Advance payments for Home Equity Access Scheme (HEAS) loans 065-22051321

To action an advance change request, there must be an existing loan.

HEAS trained streaming Service Officers must check for an existing HEAS loan in Process Direct:

• Select the HEAS screen
• Search for existing loans

If a loan shows on the HEAS screen and the advance request was submitted in:

• a Home Equity Access Scheme partnered application form (SA310) or Home Equity Access Scheme single application form (SA496):
  • The application form can be accepted
  • The customer must be contacted to confirm acceptance of the advance request, and to advise the correct advance application process for future requests
  • Document the customer discussion details in the finalisation advance Fast Note
  • The SA310 or SA496 must be cancelled and the advance request manually coded to prevent a second loan. The question set in the new application can be used for the advance request
  • Go to Step 2 and follow the instructions for Home Equity Access Scheme variation form (SA497)
• an online new application request:
  • The application form can be accepted
  • The customer must be contacted to confirm acceptance of the advance request, and to advise the correct advance application process for future requests
  • Document the customer discussion details in the finalisation advance Fast Note
  • The online new application must be marked as Not Required and the advance request manually coded to prevent a second loan. The question set in the new application can be used for the advance request.
    Note: do not mark the online new application as Not Required until it is determined the advance can be finalised
  • Go to Step 2 and follow instructions for online change requests
• an online change request or in an SA497, go to Step 2

If a loan does not show on the HEAS screen, the customer or nominee must lodge a new application for HEAS to request an advance payment. See Claiming a Home Equity Access Scheme (HEAS) loan

If the customer requested a HEAS advance request:

• online, go to Step 3
• in a completed SA497, go to Step 4

For online advance requests, in Process Direct:

• Select the work item
• Select to review the details entered by the customer

Note: customers must answer more questions if it has been more than 13 weeks since they were paid a HEAS fortnightly loan payment, or an advance payment.

If a customer is partnered and the partner has also requested an advance lump sum, code the activities separately.

If the work items have not automatically bundled:

• allocate the partner's work item through Work Optimiser, and
• assess both HEAS advance requests

Go to Step 5.

For SA497 requests:

• Select the Documents tab to confirm that:
  • all required consent has been provided if the customer is partnered or the nominee submitted the SA497
  • a Home Equity Access Scheme review form (SA498) has been submitted with the SA497, if the customer was required to answer the additional questions
• If the customer and partner (if applicable) have not provided consent for the advance request, staff must:
  • Issue a Request for Information (RFI) to request the completion of specific mandatory consent questions
  • Make genuine attempts to contact the customer to advise an RFI has been issued
  • Create an open Fast Note. Use Fast Note - select Auto text, use Older Australians > Home Equity Access Scheme > SA497 Advance
  • Allocate the started Fast Note work item through Work Optimiser
  • Place the work item on hold pending receipt of request information
  • Close the SA497 digital work item by marking it as completed
• Reject the request if the requested information has not been returned by the due date

If the customer is partnered and the partner has also requested an advance lump sum, code separate activities.

If the work items have not automatically bundled:

• allocate the partner's work item through Work Optimiser, and
• assess both HEAS advance requests

HEAS trained streaming Service Officers must report if they identify:

• any concerns about a customer's advance payment request, or
• fraud or corruption

For more details, see Report suspected fraud and corruption.

Before processing an advance payment:

• Check for any changes to the payment destination (PAS) screen
• When an update has been made within 30 days, confirm the correct payment details by making genuine attempts to contact the customer before finalising the request:
  • Clearly annotate any contact
  • If contact is unsuccessful, send a Request to contact letter (Q164), advising the customer to contact Services Australia and confirm their payment destination
  • Hold the work item for 14 days

If the customer confirmed their payment destination, go to Step 6.

If the customer has not confirmed their payment destination in an:

• online request:
  • Change the status to Cancel
  • Document the record with the reason the status was changed. Close the Fast Note
  • Procedure ends here
• SA497 request:
  • Mark the SA497 and SA498 (if required) as completed
  • Document the record with the reason it was marked as completed. If an SA497 Advance Fast Note was created, close the Fast Note
  • Procedure ends here

Customers may advise of other changes to their circumstances within the advance payment request. These can include:

• start, stop or change fortnightly amount, or
• add or change security property, or
• add or change maximum loan amount, or
• add or change nominated amount

If the customer advised a change to their circumstances, provisional data shows on a new line, with the date of effect as the date of request.

To view the Loan Details (HEAS) screen, select:

• Expand
• Edit

Review the customer's circumstances for the following criteria:

• Loan Security Value - if the customer has advised a change to their 'Loan Security Value' since the last formal valuation was done, a new formal valuation may be required
• Maximum Loan Amount (MLA) - if the customer has reached, or the requested HEAS advance loan amount exceeds the existing MLA, an error will show on submission of the claim activity. See Change of circumstances - Home Equity Access Scheme
• Deductions - if the customer has advised the security property has an encumbrance recorded against it, Complex Assessment Officers (CAO) must update the details. This includes any:
  • loan
  • mortgage
  • reverse mortgage
  • life interest
  • line of credit, or
  • other encumbrance

If the customer requested any of the above circumstance changes in an:

• online change request:
  • Create a Fast Note. Use Fast Note > select Auto Text > use Older Australians > Home Equity Access Scheme > HEAS Advance Approved/Rejected/Escalated
  • Document the escalation details and close the Fast Note
  • Escalate the request to a CAO for assessment
  • Go to keywords screen in Process Direct, select keyword HEASTFR. This will adjust the work item to the correct skill set
  • Place the work item on hold for one day
  • Unassign the work item using reason code 2nd Contact Required. There is no need to monitor the work item. When it is due, it reallocates automatically based on capability
  • Procedure ends here
• online new application request:
  • In Notes in Process Direct, document the details for CAO escalation and include customer contact
  • Escalate to a CAO for assessment. Use the WLM Technical Assistance - Form - New Item for the work to be recategorised
• SA497:
  • Create a Fast Note. Use Fast Note - select Auto text, use Older Australians > Home Equity Access Scheme > SA497 Advance
  • Document the escalation details and leave the Fast Note open
  • The Fast Note will escalate the request to a CAO for assessment
  • Mark the SA497 and SA498 (if required) as completed

If the customer did not request any of the above circumstance changes, go to Step 7.

Customers must answer additional questions if it has been more than 13 weeks since they were paid:

• a HEAS fortnightly loan payment, or
• an advance payment

If a customer has not received a fortnightly loan payment or a lump sum within the last 13 weeks, the online request or the SA498 will ask the following questions:

• Relationship status - has there been any change to their relationship status since they last recorded their status?
• Property details - confirm or provide the property address used as security against the loan and include the following:
  • Do they still have ownership interest in the property?
  • What is the estimated current market value of the property?
  • Is the property larger than 2 hectares (5 acres)?
  • Who are the listed property title holders? What percentage do they own?
  • Are there circumstances affecting the value of the property?
  • Is the property mortgaged or encumbered?
  • Are they or any co-owners of the property bankrupt or subject to a personal insolvency agreement?
  • Is the property adequately and appropriately insured?
  • Do they intend to take additional loans or mortgages on the property in the future?

If the customer needs to answer additional questions in an:

• online change request:
  • If required, issue an RFI and advise to complete the additional questions in the SA498
  • Make genuine attempts to contact the customer to advise an RFI has been issued
  • Create a Fast Note. Use Fast Note > select Auto Text > use Older Australians > Home Equity Access Scheme > HEAS Advance Approved/Rejected/Escalated
  • Document the escalation details and close the Fast Note
  • Escalate the claim to a CAO for assessment
  • Go to keywords screen in Process Direct, select keyword HEASTFR. This will adjust the work item to the correct skill set
  • Place the work item on hold for one day if additional questions have been provided or 22 days if an RFI was issued
  • Un-assign the work item using reason 2nd Contact Required. There is no requirement to monitor the work item. When it is due, it reallocates automatically based on capability
  • Procedure ends here
• online new application request:
  • In Notes in Process Direct, document the details for CAO escalation and include customer contact
  • Escalate to a CAO for assessment. Use the WLM Technical Assistance - Form - New Item for the work to be recategorised
• SA497 request:
  • If required, issue an RFI and advise to complete the additional questions in the SA498
  • Make genuine attempts to contact the customer to advise an RFI has been issued
  • Create an open Fast Note. Use Fast Note - select Auto text, use Older Australians > Home Equity Access Scheme > SA497 Advance
  • Document the escalation details
  • Place the Fast Note on hold for 22 days if an RFI was issued
  • The Fast Note will escalate the request to a CAO for assessment
  • Mark the SA497 and SA498 (if required) as completed
  • Procedure ends here

If the customer does not need to answer additional questions, go to Step 8.

When coding an Advance Lump Sum request, the:

• date of receipt is the date the HEAS National Team processes the activity. Advance lump sum requests cannot be backdated
• system automatically records the HEAS advance lump sum on the Direct Investments (SVDI) screen as an exempt direct investment, when the HEAS loan is secured by the customer’s principal residence

On completion of the advance activity:

• the HEAS loan principal balance amount is updated with the advance payment details from the advance payment delivery date
• the SVDI screen coding is updated the day after the HEAS payment is finalised
• a Manual follow up (MFU) is created to send a reminder letter 69 days after delivery of the advance amount, for customers to update their income and assets
• if the customer does not update the information, the advance amount is included in the asset test 90 days after delivery

Customers must meet the eligibility criteria to apply for a HEAS advance loan payment.

Once eligibility is met, the customer may be entitled to a HEAS advance payment if all the following apply:

• the HEAS loan balance is less than the lowest of:
  • MLA, or
  • the customer's nominated MLA. See the Resources page for an example
• the customer has not already had 2 HEAS advance payments in the past 26 fortnights
• there is an available HEAS advance amount. The most a customer can advance in any 26-fortnight period is 50% of their annual maximum pension rate

Is the customer eligible for a HEAS Advance payment?

• Yes, go to Step 10
• No, reject the claim Advance claim rejected (ARJ). See Table 1 in the HEAS trained streaming Service Officer subtab in Processing applications for Home Equity Access Scheme (HEAS)

Staff must check that consent has been provided when the:

• customer is partnered
• request is completed by a correspondence nominee

If all required consent has been provided, go to Step 11.

If all required consent has not been provided in an:

• online request:
  • In Process Direct, issue an RFI through the Request Documents option
  • Place the work item on hold, pending receipt of the requested information
• SA497 request:
  • In Process direct, issue an RFI through the Request Documents option
  • Create an open Fast Note. Use Fast Note - select Auto text, use Older Australians > Home Equity Access Scheme > SA497 Advance
  • Place the Fast Note on hold, pending receipt of the requested information
  • Allocate the started work item through Work Optimiser
  • Mark the SA497 and SA498 (if required) as completed

If the requested information has not been returned by the due date and the request is to be rejected, see  Table 1 in the HEAS trained streaming Service Officer subtab in Processing applications for Home Equity Access Scheme (HEAS).

In Process Direct, select Edit to view or edit the HEASADV screen.

Check the Advance loan amount the customer has requested within the Process Direct slider or SA497 variation form.

Before selecting Assess, check the following are correct:

• Advance Payment Amount - amount the customer has requested
• Maximum Advance Payment Amount - the customer's amount of entitlement

The system automatically calculates the maximum HEAS advance amount available to the customer. The HEAS advance amount keyed must be equal to, or less than this amount.

If the HEAS advance loan amount is requested in an:

• online change request, the amount will show as provisional data
• SA497or online new application request, staff must manually code the HEAS advance amount

Note: if the advance was requested by an online new application, the application must be marked as Not Required to prevent a second loan.

Staff must make genuine attempts to contact the customer if they have requested more than the system calculated maximum advance amount. Tell the customer the maximum advance amount they can request.

The customer can:

• request another amount. A new amount cannot be accepted verbally. They must give:
  • written consent on an amended SA497, or 
  • a written letter of request, hand signed and dated by the customer and partner (if applicable)
• withdraw the request. To withdraw the request:
  • staff must be satisfied with the customer's (or nominee's) identity before actioning the withdrawal. See Authenticating a Centrelink customer.
    Do not accept verbal withdrawal if the customer's partner has already provided consent. Return to Table 1 > Step 5 for more details
  • reject the HEAS application with reason Customer Request (CLR).
    Note: this is an approved workaround. Do not withdraw the HEAS application by changing the status via the Status icon, as a letter will not generate to the customer to confirm the withdrawal
• give written consent for a new amount. Staff must place the Advance loan request activity on hold. In Process Direct, select the Status icon and update as follows:
  • Status - On Hold
  • On Hold reason - Request for Information
  • On Hold Expiry Date - 14 days in the future

If the customer is partnered and the partner has also requested an Advance Lump Sum, code separate activities.

The date of decision is the system date the advance assessment activity is finalised.

If the activity is started and not finalised on the same day, the decision date is the date the activity is Completed.

For example, if the activity was started on 09/07/2024 and not finalised until 11/07/2024 the decision date is 11/07/2024.

This date is recorded as the actual date the advance is assessed and is used for the immediate payment processing and delivery of the Advance Lump Sum.

Grant date/start date determination

The grant date of the HEAS Advance payment is the latest of the following dates:

• Request Date
• Customer's current Entitlement Period Start Date (EPSD) (based on the current system date)
• Latest confirmed change to the Maximum Pension Rate (on or before the system date)

Due to a system limitation, do not complete the finalisation on the customer's Entitlement Period End Date (EPED). The system does not correctly recognise the advance amount being paid to the customer.

The grant date cannot be a future date:

• To determine the grant date, the system finds the EPSD of the current entitlement period
• Consideration is given to any of the following changes in the same period:
  • changes to Marital status
  • changes to Rent Assistance
  • increase to Pension Basic rate - CPI dates are 20 March or 20 September

When any of these changes have effective dates within the entitlement period, the advance grant date is set to the latest of all dates. This is to make sure the customer is paid the lump sum based on their correct rate of payment.

Does the grant date fall on EPED?

• Yes:
  • staff must allocate the work item to themselves through Work Optimiser
  • hold the work item for +1 day
  • when the work item comes off hold, continue processing the advance
• No, process the advance request

Before finalising the activity, select Assess. The Entitlements (ELD) screen will show the provisional outcome.

If the outcome is not correct, edit the relevant coding changes.

To manually add/edit the provisional HEAS advance payment amount, select Edit

Is the HEAS Advance payment to be granted?

• Yes, go to Step 15
• No, go to Table 1 in the HEAS trained streaming Service Officer subtab in Processing applications for Home Equity Access Scheme (HEAS)

If the customer currently gets a fortnightly HEAS loan payment:

• The loan (LON) component is recalculated and the advance amount subtracted from their maximum entitlement
• A new fortnightly loan amount is calculated and applied from the date of grant of the HEAS advance

If error E049PH - Current loan does not exist for this Link ID presents, escalate the advance to a CAO for completion.

To complete the HEAS Advance loan payment request:

• Select Finalise. A dialog box shows and confirms the work item has finalised successfully
• Update the Fast Note pop-up to include the relevant HEAS Advance information. Use the HEAS Advance Approved/Rejected/Escalated Fast Note
• A letter automatically generates and is sent to the customer with the grant outcome. To view the letter, go to Customer First Outbound Correspondence

After overnight processing of grant outcomes, the HEAS advance payment is added to the customer's HEAS loan balance on the HEAS screen.

When the HEAS loan is secured against the customer's principal home, the HEAS advance payment is recorded on the SVDI screen as Investment Type HEAS.