Change of circumstances – Home Equity Access Scheme (HEAS) 065-21112627

Any changes relating to a customer’s qualifying payment, eligibility or entitlement must be notified to Services Australia within 14 days after the event occurred (28 days for notification of bereavement).

Failure to notify a change in circumstances may result in cancellation of the customer’s qualifying payment, which may impact their HEAS loan payments.

A customer's address and telephone details must be checked by staff at every contact and updated if required.

Customer records must be kept current and up-to-date. Customers are obliged to have ongoing contact with Centrelink to ensure that when changes occur there are no payments made to the customer to which they are not entitled due to eligibility and qualification of a HEAS loan.

A customer's Home Equity Access Scheme (HEAS) circumstance information must be checked by staff at every contact including a change of circumstance, to ensure that when changes occur there are no payments made to the customer to which they are not entitled due to eligibility and qualification of a HEAS loan.

As part of HEAS reviews, update HEAS secured property details as required:

• Where the CLK Loan Property Ids on HEAS/PLS screen and Centrelink Property ID(s) on Real Estate/Business Identifying (REBI) screen are incorrect or do not match. Where there are multiple Centrelink Property IDs used as security for a HEAS loan, ensure the CLK Loan Property IDs on HEAS/PLS screen are separated by a comma. For example, CLK Loan Property IDs S999999999, S123456789
• Where the Current Market Value and Mortgages/Loans fields on the customer’s Real Estate Details (RE) screen are inconsistent with HEAS/PLS screen - Loan Security value and Deductions fields. This will ensure payment accuracy for HEAS loan customers and reduce the risk to recovering the HEAS loan. For more information, see Security for the Home Equity Access Scheme (HEAS)
• Where the HEAS loan secured property recorded on the Real Estate Detail (RE) screen has been deleted and there are no other RE summary pages, CAO will need to record the customers HEAS loan secured property information
• Where a HEAS customer’s Real Estate Detail (RE) screen – has an Asset Valuation Source field equal to CLI, VAL, AVO or IDX and the Current Market Value field is zero, a CAO must determine if a new valuation is required
• Where a HEAS customer’s Real Estate Detail (RE) screen has an Asset Valuation Source field equal to CLI, VAL, AVO or IDX and the Actual Valuation Date is greater than 3 years. CAO must determine if a new valuation is required

Note: if Complex Assessment Officers (CAO) require assistance in determining the above updates to a HEAS customers record, use the Technical Support Model in the first instance. Only if further assistance is required escalate to the Level 2 Policy Helpdesk.

A customer may notify a HEAS change of circumstances:

• by using their Centrelink online account (preferred method)
• in writing
• by attending a service centre
• by phoning Centrelink

Staff must:

• record the receipt of all correspondence
• DOC all conversations

Note: this is particularly important for HEAS as disputes can later arise about whether Services Australia was advised and in what detail.

Whilst changes in circumstances are managed by the Complex Assessment Officer (CAO) HEAS National Team, notification to one Centrelink section is legal notification by the customer to Centrelink as a whole and means that the customer has fulfilled their obligation to notify.

A customer must contact Centrelink to advise if they:

• become bankrupt or subject to an insolvency agreement
• their partner (if applicable), or a third party co-owner, become bankrupt/insolvent
• have a change in relationship status
• change the secured property
• become imprisoned
• want to make changes to their loan payments, such as:
• stop fortnightly HEAS loan payments
• restart fortnightly HEAS loan payments
• change their fortnightly HEAS loan payments
• add, remove or change the HEAS secured property
• change their HEAS loan amount

When the customer notifies a change of circumstances, consider if further evidence may be required, such as:

• Title papers
• Insurance papers
• Loan documentation

Customers may need to obtain consent from their partner (if applicable) or third party, trust or company who has an interest in the secured property used as security.

Note: when a customer separates from a relationship, there is a risk to the customer’s privacy when updates are made. See Separating safely - protecting personal details before making any updates to personal details.

Customer, (including their partner or a third party co-owner if applicable), who are bankrupt or subject to personal insolvency will be subject to certain provisions around how they can deal with real estate.

Where a partner (if applicable) or third party is bankrupt/insolvent, the Complex Assessment Officer (CAO) as the delegate must consider the risks specified with the real asset(s) being offered as security and be satisfied the value of the specified real property is sufficient to secure repayment of any HEAS loan amount owed to the Commonwealth.

HEAS customers who become bankrupt/insolvent after being granted HEAS, will lose their qualification to continue to receive HEAS loan payments under Social Security Act 1991 - section 1133, Qualification for participation in pension loans scheme.

A customer may notify in writing and upload relevant supporting documents of a potential change to the title of their HEAS secured property, resulting in the title description being changed. Such as:

• subdivision of land
• adverse possession of land
• boundary change

Customers cannot advise these changes through the Change of Circumstance online service or through the Home Equity Access Scheme variation form (SA497). Customers can provide this information:

• using the Upload documents service
• in writing with supporting documents

Changes to the title of a secured property for HEAS purposes requires Services Australia to provide consent.

Services Australia must only provide consent where the Complex Assessment Officer (CAO) as the delegate is satisfied the HEAS debt remains recoverable.

CAOs can provide consent via a Tasking Request.

Depending on the state, territory, and the type of title change taking place, a charge or caveat may need to have the:

• title removed and then replaced, or
• existing charge or caveat may remain in place

Note: any costs associated with a change of title will be added to the HEAS loan balance.

There are 2 ways a customer can limit the amount they can borrow before their HEAS payments stop:

• Nominated Amount – this is an amount of equity in their HEAS property offered as security that the customer would like to be excluded in the calculation of their maximum loan amount (MLA). Reducing the amount of equity, lowers the system calculated MLA
• Nominated MLA – this is an amount customers can choose to borrow up to before their HEAS payments stop. After the system calculates the customer’s MLA based on how much equity they are using (taking into account any Nominated Amount), the customer can then choose to nominate a lower MLA

Customers can:

• choose to have both a Nominated Amount and a nominated MLA at any time
• change their HEAS loan amount via their Centrelink online account , this is the preferred option. If customers do not have online access they can complete a Home Equity Access Scheme variation (SA497) form.

Nominees can:

• make change requests on behalf of their customer however, consent must be provided by the customer and partner (if applicable), before a change payment request is finalised. See Home Equity Access Scheme consent for more details
• If consent has been provided, and the nominee or customer would like to cancel or withdraw their request, they must:
• complete a Home Equity Access Scheme variation (SA497) form, and
• include the customer and partner approval (where applicable)

All HEAS payments the customer receives is added to the HEAS loan balance, and interest accrues on all components (principal, interest and legal costs) of the outstanding HEAS loan balance

The Resources page has a link to the SA497 form.

Customers:

• can request to stop their fortnightly HEAS loan payments
• must nominate a date to stop payments:
• the date can be in the future, and
• up to 12 months in advance
• have 21 days to submit their request. If the request is not submitted within this time frame, the requests will automatically cancel, and the customer must submit a new request
• can withdraw their request before the assessment is finalised

For nominee requests and partnered customer requests, consent must be provided by the customer before a stop payment request is finalised. See Home Equity Access Scheme consent for more details.

If consent has been provided, and the nominee or customer would like to cancel or withdraw their request, they must:

• complete a Home Equity Access Scheme variation (SA497) form, and
• include the customer and partner approval (where applicable)

Interest continues to accrue on the outstanding HEAS loan balance when fortnightly HEAS loan payments stop, until the HEAS loan is repaid in full.

See Settlement of Home Equity Access Scheme (HEAS) loan amounts for details about customers wanting to repay their HEAS loan in full.

Customers can make HEAS repayments via their Centrelink online account at any time. See Repayment of Home Equity Access Scheme (HEAS) loans for more details.

• Customers:
• can request to start their fortnightly HEAS loan payments. The preferred option is via their Centrelink online account
• have 21 days to submit their request. If the request is not submitted within this time frame, the request will automatically cancel, and a new request must be submitted
• can withdraw their request before the assessment is finalised
• Nominee and partnered customer requests:
• consent must be provided. See Home Equity Access Scheme consent for more details
• If consent has been provided, and the nominee or customer would like to cancel or withdraw their request, they must:
• complete a Home Equity Access Scheme variation (SA497) form, and
• include the customer and partner approval (where applicable)

HEAS loan payments the customer receives, are added to the customers HEAS loan balance.

Interest accrues on all components (principal, interest, and legal costs) of the outstanding HEAS loan balance until settled.

The Resources page has a link to the SA497 form.

HEAS customers receiving a qualifying payment or are HEAS Only, who become imprisoned, may still be eligible for Home Equity Access Scheme (HEAS) payments.

Where the agency is notified that a Service Australia customer has been imprisoned, and is identified as receiving HEAS loan payments the Face to Face Incarcerated Customer Servicing Team will help facilitate, the appropriate HEAS form required to be completed:

• Home Equity Access Scheme (HEAS) variation (SA497) for the customer to advise if they wish to continue or stop receiving HEAS payments, and
• Authorising a person or organisation to enquire or act on your behalf form (SS313) for customers who would like to have a Nominee act on their behalf (where required)

The Face to Face Incarcerated Customer Servicing Team will complete a Complex Assessment > Request for CAO action > HEAS Incarceration Fast Note, that will be allocated to Complex Assessment Officers in Region CAO.

The Resources page has a link to the SA497 and SS313 forms.

If customers are unable to use online services, they can advise changes in circumstances using the SA497 form.

• For partnered customers, both members of the couple must sign in writing their agreement to any changes to their HEAS loan
• Both members of the couple must be aware of the terms and conditions of their HEAS loan, including any intended changes, regardless if the partner shares ownership of the real estate used to secure the HEAS loan. For example, where a new asset is added as security, both partners must sign the advice
• If there is a third party/trust or company has interest in a HEAS loan, the third party/trust or company must also agree to any change in writing