Social Services and Other Legislation Amendment (Pension Loans Scheme Enhancements) 2021

# Pension Loans Scheme Enhancements Bill 2021 ## What it does The government is removing a protection that prevented retirees from owing more on a pension loan than their home is worth. It's also letting people access loan payments upfront instead of waiting for regular instalments. These changes apply to people over pension age who borrow against their home under the Pension Loans Scheme. ## Why it matters Removing the "no negative equity" safeguard means retirees could potentially end up in debt if their home value drops significantly while they're repaying. The upfront payment option gives older Australians faster access to cash when they need it, but they'll still be repaying the loan from their pension. ## Key details - **Starts 1 July 2022** — These changes took effect from mid-2022 - **No more debt protection** — The government removed the guarantee that stopped people owing more than their home's value, shifting more financial risk to borrowers - **Who's affected** — Retirees aged 60+ (or 55+ for some veterans) using the Pension Loans Scheme, which lets them borrow money secured against their home without selling it

🔒 Voting closed — this bill has been decided by parliament