Eligibility for the Home Equity Access Scheme (HEAS) 065-19041642

To be eligible for HEAS a customer must be of Age Pension age, or partnered to a person who is of Age Pension age. Age rules for Age Pension are available on the Services Australia website, see Resources page for a link.

Has the customer reached Age Pension age?

• Yes, customer meets the age requirements, go to Step 4
• No, go to Step 2

Is the customer partnered?

• Yes, go to Step 3
• No, customer is not eligible as they have not reached Age Pension age nor partnered to a person of Age Pension age. Go to Step 11

Has the customer's partner reached Age Pension age?

• Yes, customer meets the age requirements. Go to Step 4
• No, customer is not eligible as neither they nor their partner is Age Pension age. Go to Step 11

To be eligible for HEAS the customer must receive or be qualified for a HEAS qualifying payment. The customer is not required to have a payable rate under the income and assets tests. See Assess the qualifying payment status table for the process to determine this criteria.

Does the customer qualify for one of the qualifying payments?

• Yes, customer meets the qualifying payment criteria, go to Step 5
• No, customer is not eligible for HEAS. Go to Step 11

HEAS (Loan Only) is payable to customers that do not get the Age Pension because they fail the income and/or assets test. That is, if they are current or qualify for the Farm Household Assistance (FHA).

Note: FHA is not payable to customers that are entitled to get or are qualified for an age pension, other than participating in HEAS.

See Security for the Home Equity Access Scheme for details about real estate that can be used as security.

Does the customer, or their partner, own real estate in Australia that they are willing to offer as security for the loan?

• Yes, go to Step 6
• No, customer is not eligible for HEAS, go to Step 11

The real estate used to secure the loan must be adequately and appropriately insured. Customers must provide current supporting documentation at the time of claim lodgement, for each real estate property they have offered as loan security.

Does the customer have current supporting documentation, that has adequate and appropriate insurance for each real estate property they have offered as loan security?

• Yes, go to Step 7
• No, customer is not eligible for HEAS, go to Step 11

The customer (the applicant) must declare if they are bankrupt or have a personal insolvency agreement when they submit their loan application. Before approving the application, a Complex Assessment Officer (CAO) conducts a Bankruptcy Register Search (BRS) through Equifax.

Is the customer bankrupt or subject to a personal insolvency agreement?

• Yes, customer is not eligible for HEAS, go to Step 11
• No, go to Step 8

The applicant’s partner (if applicable) or third party (co-owner) must declare if they are bankrupt or have a personal insolvency agreement when they submit their loan application.

Before approving the application, a Complex Assessment Officer (CAO) conducts a Bankruptcy Register Search (BRS) through Equifax.

If the applicant’s partner (if applicable) or third party (co-owner) is bankrupt or subject to a personal insolvency agreement:

• The Complex Assessment Officer (CAO) will need to request from the applicant’s partner (if applicable) or third party (co-owner) bankruptcy or a personal insolvency agreement
  Note: where the 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 they must be satisfied the security offered cannot be called into the bankruptcy or insolvency agreement at a later date as this directly impacts the agency’s ability to recover any loan amounts owed to the Commonwealth
• The CAO is to update or create a DOC that includes:
• Requested Information
• Date of Event Request for Information was sent
• Who the requested information is required from (partner or third party co-owner)
• Dated of Event the Request for information is to be returned, see Request Information (CLK) – Time allowed to respond, for further information
• Hold until date the requested information is to be returned + 1 day
• Once the Requested information has been returned the CAO will need to determine the bankruptcy or a personal insolvency agreement and the risk for the Commonwealths ability to recover a HEAS loan

Note: Complex Assessment Officers (CAOs) may need to contact Level 2 Policy Helpdesk if there is any doubt where a partner (if applicable) or third party is bankrupt/insolvent. The CAO will need to escalate through the appropriate escalation methods using the  Technical Support Model with all relevant information.

Is the applicant’s partner (if applicable) or third party (co-owner) the bankruptcy or a personal insolvency agreement a risk to the Commonwealths to recover a HEAS loan?

• Yes, customer (the applicant) is not eligible for HEAS go to Step 11
• No,  go to Step 9

Has an HEAS loan application already been lodged?

• Yes, the HEAS application will be automatically allocated to a Complex Assessment Officer (CAO) for assessment and processing. See Assessing Home Equity Access Scheme claims for details about the assessment process. Procedure ends here
• No, go to Step 10

Customers (and their partners, if they are a member of a couple) must agree to the HEAS terms and conditions to be eligible. Consent to the terms and conditions is provided through the HEAS loan application.

If the real estate offered by the customer as security for the loan is co-owned by another party other than the customer's partner, or is the asset of a trust or company, written consent is also required from all impacted parties. See Security for a Home Equity Access Scheme for details about third party consent.

If the customer has not already done so, it is recommended they:

• read the terms and conditions on the Services Australia website and make sure they (and their partner, if applicable) have a full understanding of HEAS before to lodging an application
• seek independent legal or financial advice before applying for the HEAS loan

The customer can also access the Financial Information Service (FIS) to discuss HEAS.

If the customer wishes to proceed with an HEAS loan application, they can lodge online via their Centrelink online account. See Claiming a Home Equity Access Scheme loan for more details.

Procedure ends here.

Tell the customer of the reason(s) why they are not eligible for HEAS and document the discussion.

If the customer has already lodged an HEAS loan application, it will be automatically allocated to a CAO for assessment and processing.

Consider other available Centrelink payments, benefits or services the customer may be eligible for.