Home Equity Access Scheme (HEAS) reviews 065-08020060

Reviews for HEAS loans automatically initiate and complete by the system for the following reasons:

• fortnightly calculation of interest on the HEAS loan balance, go to Step 2
• annual reassessment of the maximum loan amount (MLA), go to Step 3
• the total HEAS loan balance has fallen within $5,000 of the MLA, go to Step 4
• the total HEAS loan balance has reached the MLA, go to Step 5
• consumer Price Index (CPI) increases, go to Step 6

These automated HEAS reviews do not require staff to take any manual action.

Note: check the Loan Details (PLS) screen in Customer First/ (HEAS) screen in Process Direct.

For HEAS Risk based reviews, go to Step 9 Table 2

When a HEAS loan is granted, the system automatically sets up a review to reassess the customer’s loan each fortnight. When the review runs:

• the HEAS loan balance is updated with any HEAS loan payments issued during that fortnight, including:
• regular HEAS loan payments
• HEAS arrears, and
• HEAS one off payments manually paid via the Payment Adjustment (PYAJ) screen
• interest is calculated and updated automatically on the customer’s HEAS loan balance

Any HEAS loan repayments made during the fortnight will have been taken into account by the time the fortnightly HEAS review runs. The HEAS loan balance automatically adjusts when repayments are coded.

The updated HEAS loan balance, including accrued interest, is recorded on the HEAS Details (PLS/HEAS) screen.

HEAS reviews run one day after the Entitlement Period End Date (EPED) each fortnight. The Event Date for the update is the EPED of the fortnight that has just ended.

For example, if the entitlement period is 1 January 2020 – 14 January 2020, then:

• the HEAS review for that fortnight runs on 15 January 2020 (the EPED+1 day), and
• the new HEAS loan balance and interest calculation is updated on the PLS/HEAS screen using 14 January 2020 (the EPED) as the Event Date

HEAS reviews continue to run each fortnight until the HEAS loan balance is repaid in full.

The MLA is calculated based on the value of a customer’s real assets and their age component. The age component for HEAS is determined as follows:

• if the customer is single, the age component is the customer’s age
• if the customer is partnered, the age component is the age of the younger member of the couple

The system automatically recalculates the customer’s MLA each year when their age component increases. The age component increases on the customer’s birthday, or if they have a younger partner (where applicable), on the partner’s birthday.

The MLA recalculation occurs at the end of the entitlement period in which the applicable birthday falls. The updated MLA is displayed on the HEAS Details (PLS/HEAS) screen in the Maximum Loan Amount field. The Event Date for the updated MLA is the Entitlement Period End Date (EPED) for that fortnight.

Upon completion of a HEAS review, a HEAS itemised loan statement with the updated MLA is automatically sent to the customer, unless the customer is deceased. If the customer is deceased, the letter is held on the BLST screen and an email is automatically sent to the Home Equity Access Scheme (HEAS) National team to review the statement release.

For manual HEAS review and release of HEAS letters see Step 10 in Table 2.

Note: the system automatically recalculates the MLA where the Loan Security value, Nominated Amount or Deductions are manually changed on the PLS/HEAS screen. Staff can also manually trigger a re-calculation of the MLA by entering 'Y' to the Recalc field on the PLS/HEAS screen.

If a customer’s HEAS loan balance is within $5,000 of their MLA, the system automatically generates a letter advising the customer that they are approaching their MLA. The letter can be viewed on the History Summary (HS) screen.

This letter provides the HEAS customer the opportunity to consider their financial circumstances and make necessary arrangements for when their HEAS payments stop. Some HEAS customers may decide to change their current HEAS loan arrangement to extend the period of time they can continue to receive HEAS loan payments.

For example:

• customers may request to decrease their fortnightly loan amount, or
• if a customer has more equity in Australian real estate, they may choose to:
• offer this as more security for the loan, and
• ask for the MLA be recalculated

Requests to change a customer’s HEAS loan arrangement must be made in writing and signed by the customer and their partner (if applicable). It is recommended that customers seek independent financial or legal advice before requesting an increase to their MLA.

When a customer’s HEAS loan balance reaches their MLA, their HEAS loan payments automatically stop being paid. The following automatically occurs on their record:

• The Cease Loan Indicator on the HEAS Details (PLS/HEAS) screen is set to ‘Y’ to prevent further HEAS loan payments from being issued
• The Reject/Cease Reason field on the PLS/HEAS screen is updated to show cessation reason MBL (MLA reached)
• A letter is generated to advise the customer that their HEAS payments have stopped. The letter can be viewed on the History Summary (HS) screen

The system continues to calculate interest on the HEAS loan balance each fortnight until the loan has been repaid in full.

The customer may contact to offer additional security for their HEAS loan and request the MLA be recalculated. See the Change the loan amount table.

The preferred option is for HEAS customers to use their Centrelink online account. If a HEAS customer is unable to use online self service, they can complete the Home Equity Access Scheme Variation (SA497) form.

See Escalating enquiries to CAO's for more details.

It is recommended that HEAS customers seek independent financial or legal advice before requesting an increase to their MLA.

CPI reviews are automatically actioned by the system in March, July and September of each year.

An exception to the automated process occurs if a HEAS customer is paid via manual rate. In this case, a Manual Follow Up (MFU) review is created for staff to manually apply the CPI update. See Step 8 in Table 2 for details about processing HEAS MFU’s for CPI updates.

For details about current payment rates see Rates and Thresholds.

A HEAS Manual Follow Up (MFU) review is automatically generated in certain circumstances, including for the following reasons:

• The customer becomes deceased, go to Step 2
• Transmission of title, go to Step 2
• Single customer becomes partnered, go to Step 3
• Partnered customer becomes single, go to Step 4
• The qualifying payment stops for:
• an Age Pension age customer who receives a qualifying payment other than Age Pension, go to Step 5
• a payability based reason, go to Step 6
• certain other reasons, go to Step 7
• Consumer Price Index (CPI) update for manual rate customer, go to Step 8

A HEAS manual review is also required for:

• system-generated letters created on deceased records, go to Step 10
• HEAS saved cases (old scheme customers) , go to Step 11
• HEAS task locking conflicts, go to Table 3
• HEAS only customer claims pension, go to Step 12

Manual reviews are actioned by Complex Assessment Officers (CAO) in the Home Equity Access Scheme (HEAS) National team.

A HEAS MFU generates when a death action is recorded and the customer has an outstanding HEAS loan balance. The HEAS MFU has the following attributes:

• Activity notes: I012PH - HEAS customer has passed away
• Keywords: PLSMFU, PLSDEA

Complex Assessment Officer (CAO) is to determine the appropriate actions. These may include:

• ensuring fortnightly HEAS loan payments have stopped being paid:
• For example check that the Cease Loan Indicator on the HEAS Details (PLS/HEAS) screen has automatically set to Y at the next fortnightly LNA review
• This is the customer's next EPSD
• determining appropriate action for HEAS loan recovery and settlement. See Initiating recovery of a Home Equity Access Scheme (HEAS) outstanding loan amount
• assisting in the manual calculation of a Lump Sum Bereavement Payment (LBP), where required. HEAS loan components must be excluded from the calculation of LBP

In some circumstances after a customer has passed away, the surviving partner or a third party may need a transmission of title.

Has a Transmission of Title been requested?

• Yes, go to Step 13
• No, procedure ends here

An MFU generates when a single customer becomes linked to a partner and:

• the customer currently receives HEAS loan payments, or
• has an outstanding HEAS loan balance
  Examples of reasons a customer is linked to a partner include marriage, or entering a de facto relationship

The MFU has the following attributes:

• Activity notes: I005PH - MFU partner linked
• Keywords: PLSMFU, PLSLNK

Complex Assessment Officers (CAO) must review the impacts (if any) for the purposes of HEAS, including:

• assessing the customer’s continuing eligibility to receive HEAS loan payments
• taking into account any changes in the combined asset values, for example:
• as a result of the new partner bringing assets into the relationship, or
• the customer’s share in the ownership of their own assets being reduced
• checking changes to real estate asset(s) used as a HEAS loan secured property and revise the loan security value (as appropriate)
• identifying the new partner’s intentions, if any, to apply for a loan under HEAS

An MFU generates when a partnered customer is unlinked from their partner, and:

• the customer currently receives HEAS loan payments, or
• has an outstanding HEAS loan balance
  Examples of reasons a customer may become unlinked from their partner include divorce, separation or death of their partner

The MFU has the following attributes:

• Activity notes: I004PH - MFU unlinked from partner
• Keywords: PLSMFU, PLSUNL

Complex Assessment Officers (CAO) must review the impacts (if any) for the purposes of HEAS, including if:

• the customer/partner has ongoing eligibility for HEAS loan payments
• the asset(s) securing a HEAS loan will be disposed of or redistributed
• recovery action for HEAS loans must be initiated. See Initiating recovery of a Home Equity Access Scheme (HEAS) outstanding loan amount
• the legal formalisation of the end of a marriage or marriage-like relationship has resulted in a court order to transfer the HEAS debt to one person.
  See Transfer of the Home Equity Access Scheme (HEAS) debt based on Court Order for the transmission of title template and more details

If the customer was receiving HEAS loan payments at the time of being unlinked from their partner, their HEAS loan payments may automatically stop if the customer is no longer qualified.

For example, if the customer is under Age Pension age and had qualified by virtue of their partner who was of Age Pension age. The customer must qualify for HEAS loan payments in their own right to continue receiving HEAS.

Note: the PLSMFU, PLSUNL activity must not be completed until an assessment by the delegate has determined the customer has ongoing eligibility, the assets securing a HEAS loan will be disposed of or redistributed, recovery action has been completed or a transfer of HEAS based on a Court Order. See How to code and action a manual review for more details.

A HEAS MFU generates when a customer’s qualifying payment is cancelled and all the following criteria are met:

• The customer is Age Pension age
• Their qualifying payment is:
• Disability Support Pension, or
• Carer Payment
• HEAS loan payments have cancelled when the qualifying payment cancelled
• The customer has an outstanding HEAS loan balance

For example, the customer is Age Pension age and they receive HEAS loans payments as well as Carer Payment (CAR) or Disability Support Pension (DSP). If HEAS stops when the CAR or DSP stop, an MFU is created to determine if the customer may have ongoing eligibility for HEAS via the Age Pension qualification rules.

The HEAS MFU has the following attributes:

• Activity notes: I008PH - HEAS customer APA
• Keywords: PLSMFU, PLSAPA

The Complex Assessment Officer (CAO) is to determine whether the customer may be payable as a HEAS ‘loan only’ arrangement using Age Pension qualification.

If Coding payment restorations of HEAS payments is possible, contact with the HEAS customer is required to determine their desired outcome, noting it may be their preference to no longer receive HEAS loan payments. The HEAS customer may wish to test their eligibility for Age Pension first, in which case they must lodge an Age Pension claim. The outcome of the pension claim must be determined before recommencing HEAS loan payments.

For details about how to start HEAS loan payments see Home Equity Access Scheme (HEAS) cancellation, restorations and rejections. When starting HEAS loan payments as a HEAS loan-only payment, staff must set the HEAS Only Claim indicator to Y on the HEAS Details (PLS/HEAS) screen. This prevents pension components from being incorrectly paid.

An HEAS MFU generates if a customer’s qualifying payment is cancelled for a payability based reason. When the qualifying payment cancels for one of these reasons, HEAS loan payments continue to be paid as a HEAS loan only arrangement. The qualifying payment, although cancelled, remains notionally ‘current’ in the system at a zero rate to facilitate the HEAS loans payments.

This does not override the legislative decision that the customer is no longer eligible for a payable rate of the qualifying payment. Therefore manual action is required to prevent any pension components from becoming payable.

The HEAS MFU has the following attributes:

• Activity notes: I013PH - HEAS Qualifying Payment stopped (HEAS ongoing)
• Keywords: PLSMFU, PLSQPC

The Complex Assessment Officer (CAO) must set the HEAS Only Claim indicator on the HEAS Details (PLS/HEAS) screen to Y. This will prevent the system from incorrectly auto-restoring the qualifying payment in response to coding updates on the customer’s records. For example, where the customer makes an update via their Centrelink online account, or staff code an income or asset update.

Extended suspension Periods for pension payments

Where a HEAS customer is on a qualifying payment:

• their qualifying payment is suspended for a reason of Extended Suspension Period (ESP), or
• Extended suspension period Partner (EPP)

Complex Assessment Officers (CAO’s) must ensure a customers HEAS Only indicator on the PLS/HEASS screen is not manually set to yes (Y).

Completing this action will incorrectly remove the HEAS customer’s eligibility to entitlement to a Pension Concession Card (PCC).

A Home Equity Access Scheme (HEAS) issues webform must be completed in mySupport where a HEAS customer is identified:

• on a qualifying payment
• who is currently suspended for a reason of ESP or EPP
• the customers HEAS Only indicator has been set to Y, and
• their Pension Concession Card has been cancelled

Where the system has notionally ‘overridden’ a pension cancellation reason for the purposes of paying the HEAS loan only, staff can see the cancellation reason for the qualifying payment as follows:

• Go to the XPDETR screen
• Type PHPS in the Group field and press [Enter]
• The pension cancellation details will be indicated by the following:
• The PHPS.PEN.STS.CODE will be CAN
• The PHPS.PEN.RSN.CODE will show the cancellation reason code (i.e. one of the payability based reasons)

If the qualifying payment has already been restored by the time the HEAS MFU is actioned, check whether the restoration action was correct. The qualifying pension must only be restored if qualification for payment has been re-established. A customer will generally have to lodge a new application unless a decision has been made to reinstate the payment. For guidance see Restoration of payments (CLK). If payment has been correctly restored there is no need to change the HEAS Only Claim indicator. Incorrect auto-restoration of the qualifying payment may require corrective action (for example, manual cancellation) and a debt raised for the pension components.

A HEAS MFU generates for customers with an outstanding HEAS loan balance when the qualifying payment stops for one of the below reasons and as a result their HEAS loan payment stops on the same day:

• CLR - Claimant request/Voluntary surrender
• VST - Voluntary surrender trust and company
• CMI - Compensation settlement under investigation
• CMP - Precluded due to Compensation direct deductions
• COM - Compensation preclusion period
• FCC - Fail to claim compensation

The HEAS MFU has the following attributes:

• Activity notes: I011PH - HEAS Qualifying Payment stopped
• Keywords: PLSMFU, PLSQPS

The Complex Assessment Officer (CAO) reviews whether the customer can continue receiving HEAS loan payments as a HEAS loan only arrangement.

Based on the cancellation reason being payability-related or a voluntary cessation, the customer may still be eligible to continue getting HEAS loan payments. Staff must establish ongoing eligibility for HEAS, before making a decision to re-start a customer’s HEAS loan payments.

HEAS loan payments must only be started as a HEAS loan only payment with the written consent from the customer and partner/nominee (if applicable). Contact with the customer is required to determine their desired outcome, noting it may be their preference to no longer receive HEAS loan payments.

For how to start HEAS loan payments see Change of circumstances – Home Equity Access Scheme (HEAS).

When starting HEAS loan payments as a HEAS loan-only payment, staff must set the HEAS Only Claim indicator to Y on the HEAS Details (PLS/HEAS) screen. This prevents pension components from being incorrectly paid.

CPI reviews are actioned automatically by the system in March and September each year. A HEAS MFU only generates for the purposes if a HEAS customer is paid via manual rate, as manual rates need adjusting after each CPI.

The HEAS MFU has the following attributes:

• Keywords: PLSCPI

To manually adjust a HEAS loan rate, in Customer First:

• Select the HEAS MFU and go to the HEAS Details (PLS/HEAS) screen to confirm the new HEAS loan component payable
• Go to the Assessment Results (AR) screen and place a 'T' next to the assessment line for the customer (if the customer is partnered only one person's record can be updated at a time) and press [Enter]
• This will go to the Daily Rates Summary (RATS) screen where a row will show for the relevant period requiring a manual rate. Place an ‘M’ next to the applicable row (noting there may be more than one) and press [Enter]
• Code the daily rate for a HEAS loan component for each applicable period and press [Enter] to accept the change. Repeat for any other rows requiring manual adjustment
• Once all lines are completed return to the AR screen. If a HEAS customer is partnered, repeat the manual rate coding for their partner, then finalise the activity

For details about current payment rates see Rates and Thresholds.

CPI updates may result in a partial entitlement to a qualifying payment. If there is an increase in basic entitlement, manual CPI reviews must be conducted as soon as the new rate information is available to make sure the correct rate of HEAS is calculated.

• When a customer is profiled for a HEAS review, a Note and DOC automatically creates. This allows all staff to see either:
• the reason for the HEAS review, or
• the reason that a HEAS review is not required
• If customers have a change in circumstances that results in a HEAS review not being required after a HEAS review is triggered, a Note creates with the reason for the HEAS review being cancelled. For example:
• customer is overseas
• in a natural disaster area
• bereavement
• HEAS payments have stopped
• Services Australia sends customers a notification when they are selected for a HEAS review, either by:
• a task in their Centrelink online services, or
• a letter asking them to download the Home Equity Access Scheme SA498 review form

Note: the preferred option is for customers to complete their reviews through their Centrelink online service.

The Resources page has a list of codes for review types and exceptions from reviews.

Complex Assessment Officers:

• are allocated HEAS reviews for processing through current Workload manager processes, and
• process HEAS reviews in Process Direct

Processing an open HEAS review

• Select the work item allocated
• The Customer and Interaction Details screen shows with:
• tabs, and
• the relevant assessment dates
• Select Notes to show the reason the customer was selected for a HEAS review
• Select Attachments. If the customer completed their HEAS review online, staff can view the responses by selecting view the attachment for QUESTIONS.HTM
  Note: this will not show if the customer returned the Home Equity Access Scheme review form (SA498)
• The QUESTIONS.HTM shows:
• Customer name
• HEAS review created date
• HEAS risk review reason - this will be high (XHI), medium (XMD) or low (XLO)
• HEAS risk review type is XPL for HEAS review
• Receipt creation date and time
• The online questions and answers
• If the customer returned an SA498 HEAS review form, and/or have provided supporting documents for their HEAS review, select Documents to view
  Note: if the customer has completed their HEAS review online, Documents shows the SA498, with a status of not required
• If staff need to send a request for information, apply an extension or update the DOC with more details, Select and then select applicable option:
• Update DOC, with additional details
• Apply a HEAS Review extension
• Request for Information for HEAS Review
• Select Process
• Select PLS_NOB - PLS Task selector NOB and make all required updates:
• Mortgage values on the HEAS Details (PLS/HEAS) screen
• Bankruptcy indicator
• Adequate insurance indicator
• Valuation requests
• Change in relationships
• Change in title or ownership
• If a HEAS loan secured property is an assessable asset, see Security for the Home Equity Access Scheme (HEAS), to code the Real Estate/Business Summary (REBS) screen
• If the customers HEAS fortnightly payments have stopped, remove the cease loan indicator on the PLS/HEAS screen before to finalising the update. This change may only show on the PLS/HEAS screen after the next Entitlement Period End Date (EPED)
• Select Assess to go the Entitlement (ELD) screen
• If the changes are selected for Quality Management Application (QMA), the checking must be complete before staff can finalise the customer and interaction details status
  Note: staff must select Assess and finalise through the ELD screen, even if no updates are required
• Go to the Customer and Interaction details
• Select Status, and Finalise
• Select Save

To search for HEAS reviews using a Customer Reference Numbers (CRN), go to the Process Direct inbox:

• Select Main category: Online Intervention
• Select Type: Home Equity Access Scheme Review
• Select Go. The Customer and Interaction Details screen shows, and staff can process the review as above

Some High Risk customers with an anniversary date in:

• March and April 2024

Note: the previous High Risk anniversary dates were:

• 30 October 2022 and 27 November 2022
• 1 October 2023 and 20 November 2023

Manual actions:

• manual HEAS reviews have been created on HEAS customer records with a due date of their anniversary date in 2024 and 2025
• DOC on the Documents List (DL) for the 2024 HEAS reviews have been annotated to include details about action needed 2024 and 2025 year review
• after the manual HEAS review in 2024 and 2025 is completed
  Note: staff will not be required to manually record a HEAS High Risk review after completion of the customers 2025 review

The previous anniversary years were:

• 2022
• 2023

Retirement Villages

Where a HEAS customer has previously advised that they live in a Retirement Village, request the customer and/or the partners Title Certificate before finalising their HEAS review.

The HEAS customer or their partner’s name must be on the Land Title Certificate that make use of the:

• land lease
• leasehold, or
• loan licence arrangements

Ownership is determined by the placement on information on the Title Certificate

• Typically ownership is at the top as first schedule/registered owner
• If a HEAS customer or partner information is second schedule, they may not own the property outright

Retirement Villages do not generally provide land ownership. This means that they cannot be used as security for the purposes of HEAS and/or the Property Title Certificate to be eligible for HEAS and must be cancelled REA (Australian real estate requirements not met). See Home Equity Access Scheme (HEAS) cancellation, restorations and rejections.

Self-Managed Superannuation Funds (SMSF)

Where a customer has previously advised that they have used SMSF as security for their HEAS loan, request a copy of their funds that were used to secure their HEAS Loan.

A HEAS claimant must not use property held by a SMSF as security for their HEAS loan as it is a requirement to have sufficient real assets to secure and repay the loan and must be cancelled DIS (Secretary discretion). See Home Equity Access Scheme (HEAS) cancellation, restorations and rejections.

Note: Self-Managed Superannuation Fund (SMSF) that require cancellation must include the following information:

“SMSF utilised as security for a HEAS Loan negates the Superannuation Industry (SIS) Act prohibition, borrowing money when a person is a trustee of a regulated superannuation fund.”

All letters generated for HEAS on deceased records are held for manual review by a Complex Assessment Officer (CAO). The system places letters on hold automatically, on the Select Cobs Record (BLST) screen. A system-generated email report is sent to the Home Equity Access Scheme (HEAS) National team mailbox for investigation of whether it is appropriate to issue the letter or if a manual letter needs to be created.

To determine if it is appropriate to release the letter, review the letter type and Document List (DL) for any details about who correspondence is to be sent to, following the customer’s death. Examples of reasons it may not be appropriate to release the letter include:

• a bereavement period may be in place, during which no correspondence must be sent to the customer, surviving partner or nominee
• an instruction has been documented to send correspondence to another person. For example:
• the surviving partner
• a nominee, or
• the executor of the deceased estate

If doubt exists, consult a Team Leader and/or determine an appropriate escalation avenue for assistance.

To release a held HEAS letter:

• go to the BLST screen and locate the held HEAS letter
• enter ‘R’ in the selection box for the row and press [Enter]
• to check the customer’s record to confirm the HEAS letter has been issued, await overnight processing then check the History Summary (HS) screen

To delete a held HEAS letter:

• go to the BLST screen and locate the held HEAS letter
• enter ‘D’ in the selection box for the row and press [Enter]. The HEAS letter will be immediately deleted
• determine if a manual letter needs to be sent in place of the deleted HEAS letter

Note: only staff with access to process bereavement letters can delete or release a letter on a deceased record.

If staff need to issue a manual HEAS letter, including a HEAS deceased loan statement or HEAS deceased estate letter from Process Direct via the Home Equity Access Scheme letters (HEASL) screen to:

• issue HEAS Deceased loan statements to the surviving partner
• issue HEAS Deceased estate letters to:
• the estate of a deceased customer who was single
• the estate of a surviving partner after their death
• the executor of an estate. Note: Services Australia must have evidence of an arrangement

Customers who have a HEAS loan under the provisions of the 1985 ‘old scheme’ are saved cases and require a HEAS annual review. There are no system-generated HEAS reviews created on saved cases, therefore review actions must be set up and conducted manually.

These manual HEAS reviews are created and actioned by a Home Equity Access Scheme National Complex Assessment Officer (CAO). The manual actions required are:

• in Customer First, create a manual review on the Review Registration (RVR) screen and complete the fields as follows:
• Service Reason: AGE
• Review Reason: HLP (Hardship/Loan Payment)
• Due Date: 12 months from today's date
• Source: INT
• Date of Receipt: today's date
• Notes: 'HEAS saved case requires annual review. Return to OB 065-08020060 for action.'
• Keywords: PLSMFU
• Workgroup: leave blank
• Position: leave blank
• Transfer to Region: leave blank
• the review will mature on the Due Date coded in the RVR activity. Workload Management will allocate the review for manual action
• on maturity of the HEAS review:
• Manually calculate the interest that has accrued in the previous 12 months. Note: the interest calculation applicable to the old scheme is different to the current HEAS. See the Social Security Guide, 3.4.5.100 Saved Cases - PLS before 10 July 1996 for details
• Update the DOC on the Document List (DL) screen with the updated interest amount and HEAS loan balance
• Create and issue a HEAS loan itemised statement to the customer (or where applicable, their surviving partner or executor) setting out the amount of the outstanding HEAS loan balance to date
• Upon completion of the HEAS review, in Customer First, create a new manual review on the Review Registration (RVR) screen and complete the fields as follows:
• Service Reason: AGE
• Review Reason: HLP (Hardship/Loan Payment)
• Due Date: 12 months from today's date
• Source: INT
• Date of Receipt: today's date
• Notes: 'HEAS saved case requires annual review. Return to OB 065-08020060 for action.'
• Keywords: PLSMFU
• Workgroup: leave blank
• Position: leave blank
• Transfer to Region: leave blank
• The review will mature on the Due Date coded in the RVR activity. Workload Management will allocate the review for manual action

As a HEAS loan amount (including interest) is an allowable deduction from the assessable asset value of the real estate used as secured property for their HEAS loan, update the Mortgage/Loans field on the Real Estate Detail (RE) screen with the HEAS loan amount. See Security for the Home Equity Access Scheme (HEAS) for details about how to assess and apply the deduction.

To create a manual HEAS review see How to code and action a manual review. Add keyword PLSMFU to manual reviews created for the purposes of HEAS.

Staff must:

• update Income and Asset details provided from claim via a change of circumstances (CoC) transaction
• send a Fast Note to Home Equity Access Scheme (HEAS) National team - Complex Assessment Officers (CAO) to advise that a HEAS only customer has claimed a pension. Fast Note - select Auto Text, use Older Australians > Home Equity Access Scheme > HEAS Notification of Change of Circs (CoC)

Upon allocation of the Fast Note, CAOs review the change of circumstances and contacts the customer to discuss impact of HEAS circumstance change.

If a pension is payable (for example, income and assets are below the applicable cut off thresholds):

• in Customer First, code a reassessment (REA) line on the Benefit Action (BA) screen, using the date of claim as the:
• date of receipt, and
• date of event
• change the HEAS only claim indicator on the HEAS Details (PLS/HEAS) screen to N
• pension payments show on Payment Summary (PS) screen from the date of claim
• finalise the activity
• DOC action taken. Use Fast Note - select Auto Text, use Older Australians > Home Equity Access Scheme > HEAS Notification of Change of Circs (CoC)
• send a Fast Note back to advise:
• HEAS review has been completed
• create a manual grant DOC
• change the claim status in Process Direct to Complete
• if pension payments have not started from date of claim, manually calculate the pension arrears and pay via the Payment Adjustment (PYAJ) screen
• create an Online Advice (OLA) letter Q011 to the customer (and correspondence nominee if applicable)

If a pension is not payable (for example, income and assets are above the applicable cut off thresholds):

• DOC action taken. Use Fast Note - select Auto Text, use Older Australians > Home Equity Access Scheme > HEAS Notification of Change of Circs (CoC)
• send a Fast Note back to advise:
• HEAS review has been completed and customer has elected to remain as HEAS loan only
• create a manual rejection DOC
• change the claim status in Process Direct to Complete
• create an Online Advice (OLA) rejection letter Q134 to the customer (and correspondence nominee if applicable)

There are 2 main types of requests for Transmission of Title.

• Surviving partner - if the secured property is owned with a surviving partner, either as joint tenants or tenants in common, the surviving partner may request to have the property title transferred into their name only. This is referred to as a Survivorship Application.
• Third party transfers - if the deceased HEAS customer willed any part of the secured property that they owned to their surviving partner and/or a third party or parties, the third party or parties may request their share be transferred into their name/s. Appropriate recovery action must be taken

Survivorship Application

• If a decision has been made not to seek recovery of the deceased’s HEAS debt, (as per Initiating recovery of a Home Equity Access Scheme (HEAS) outstanding loan) proceed with a Transmission of Title request
• Before submitting the transmission of title request, contact the surviving partner to confirm the request was received
• Ask the surviving partner if they have anyone acting on their behalf in a legal capacity. If:
• Yes, obtain the details
• No, suggest that they may want to seek legal advice
• Tell the surviving partner the costs associated with the request are payable by them
• Tell the surviving partner that depending on their state’s land title requirements, there may be additional costs if the request requires both the removal of the existing charge or caveat and the registration of a new charge or caveat over the HEAS secured property
• If the surviving partner asks about the registration of a new charge or caveat, obtain an estimate of the additional costs
• If the surviving partner requests to proceed, submit the Transmission of Title Tasking Request to the Commercial Law and Customer Compensation Branch
• In the email to Commercial Law and Customer Compensation Branch note that the surviving partner has been informed there may be additional legal costs and that they have agreed to proceed
• Ensure the tasking request is clear that:
• the Commonwealth’s interests remain intact
• if removal and replacement of the charge or caveat is required, the new charge or caveat is registered on title as soon as possible and that a title search showing the newly registered charge or caveat is provided

Note: if any issues are raised during the transmission request, i.e. the Services Australia legal provider advises of additional requirements like needing to seek a court order, seek advice from Local Peer Support (LPS).

Third party transfers

• Any time a transmission of title is to a third party, the deceased’s HEAS loan must be recovered
• Refer to Settlement of Home Equity Access Scheme (HEAS) loan amounts

Example:

A HEAS customer who has passed away has willed their property 50% to their surviving partner and 50% to a child from a previous marriage. If the child from the previous marriage requests their 50% share to be transferred to them, then Services Australia requires the deceased’s HEAS loan to be settled.

When an HEAS advance payment of a loan is issued through a HEAS activity, trigger processing is used to automatically make the following updates:

• add the HEAS advance payment to the customer’s HEAS loan balance
• code the HEAS advance payment as investment type HEA on the Direct Investments (SVDI) screen. The investment is exempt from the asset test for a period of 90 days
• removal of the asset test exemption from the HEAS SVDI screen after 90 days

HEAS Manual Follow Up (MFU) activities are created when triggered activities cannot be completed automatically. The MFU shows as a PEN/Manual Followup review on the Activity List (AL) screen and allocated via Workload Management for the Home Equity Access Scheme (HEAS) National team to action.

To identify the reason the HEAS MFU has created, review the Activity Details (AY) screen. If the keyword is:

• PLONA, go to Step 2
• HEASAVC, go to Step 3
• HEASAVR, go to Step 4

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

A PLONA trigger is created when a HEAS advance payment is granted. The trigger runs overnight and attempts to automatically add the HEAS advance payment to the customer’s HEAS loan balance on the HEAS Details (PLS/HEAS) screen.

If the PLS/HEAS screen is locked by a STArted activity, the PLONA trigger cannot process the automatic HEAS loan balance update. The trigger will retry for 7 days before creating a HEAS MFU for manual follow up.

The HEAS MFU includes the following attributes:

• Activity notes: Unable to update loan balance
• Keywords: PLONA, HEAMFU

To action the MFU, the Home Equity Access Scheme (HEAS) National team must:

• select the HEAS MFU via the AL screen, and
• manually increase the HEAS loan balance on the PLS/HEAS screen by adding the HEAS advance payment amount

HEAS advance payment amount populates in the notes on the Activity Details (AY) screen, including the HEAS advance grant date.

The Effect Date for a HEAS loan balance update on the PLS/HEAS screen must match the HEAS advance grant date.

Once HEAS coding updates are complete:

• finalise the HEAS MFU via the Assessment Results (AR) screen, and
• record the outcome in a DOC

Procedure ends here.

A HEASAV trigger is created when an advance payment is granted and the customer’s HEAS loan is secured against their principal home.

The trigger runs automatically overnight and attempts to code the HEAS advance payment as investment type HEA (HEAS-ADVANCE) on the Direct Investments (SVDI) screen.

The update includes coding an asset test exempt amount in the Loan/Encumbrance Amount $: field (Asset Test Deduction Amt: field in Customer First), as HEAS advance payments are exempt from the assets test for 90 days.

Note: do not code an asset test deduction against the New Home Deduction Amt $: field. These amounts are exempt from the sale of home provisions for sales finalised on/after 1 January 2023. See Sale of principal home.

If the SVDI screen is locked by a STArted activity, a HEASAV trigger cannot process the automatic coding update.

The trigger will retry for 14 days before creating a HEAS MFU for manual follow up.

The HEAS MFU includes the following attributes:

• Activity notes: Unable to update savings for HEAS Advance Payment
• Keywords: HEASAVC, HEAMFU

To action the MFU, the Home Equity Access Scheme (HEAS) National team must:

• select the HEAS MFU via the AL screen, and
• manually record HEAS advance payments as an investment on the SVDI screen as follows. Note: it is critical the details are recorded in this way to ensure future HEAS reviews run correctly:
• Account name: HEAS-ADVANCE
• Type: HEA
• Balance: full amount of the HEAS advance payment
• Event Date: equal to the grant date of the HEAS advance payments
• Loan/Encumbrance Amount $: field (Asset Test Dedn Amt $: field in Customer First): if applicable, key the full amount of the HEAS advance payment

HEAS advance payment amount populates in the notes on the Activity Details (AY) screen, including the HEAS advance grant date.

Once HEAS coding updates are complete, finalise the HEAS MFU via the Assessment Results (AR) screen and record the outcome in a DOC.

For more details about the automated HEAS review process for ending the 90 day asset test exemption, go to Step 4.

Otherwise, the procedure ends here.

In the HEAS advance payment has been recorded on the Direct Investments (SVDI) screen, an automated process runs after 90 days to remove the asset test exemption from the investment.

If the SVDI screen is locked by a STArted activity, the system cannot process the automatic coding update.

The system immediately creates a HEAS MFU for manual follow up.

Note: due to the possible effects on the customer’s pension rate, the update must be completed as soon as possible to prevent any rate adjustments.

The HEAS MFU includes the following attributes:

• Activity notes: Unable to Update Savings - HEAS investments no longer asset exempt
• Keywords: HEASAVR, HEAMFU

To action the HEAS MFU, the Home Equity Access Scheme (HEAS) National team must:

• Select the HEAS MFU via the AL screen, and
• Go to the Savings Summary (SVS) screen
• Select the HEAS-ADVANCE account, and
• Manually review the details to determine if the Loan/Encumbrance Amount $: field (Asset Test Dedn Amt $: in Customer First) field in Process Direct/Customer First needs to be manually set to zero
• Check the Balance field
• if the HEAS advance payment amount is zero, no coding updates are required
• if the HEAS advance payment balance is more than zero, update the investment details as per the below instruction
• HEAS advance payment balance: no change
• Event Date: equal to the grant date of the HEAS advance payments + 90 days
• Loan/Encumbrance Amount $ field (Asset Test Dedn Amt $: field in Customer Record): if applicable, key HEAS advance payment balance of the loan/encumbrance which is deductible from the investment value in whole dollars
  Only code an amount while the customer is entitled to have all or part of the asset exempted under the Assets Test

Note: do not code an asset test deduction against the New Home Deduction Amt $: field. These amounts are exempt from the Sale of Home provisions for sales finalised on/after 1 January 2023.

HEAS advance payment amount populates in the notes on the Activity Details (AY) screen, including HEAS advance grant date.

Once the coding updates are complete:

• finalise the HEAS MFU via the Assessment Results (AR) screen, and
• record the outcome in a DOC

Procedure ends here.

All staff can apply a HEAS review extension where a customer advises that they are unable to return their review within the required 21 days.

Discretion may be used to extend a HEAS review by staff who are not in the Home Equity Access Scheme (HEAS) National team where customers request:

• an extension of 21 days or less
• a Home Equity Access Scheme (HEAS) review form (SA498) to be sent

To apply an extension:

• Select Inbox from the Process Direct landing page
• Select Main category: Online Intervention
• Select Type: Home Equity Access Scheme Review
• Select CRN: type in the customers Customer Reference number (CRN)
• Select the work item
• Select > apply extension

Update the DOC with the reason for the extension.

Note: for HEAS review extension requests greater than 22 days and in complex scenarios, refer to the Home Equity Access Scheme (HEAS) National team. Use Fast Note – select Auto text, use Home Equity Access Scheme.