Example | Description |
Key definitions and formula | Maximum Pension Rate (MPR) The maximum pension rate used for HEAS advance payments is the sum per annum (p/a) of the: - Maximum basic rate
- Pension Supplement components
- Energy Supplement, and
- Rent Assistance (if the customer gets RA)
The customer's marital status is used to determine the applicable MPR. The customer's MPR can be viewed on the Pension Rate Calculation (PRC) screen. Actual Rate The customer's Actual Rate is the amount of pension payable per fortnight (p/f) after application of the income and asset tests. The customer's actual rate can be viewed on the Pension Rate Calculation (PRC) screen. Maximum available advance amount The available advance payment amount is calculated by: - dividing the customer's annual Maximum Pension Rate (MPR) by 2 (that is, to work out 50% of the MPR), then
- deducting the sum of all advance payment amounts received in the last 26 fortnights (including and before the calculation date)
The customer's available advance amount can be viewed on the Home Equity Access Scheme Advance (HEASADV) screen in Process Direct. Maximum rate for fortnightly loan payments (max HEAS rate) The most a customer can get as a fortnightly loan payment is calculated as follows: - 150% of the MPR p/f (that is, 1.5 times the Maximum Pension Rate per fortnight), minus any of the following:
- direct deduction income
- advance payment deductions
Impact of advance payment on fortnightly loan rate The amount of advance paid to a customer will reduce the maximum fortnightly loan rate. The reduction is calculated by: - dividing the advance payment amount by 26, and
- deducting the amount from the maximum available fortnightly amount
The reduction: - will not cause a customer's maximum fortnightly loan amount to go below their maximum pension rate. This allows customers to use the loan to top-up to their maximum pension rate
- to the maximum fortnightly loan rate may not impact the customer's actual fortnightly loan rate
- is calculated and will show on the HEASADV screen when the requested advance amount is coded
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Customer 1, single: - reduced pension rate requests the maximum advance
- elects 150% of MPR
- has requested maximum advance which is 50% of MPR
- advance payment $14,877.20
- fortnightly payment: $1,144.40
- Age Pension $800
- LON $344.40
| - Age Pension Maximum Pension Rate (MPR) = $1,144.40 per fortnight (p/f)
- Age Pension actual rate (after the application of the income and assets (I&A) tests) = $800
- Maximum loan rate p/f = $1,716.60 (MPR x 1.5)
- Maximum Advance amount $14,877.20 (MPR x 26 x 50%)
- Fortnightly deduction from Max HEAS rate for advance paid $572.20 (advance paid / 26)
- Fortnightly LON component (max) = $344.40 (Max HEAS rate - actual rate - fortnightly deduction for advance) ($1,716.60 - $800 - $572.20)
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Customer 2, single: - with maximum pension payment requests the maximum advance
- elects 150% of MPR
- has requested maximum advance which is 50% of MPR
- advance payment $14,877.20
- fortnightly payment: $1,144.40
- Age Pension $1,144.40
- LON $0
| - Age Pension MPR = $1,144.40
- Age Pension actual rate = $1,144.40
- Max HEAS rate = $1,716.60 (MPR x 1.5)
- Max Advance amount $14,877.20 (MPR x 26 x 50%)
- Fortnightly deduction from Max HEAS rate for advance paid $572.20 (advance paid / 26)
- Fortnightly LON component (max) = $0 (Max HEAS rate - actual rate - fortnightly deduction for advance) ($1,716.60 - $1144.40 - $572.20)
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Customer 3, single: - no pension payable (HEAS only customer) requests the maximum advance and a fortnightly HEAS loan of $800
- has requested maximum advance which is 50% of MPR
- advance payment $14,877.20
- fortnightly loan payment requested: $800
- maximum loan payment available $1,144.40
- Age Pension $0
- LON $800
| - Age Pension MPR = $1,144.40
- Age Pension actual rate (after I&A tests) = $0
- Max HEAS rate = $1,716.60 (MPR x 1.5)
- Max Advance amount $14,877.20 (MPR x 26 x 50%)
- Fortnightly deduction from Max HEAS rate for advance paid $572.20 (advance paid / 26)
- Fortnightly LON component (max) = $1,144.40 (Max HEAS rate - actual rate - fortnightly deduction for advance) ($1,716.60 - $0.00 - $572.20)
Note: customer will get $800 per fortnight of LON only, as this is less than the maximum fortnightly loan available of $1,144.40 |
Customer 4, partnered: - with a reduced pension payment rate (I&A test)
- elects 150% of MPR
| - Age Pension MPR = $862.60
- Age Pension actual rate (after I&A tests) = $400
- Max HEAS rate = $1,293.90 (MPR x 1.5)
- Fortnightly LON component (max) = $893.90 (Max HEAS rate - actual rate) ($1,293.90 - $400)
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Customer 5, partnered: - with a reduced pension payment rate (I&A test) requests the maximum advance
- elects 150% of MPR
- has requested maximum advance which is 50% of MPR
- advance payment $11,213.80
- fortnightly payment: $862.60
- Age Pension $400
- LON $462.60
| - Age Pension MPR = $862.60
- Age Pension actual rate (after I&A tests) = $400
- Max HEAS rate = $1,293.9 (MPR x 1.5)
- Advance amount paid $11,213.80 (MPR x 26 x 50%)
- Fortnightly deduction from Max HEAS rate for advance paid $431.30 (advance paid / 26)
- Fortnightly LON component (max) = $462.60 (Max HEAS rate - actual rate - fortnightly deduction for advance - actual pension payment) ($1,293.90 - $400 - $431.30)
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Customer 6, partnered: - with a maximum pension payment rate requests the maximum advance
- elects 150% of MPR
- has requested maximum advance which is 50% of MPR
- advance payment $11,213.80
- fortnightly payment: $862.60
- Age Pension $862.60
- LON $0
| - Age Pension MPR = $862.60
- Age Pension actual rate = $862.60
- Max HEAS rate = $1,293.90 (MPR x 1.5)
- Advance amount paid = $11,213.80 (MPR x 26 x 50%)
- Fortnightly deduction from Max HEAS rate for advance paid $431.30 (advance paid / 26)
- Fortnightly LON component (max) = $0 (Max HEAS rate - actual rate - fortnightly deduction for advance) ($1,293.90 - $862.60 - $431.30)
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Customer 7, partnered: - with no pension payable (HEAS only customer) requests the maximum advance
- elects fixed HEAS rate of $400
- requested maximum advance which is 50% of MPR
- advance payment $11,213.80
- fortnightly payment: $400
- Age Pension $0
- LON $400
| - Age Pension MPR = $862.60
- Age Pension actual rate = $0
- Max HEAS rate = $1,293.90 (MPR x 1.5)
- Advance amount paid $11,213.80 (MPR x 26 x 50%)
- Fortnightly deduction from Max HEAS rate for advance paid $431.30 (advance paid / 26)
- Fortnightly LON component (max) = $862.60 (Max HEAS rate - actual rate - fortnightly deduction for advance) ($1,293.90 - $0 - $431.30)
Note: customer will get $400 per fortnight of LON only, as this is less than the maximum fortnightly loan available of $862.60. |
Customer 8, partnered: - with no pension payable (HEAS only customer) requests the maximum advance
- elects 120% rate of fortnightly payment
- has requested maximum advance which is 50% of MPR
- advance payment $11,213.80
- fortnightly payment: 120% of MPR = $1,035.12
- Age Pension $0
- LON $862.60
| - Age Pension MPR = $862.60
- Age Pension actual rate = $0
- Max HEAS rate = $1,293.90 (MPR x 1.5)
- Advance paid $11,213.80 (MPR x 26 x 50%)
- Fortnightly deduction from Max HEAS rate for advance paid $431.30 (advance / 26)
- Fortnightly LON component (max) = $862.60 (Max HEAS rate - actual rate - fortnightly deduction for advance) ($1,293.90 - $0 - $431.30)
Note: customer will get $862.60 per fortnight of LON only, as this is the maximum fortnightly loan available of $862.60. That is, once the deduction of $431.30 for the advance payment is included. |
Customer 9, partnered: - no pension payable (HEAS only customer) requests partial advance
- elects 120% rate of fortnightly payment
- 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) $6728.28
- fortnightly payment: 120% of MPR = $1,035.12
- Age Pension $0
- LON $1,035.12
| - Age Pension MPR = $862.60
- Age Pension actual rate = $0
- Max HEAS rate = $1,293.90 (MPR x 1.5)
- Advance amount $6,728.28 (MPR x 26 x 30%)
- Fortnightly deduction from Max HEAS rate for advance paid $258.78 (advance paid / 26)
- Fortnightly LON component (max) = $1,035.12 (Max HEAS rate - actual rate - fortnightly deduction for advance) ($1,293.90 - $0 - $258.78)
Note: customer will get $1,035.12 per fortnight of LON only as requested. |
Advance request where customer nominated a Maximum loan amount (MLA) less than the system generated MLA | - The customer is partnered
- maximum Advance Payment that can be requested is $10,747.10
- Customer advised a Maximum Loan Amount of $20,000
- Current balance is $12,000
- Customer will have $8,000 available to request as an Advance Payment
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