Home Equity Access Scheme (HEAS) 065-08000000
Expand allCompound interest calculation
- Compound interest:
- automatically calculates in the customer’s regular fortnightly automatic review
- calculates each day, based on the balance ((Principal + Interest from the last entitlement period) + Costs) on the day
- Interest compounds at the end of the entitlement period, and adds to the interest balance at the end of the entitlement period calculation
- HEAS advances are added to the Principal, and accrue interest from the Date of Event they are delivered
- Repayments reduce the balance, and interest is adjusted from the day they are allocated to the legacy system
- Payments made via the Payment Adjustment (PYAJ) screen and/or arrears payments are added to the Principal at the end of the entitlement period. Interest accrues from the end of the entitlement period
Calculation
- Add the accrued Principal, Interest and Costs
- Less repayments made
- Multiply by the interest rate, and
- Divide by 364
Interest for a Day = (Principal + Costs + Interest) – Repayments) x Interest Rate/364
Interest calculates using the previous Entitlement Period End Dates (EPED) balance for first 13 days. Then adding the fortnightly payment on day 14 of the EPED to complete the fortnight’s interest calculation. If there is no fortnightly loan (LON) component, each day calculates based on the previous balance. The interest is added to the total loan balance on a fortnightly basis..
Process Direct screens
Staff can action and view the HEAS details in Process Direct.
Table 1
|
Screen name |
Description |
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Home Equity Access Scheme Summary (HEASS) |
Note: staff can only update the most recent HEAS screen. An error message occurs if staff attempt to make historical updates on a previous page. Select The HEAS screen also shows the current:
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Home Equity Access Scheme Receipts (HEASR) |
The HEASR screen lets staff to search for specific receipts within set periods and shows details about repayments.
Note: this screen only shows repayments from 1 July 2022. |
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Home Equity Access Scheme Advance (HEASADV) |
The HEASADV screen records customer advance payments.
See Advance payments for Home Equity Access Scheme (HEAS) loans for more details. |
on the HEASS screen to see the current and historical payment details:
to see the most recent HEAS screen.Consent requirements
Table 2
|
Scenario |
Approval required |
Notification |
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Customer is single and using service for them self only. |
No |
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Customer is partnered and using self service for them self. Partner has a myGov Inbox. |
Yes, partner approval. |
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Customer is partnered and using service for them self. Partner does not have a myGov Inbox. |
Yes, partner approval. |
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Nominee is acting on behalf of a customer that is single. Customer has a myGov Inbox. |
Yes, customer approval. |
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Nominee is acting on behalf of a customer that is single. Customer does not have a myGov Inbox. |
Yes, customer approval. |
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Nominee is acting on behalf of a customer that is partnered. Customer and partner have a myGov Inbox. |
Yes, customer and partner approval. |
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Nominee is acting on behalf of a customer that is partnered. Customer has a myGov Inbox. Partner does not have a myGov Inbox. |
Yes, customer and partner approval. |
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Nominee is acting on behalf of a customer that is partnered. Customer does not have a myGov Inbox. Partner has a myGov Inbox. |
Yes, customer and partner approval. |
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Nominee is acting on behalf of a customer that is partnered. Customer does not have a myGov Inbox. Partner does not have a myGov Inbox. |
Yes, customer and partner approval. |
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Withdrawal of request before approval is completed |
No approval required. |
Customer or nominee can withdraw their request any time before any approvals are completed. |
|
Withdrawal of request after any approval is completed. |
Approval required. |
Customers are advised they must complete a Home Equity Access Scheme variation form (SA497), and upload it. |
FAQs for staff
Table 3
|
Item |
Description |
|
|
1 |
Question: What is HEAS? Answer: HEAS is a reverse mortgage like loan for older Australians secured against real estate they own in Australia. The agency places a registered charge or caveat against the property title to protect the Commonwealth’s interest. You need to repay the loan payments received and the costs and compound interest. See What is the Home Equity Access Scheme for more details. |
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2 |
Question: Is the loan available as a lump sum? Answer: Yes, from 1 July 2022 See What is the Home Equity Access Scheme for more details. |
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3 |
Question: Am I eligible for a HEAS loan? Answer: You may be eligible for a HEAS loan. See Eligibility for the Home Equity Access Scheme (HEAS) for more details. |
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4 |
Question: Is my partner eligible for a HEAS loan? Answer: Both you and your partner can get a loan under HEAS but you both need to be eligible and apply for it. To see if you or your partner may be eligible, go to the online tool Payment and Service Finder on the Services Australia website. See Eligibility for the Home Equity Access Scheme (HEAS) for more details. |
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5 |
Question: Am I eligible to continue to receive HEAS if I am imprisoned? Answer: yes, you may be entitled to continue to receive Home Equity Access Scheme (HEAS) as a HEAS Only payment while imprisoned. You will need to complete a Home Equity Access Scheme (HEAS) – variation form (SA497) and/or Authorising a person or organisation to enquire or act on your behalf form (SS313) for a Nominee to be added. See Eligibility for the Home Equity Access Scheme (HEAS), Change of Circumstances – Home Equity Access Scheme (HEAS), Nominee or Adding or rejecting a nominee request for more details. |
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6 |
Question: How much loan can I receive? Answer:
The amount of accumulated debt you can build up depends on your age and value of the real estate you offer as security. To see if you might be eligible go to:
See maximum loan amount (MLA) for more details. |
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7 |
Question: Are there any risks involved with the loan? Answer: We recommend you seek independent legal or financial advice. See Eligibility for the Home Equity Access Scheme (HEAS) for more details. |
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8 |
Question: What is the interest rate for the loan? Answer:
You can forecast a future HEAS loan balance:
See HEAS loan balance, legal costs and compound interest for more details. |
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9 |
Question: How can I apply for HEAS loan? Answer:
See Claiming a Home Equity Access Scheme (HEAS) loan for more details. |
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10 |
Question: What documents do I have to provide to support my loan application? Answer: There is a range of information you will need to provide to support your loan application. This includes but is not limited to:
If you have previously provided documents, you may not need to again. Details of these can be found in the HEAS section of the Services Australia website: Supporting documents. See Claiming a Home Equity Access Scheme (HEAS) loan for more details. |
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11 |
Question: Can I change how much loan I receive each fortnight? Answer: Yes.
You can forecast a future HEAS loan balance:
See Rate Payable for more details. |
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12 |
Question: Are there charges or fees for the loan? Answer: Yes. You are responsible for the legal costs with registering and/or removing the charge or caveat against the property title. These costs are added to the HEAs loan debt. Costs start at about $400 and can increase depending on circumstances. We will keep you informed during the application as to the expected costs. You are not responsible for the valuation costs for the properties offered as security in your HEAS loan application. See HEAS loan balance, legal cost and compound interest for more details. |
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13 |
Question: Can I stop and start the loan? Answer: Yes. You can stop and start your loan online or by completing the Home Equity Access Scheme variation form (SA497). You and/or your partner (where applicable) may need to provide consent. If a nominee makes the request, a customer and/or partner (where applicable) will need to provide consent. See Consent required for online requests for more details. |
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14 |
Question: How do I repay the loan? Answer:
Note:
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15 |
Question: Can I get a statement for my loan? Answer: Currently, Services Australia sends an Itemised Loan Statement to customers annually. We will send you an Itemised Statement around your birthday. If you are partnered the statement will be sent around the birthday of the younger partner. Customers that have access to online services View your transaction summary online. Customers can request an itemised statement online from:
Customers that do not have access to online services Staff can issue an itemised statement using the Home Equity Access Scheme Summary (HEASS) in Process Direct.
See HEAS loan balance, legal cost and compound interest for more details. |
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16 |
Question: Is the loan taxable? Answer: No. |
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17 |
Question: Does a HEAS loan affect my pension? Answer: Taking out a HEAS loan will not reduce your pension. Your pension might increase if you are paid under the asset test and the HEAS loan is secured against property that is counted in the assets test. |
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18 |
Question: I am a current HEAS customer; can you tell me my current loan balance? Answer: Yes. Online: Customers can view details online about their HEAS loan, including their HEAS loan balance. These details will show on the Home Equity Access Scheme summary page in the customers Centrelink online account. Staff can go to:
Both screens show the customers:
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19 |
Question: What is a No Negative Equity Guarantee (NNEG)? Answer: See No Negative Equity Guarantee for more details. |
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20 |
Question: Are customers on Farm Household Allowance entitled to HEAS? Answer: Farm Household Allowance (FHA) customers may be eligible to receive Home Equity Access Scheme (Loan Only). It is payable to participants who would not otherwise receive the Age Pension because they fail the income and/or assets test, but are current or qualified under Farm Household Allowance (FHA) qualifications and eligibility. |
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Examples - HEAS fortnightly loan amounts and advance payable
Table 4: this table provides examples of the fortnightly HEAS loan payments (LON component) and lump sum advance payments (LONA component). See Advance payments for Home Equity Access Scheme (HEAS) loans for more details.
The Maximum Pension Rate (MPR) is the sum of the maximum basic rate of pension, and Pension Supplement, Energy Supplement and Rent Assistance (RA) the customer is eligible for under the Pension Rate Calculator. RA paid with Family Tax Benefit (FTB) is not included in the maximum payment rate for HEAS purposes.
The maximum HEAS rate is 1.5 times the MPR (150% equivalent).
These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.
|
Example |
Description |
|
Customer 1 – Single customer with a reduced pension payment rate (I&A test). Single customer elects 150% of MPR |
Age Pension MPR = $987.60 Age Pension actual rate (after I&A tests) = $800 Max HEAS rate = $1,481.40 (MPR x 1.5) Fortnightly LON component (max) = $681.40 (Max HEAS rate – actual rate) ($1,481.40 - $800) |
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Customer 2 – Single customer with a reduced pension payment rate (I&A test) requests the maximum advance Single customer elects 150% of MPR Single customer has requested maximum advance which is 50% of MPR Advance payment $12,838.80 Fortnightly payment: $987.60 Age $800 LON $187.60 |
Age Pension MPR = $987.60 Age Pension actual rate (after I&A tests) = $800 Max HEAS rate = $1,481.40 (MPR x 1.5) Max Advance amount $12,838.80 (MPR x 26 x 50%) Fortnightly deduction from Max HEAS rate for advance paid $493.80 (MPR x 50%) Fortnightly LON component (max) = $187.60 (Max HEAS rate – actual rate – fortnightly deduction for advance) ($1,481.80 - $800 - $493.80) |
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Customer 3 – Single customer with maximum pension payment requests the maximum advance Single customer elects 150% of MPR Single customer has requested maximum advance which is 50% of MPR Advance payment $12,838.80 Fortnightly payment: $987.60 Age $987.60 LON $0 |
Age Pension MPR = $987.60 Age Pension actual rate = $987.60 Max HEAS rate = $1,481.40 (MPR x 1.5) Max Advance amount $12,838.80 (MPR x 26 x 50%) Fortnightly deduction from Max HEAS rate for advance paid $493.80 (MPR x 50%) Fortnightly LON component (max) = $0 (Max HEAS rate – actual rate – fortnightly deduction for advance) ($1,481.80 - $987.60 - $493.80) |
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Customer 4 – Single customer with no pension payable (HEAS only) requests the maximum advance Customer elects fixed rate of $800 Single customer has requested maximum advance which is 50% of MPR Advance payment $12,838.80 Maximum fortnightly loan payment available after advance request $987.60 Age $0 LON $800 |
Age Pension MPR = $987.60 Age Pension actual rate (after I&A tests) = $0 Max HEAS rate = $1,481.40 (MPR x 1.5) Max Advance amount $12,838.80 (MPR x 26 x 50%) Fortnightly deduction from Max HEAS rate for advance paid $493.80 (MPR x 50%) Fortnightly LON component (max) = $987.60 (Max HEAS rate – actual rate – fortnightly deduction for advance) ($1,481.40 - $493.80) Customer will get $800 per fortnight of LON only as this is less than the current maximum fortnightly loan available of $987.60. |
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Customer 5 – Partnered customer with a reduced pension payment rate (I&A test). Partnered customer elects 150% of MPR |
Age Pension MPR = $744.40 Age Pension actual rate (after I&A tests) = $400 Max HEAS rate = $1,116.60 (MPR x 1.5) Fortnightly LON component (max) = $716.60 (Max HEAS rate – actual rate) ($1,116.60 - $400) |
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Customer 6 – Partnered customer with a reduced pension payment rate (I&A test) requests the maximum advance Partnered customer elects 150% of MPR Partnered customer has requested maximum advance which is 50% of MPR Advance payment $9,677.20 Fortnightly payment: $744.40 Age $400 LON $344.40 |
Age Pension MPR = $744.40 Age Pension actual rate (after I&A tests) = $400 Max HEAS rate = $1,116.60 (MPR x 1.5) Max Advance amount $9,677.20 (MPR x 26 x 50%) Fortnightly deduction from Max HEAS rate for advance paid $372.20 (MPR x 50%) Fortnightly LON component (max) = $344.40 (Max HEAS rate – actual rate – fortnightly deduction for advance) ($1,116.60 - $400 - $372.20) |
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Customer 7 – Partnered customer with a maximum pension payment rate requests the maximum advance Partnered customer elects 150% of MPR Partnered customer has requested maximum advance which is 50% of MPR Advance payment $9,677.20 Fortnightly payment: $744.40 Age $744.40 LON $0 |
Age Pension MPR = $744.40 Age Pension actual rate = $744.40 Max HEAS rate = $1,116.60 (MPR x 1.5) Max Advance amount $9,677.20 (MPR x 26 x 50%) Fortnightly deduction from Max HEAS rate for advance paid $372.20 (MPR x 50%) Fortnightly LON component (max) = $0 (Max HEAS rate – actual rate – fortnightly deduction for advance) ($1,116.60 - $744.40 - $372.20) |
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Customer 8 – Partnered customer with no pension payable (Home Equity Access HEAS only) requests the maximum advance Partnered customer elects fixed Home Equity Access HEAS rate of $400 Partnered customer has requested maximum advance which is 50% of MPR Advance payment $9,677.20 Fortnightly payment: $400 Age $0 LON $400 |
Age Pension MPR = $744.40 Age Pension actual rate = $0 Max HEAS rate = $1,116.60 (MPR x 1.5) Max Advance amount $9,677.20 (MPR x 26 x 50%) Fortnightly deduction from Max HEAS rate for advance paid $372.20 (MPR x 50%) Fortnightly LON component (max) = $744.40 (Max HEAS rate – actual rate – fortnightly deduction for advance) ($1,116.60 - $0 - $372.20) Customer will get $400 per fortnight of LON only as this is less than the maximum fortnightly loan available of $744.40 |
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Customer 9 – Partnered customer with no pension payable (Home Equity Access HEAS only) requests the maximum advance Partnered customer elects 120% rate of fortnightly payment Partnered customer has requested maximum advance which is 50% of MPR Advance payment $9,677.20 Fortnightly payment: 120% of MPR = $893.28 Age $0 LON $744.40 |
Age Pension MPR = $744.40 Age Pension actual rate = $0 Max HEAS rate = $1,116.60 (MPR x 1.5) Max Advance amount $9,677.20 (MPR x 26 x 50%) Fortnightly deduction from Max HEAS rate for advance paid $372.20 (MPR x 50%) Fortnightly LON component (max) = $744.40 (Max HEAS rate – actual rate – fortnightly deduction for advance) ($1,116.60 - $0 - $372.20) Customer will get $744.40 per fortnight of LON only as this is the maximum fortnightly loan available of $744.40 once the deduction of $372.20 for the advance payment is included. |
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Customer 10 – Partnered customer with no pension payable (Home Equity Access HEAS only) requests partial advance Partnered customer elects 120% rate of fortnightly payment Partnered customer 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) $5,806.32 Fortnightly payment: 120% of MPR = $893.28 Age $0 LON $893.28 |
Age Pension MPR = $744.40 Age Pension actual rate = $0 Max HEAS rate = $1,116.60 (MPR x 1.5) Advance amount $5,806.32 (MPR x 26 x 30%) Fortnightly deduction from Max HEAS rate for advance paid $223.32 (MPR x 30%) Fortnightly LON component (max) = $893.28 (Max HEAS rate – actual rate – fortnightly deduction for advance) ($1,116.60 - $0 - $223.32) Customer will get $893.28 per fortnight of LON only as requested. |
Forms
Home Equity Access Scheme partner application form (SA310)
Home Equity Access Scheme single application form (SA496)
Home Equity Access Scheme variation form (SA497)
Home Equity Access Scheme review form (SA498)
Authorising a person or organisation to enquire on your behalf (SS313)
Department of Veterans’ Affairs – Home Equity Access Scheme (HEAS) loan application form
Services Australia website
Calculator for Complex Assessment Officers (CAO)
Do not share this attachment externally. See Freedom of Information - Information Publication Scheme.
Home Equity Access Scheme grant and projection calculator
Use 'Save As' work around to download/use attachment.
Appeal codes
Benefit type used for HEAS
HEA- Home Equity Access Scheme.
Original decision codes
Table 5: this table has valid codes to enter into the Internal Review/Explanation Script, when a customer requests a review of decision for HEAS.
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Code |
Description |
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CAN |
Cancellation |
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HLB |
Home Equity Loan balance |
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REJ |
Rejection |
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RAT |
Rate |
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STA |
Start date |
Reasons for original decision codes
Table 6: this table has valid codes to enter into the Internal Review/Explanation Script, when a customer requests a review of decision for HEAS.
|
Code |
Description |
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HAP |
Advance payment amount |
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HCC |
Cost/charges attributed |
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HCG |
Claim grant date |
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HCI |
Calculated interest |
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GIR |
Did not respond to info request |
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HFA |
Fortnightly amount paid |
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HMA |
Maximum loan amount/loan security |
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HMR |
Maximum rate payable |
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HQA |
Qualification |
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HRP |
Restart payment date |
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HTD |
Total Loan amount Owing |