Home Equity Access Scheme (HEAS) cancellation, restorations and rejections 065-19060321

A customer who has lodged an application for HEAS loan payments may not be entitled to HEAS if they do not meet the eligibility provisions. In these circumstances, the application must be rejected.

HEAS applications are processed through Process Direct. If a rejected application needs to be reindexed (for example, as a result of a formal review of decision), a Social Application (SOA) must be manually created in Process Direct and any new data manually coded.

• Customers can request up to 2 advance payments of the HEAS loan in a 26 fortnight period. The request may reject if the customer has:
• received 2 advance payments in the preceding 26 fortnight period
• already advanced the full amount available to them (50% of their maximum pension rate in the last 26 fortnight period), or
• reached their Maximum Loan Amount (MLA)
• Staff can withdraw an advance payment request at the customer’s request

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

Cancellation represents a loss of eligibility to receive HEAS loan payments. This can occur for a variety of reasons but often is the result of a change in the customer's circumstances. The system will automatically cancel HEAS loan payments when a change of circumstance is updated on the customer's record.

When a customer ceases to receive HEAS loan payments, they continue to remain a participant of the HEAS until they repay the loan. The outstanding loan balance continues to accrue interest, compounding fortnightly, until the balance is repaid in full.

Where a cancellation is the result of a customer request or staff determination, the cancellation reason may need to be manually recorded.

Requests for payment cancellation

A HEAS customer or an approved nominee can stop HEAS loan payments at any time:

• The request can be done through their:
• Centrelink Online service, see  Consent required for online requests  for more details, or
• in writing by completing a Home Equity Access Scheme variation form (SA497). The SA497  must  be signed by the customer, and their partner (if they are a member of a couple)
• Interest continues to accrue on the outstanding HEAS loan amount,  compounding  fortnightly until fully recovered

Where a customer or an approved nominee has previously requested and now contacting in relation to their request to stop payment for HEAS not being actioned, staff can request cancellation action by a Complex Assessment Officer (CAO). Use the Fast Note > Complex Assessment > Request for CAO action > Home Equity Access Scheme.

See  Change of circumstances – Home Equity Access Scheme (HEAS)  for details.

The HEAS loan payments are paid as a rate component of the person's qualifying payment. If the qualifying payment is cancelled or suspended, generally the HEAS loan payments will also stop, except where the payment stopped for payability based reasons.

In these circumstances the benefit status of the qualifying payment is automatically set to Current Zero Rate (CZR) for reason PLS. This displays on the Pension History Status (PNSH) screen as Home Equity Access Scheme, to enable the customer’s HEAS loan payments to continue being paid. A letter is sent to the customer to advise that their HEAS loan payments will continue to be paid even though their qualifying payment has stopped.

If the qualifying payment stops for any other reason, the customer’s HEAS loan payments automatically stop for reason ‘STS – No qualifying payment’. A cancellation letter is sent to advise customers their HEAS loan payments have stopped.

If a customer’s fortnightly HEAS loan payments have cancelled, manual restoration is required to restart their HEAS loan payments. The exception is if HEAS loan payments have cancelled for reason STS (no qualifying payment). When the qualifying payment restores, the HEAS loan payments automatically restarts.

A decision to start fortnightly HEAS loan payments may occur at the request of the customer, as a result of a change of circumstances, or a favourable review of Services Australia's decision to stop payment. Before starting HEAS loan payments, it is important to establish the customer's ongoing eligibility. If it has been more than 13 weeks since a HEAS advance payment has been made or the fortnightly HEAS loan payments stopped, the customer may be required to lodge evidence to enable eligibility to be re-established. The customer may be asked to complete the Home Equity Access Scheme review (SA498) form. The  Resources  page contains a link to the SA498 form.

The determination of whether a new application is required is at the discretion of the Home Equity Access Scheme National team based on the customer’s individual circumstances.

Requests to start fortnightly payment

Customers can request their HEAS fortnightly payments to start:

• via their myGov Centrelink online account by selecting Manage payments > Home Equity Access Scheme summary > Start payments, or
• lodge a Home Equity Access Scheme variation form (SA497)

Staff can request restoration action by a Complex Assessment Officer (CAO) in the Home Equity Access Scheme National team, use the Fast Note > Complex Assessment > Request for CAO action > Home Equity Access Scheme.

• Customers and/or partner must claim the HEAS online, or use a:
• Home Equity Access Scheme partnered application form (SA310), or
• Home Equity Access Scheme single application form (SA496)
• Staff use Process Direct to review and process the HEAS applications within a 13 week period
• The HEAS does not have abridged claim processing, as the Social Security (Administration) Act 1999 does not cover the HEAS
• Complex Assessment Officers must check all updated information is provided. Once all of the required information is available, the application can progress

The Resources page contains a links to the SA310 and SA496 forms.

Process Direct:

• is used to check and record claim progress
• contains details provided by the customer:
• online, or
• recorded using Assisted Customer Claim (ACC)
• displays documents the customer has provided, or has been asked to provide
• pre-populates customer and/or partner details into a HEAS application activity, if the application was lodged online or via ACC
• contains functionality to request information from the customer and/or partner via Request Documents
• lists tasks that need to be completed by staff or the applicant/s before the application can be finalised

See Process Direct for more details.

The Resources page contains details about the specific screens that require coding in a HEAS application.

Staff must action some tasks outside of Process Direct. The following functions are completed in Customer First, and do not stop processing in Process Direct:

• Fast Notes
• Submitting real estate valuation requests, and
• Uploading documents

Note: do not process the HEAS applications in Customer First or Customer Record.

Reason codes are used to record a decision to cancel HEAS loan payments, or to reject a HEAS application. Most reason codes are automatically determined by the system based on the customer’s circumstances, however there are also manual codes.

Where a cancellation or rejection determination has been made, the applicable reason code is recorded or displayed in the Reject/Cease Reason field on the HEAS Details (PLS) screen.

The Resources page contains a list of the cancellation and rejection codes applicable to HEAS application and HEAS advance payment requests.

If HEAS fortnightly loan payments have been cancelled, the Ceased Loan Indicator on the HEAS Details (PLS/HEAS) screen must be changed to ‘Y’ from the determined Effect Date.

The only staff with the delegation to reject, cancel or start the HEAS loan payments are Complex Assessment Officers (CAO) in the Home Equity Access Scheme National team.