Description

HAP

Advance payment amount

HCC

Cost/charges attributed

HCG

Claim grant date

HCI

Calculated interest

GIR

Did not respond to info request

HFA

Fortnightly amount paid

HMA

Maximum loan amount/loan security

HMR

Maximum rate payable

HQA

Qualification

HRP

Restart payment date

HTD

Total Loan amount Owing