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Application for Pension Loans Scheme

Applicants for Pension Loans Scheme

Applicants usually fall into 3 groups:

  • current part-rate pensioners,
  • persons whose pension claim was previously rejected under the income and assets tests, or
  • persons who have lodged a pension loans scheme claim on the assumption that they would not be eligible for a pension.

If a person has not previously applied for a service pension or partner income support supplement, basic eligibility for such pension must be established for the person to participate in the scheme.    

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Participation in the scheme – part rate pensioners

Pensioners receiving a part-rate pension can use the scheme to top-up their pension payments:

  • to the maximum rate they would be entitled to if the income/assets test were not applied (less any remote area allowance), or
  • to any lesser rate they nominate.     More ?
Participation in the scheme – non pensioners

Persons who do not receive pension due to the combined income/assets test but who can satisfy either the income test or the assets test, can use the scheme in a similar manner to obtain a substitute for pension payments.    

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Pension Loans Scheme application form



The Pension Loans Application form gives DVA the authority to collect information to establish whether or not a person meets the eligibility criteria for pension loans scheme. The application form is a contract between DVA and the applicant and states:

  • any property nominated for exclusion from the calculation of the amount of loan available,
  • the interest rate that is to be charged on the loan,     More ?
  • any nominated guaranteed amount to be excluded from the value of secured assets available for settlement of the loan,
  • the charge against any of the person's property used as security for the loan, and     More ?
  • the rate of loan paid each fortnight.
Completing the Pensions Loan Scheme application form


A person who wants to apply for the pension loans scheme must complete the Pension Loans Application form. The applicant must sign the application form in order to agree to the terms of the loan. If only one member of a couple applies for a loan, both members must sign the application form even though only one member of the couple may be accessing the scheme. The contract is binding on both members of a couple.

Pension Loans Scheme interviews

An interview is conducted in all cases to:

  • ensure that the applicant is fully aware of all the terms and conditions associated with the pension loans scheme payments and the debt,
  • negotiate any problems, and
  • obtain the signed agreement of the applicant to the terms of the loan on both the application form and on any interview notes which record the explanation of the loan conditions to the person/s.

Application of interest to a pension loan

5.4.4/Management and Maintenance of Pension Loans

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Charge placed on the security for a pension loan

5.4.4/Security for Pension Loans

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Section 52ZD(1) VEA - Need to make a request to participate in the scheme

Section 52ZD(2) VEA - Who is required to sign request to participate in scheme

Section 52ZD(3) VEA - Form of request to participate in scheme

VEA ? (go back)

A service pension is an income support payment broadly equivalent to the social security age and disability support pensions. It may be paid once a veteran or partner has reached the nominated age or is incapacitated for work.

A person's 'partner' is someone who is a member of a couple with that person.

ISS is an income support payment that may be paid to eligible war widows and widowers under the VEA and persons receiving wholly dependent partners' compensation under the MRCA, and who satisfy the means tests. It is an indexed rate, increased twice-yearly in March and September in line with changes to the cost of living and/or average wages. Income Support Supplement (ISS) legislation commenced on 20 March 1995. It is a payment created to replace the ceiling rate income support age, carer, wife and disability support pensions, paid to war widows/widowers by Centrelink.



The Department of Veterans' Affairs.

A guaranteed amount is the minimum amount (if any) that a pension loan scheme participant or their estate is entitled to retain from the proceeds of the enforcement of a charge on their assets by the Commonwealth. Any guaranteed amount is to be specified by the participant in the scheme.