The family home has a lot of memories for many Australian retirees and it also has a lot of untapped wealth Centrelink has sent out a new reminder that older Australians who are eligible may be able to get up to $250,000 in tax-free cash from their home equity without selling or moving This is because living costs are still rising.
The option is meant to help retirees pay for things like everyday expenses medical bills or just have a more comfortable retirement especially since their savings are running out faster than they thought they would.
What Centrelink is Reminding You
The federal government is using Centrelink to get retirees to think about whether they are fully using the Home Equity Access Scheme HEAS.
This program lets older Australians who qualify get a part of the equity in their home as voluntary tax-free payments Some important parts of the plan are:
- Get up to $250,000 all at once
- You can choose to make payments every two weeks if you want.
- You don’t have to pay back the money you borrowed during your lifetime.
- The retiree still owns the home completely.
- The loan is paid back when the house is sold or from the estate.
Why the Reminder is Important Right Now
According to Centrelink data thousands of eligible retirees are not using the program even though costs are going up in areas like:
- Energy and utilities
- Costs for medicine and medical care
- Repairs and maintenance around the house
- Rates for insurance and the council
A spokesperson for Centrelink said that many retirees are asset-rich but cash-poor The program is meant to give people more options without making them change their way of life.
How much can you really get to?
The Home Equity Access Scheme lets you:
- As regular payments retirees can get up to 150% of the maximum Age Pension rate.
- They can also ask for a one-time payment of up to $250,000 The real amount depends on how old you are how much your home is worth and whether or not you can get a pension.
- The loan is backed by the home but there is a no-negative-equity guarantee which means that retirees will never owe more than what their home is worth.
The Real Stories Behind the Plan
Margaret 72 from Adelaide said that the lump sum option helped her stay on her own.
She said My roof needed repairs right away and my pension just wasn’t enough This meant I didn’t have to sell my house or ask my kids for help.
John and Elaine both in their late 70s live in Brisbane and get extra money every two weeks to help pay for groceries and medical bills.
Statements from the government and Centrelink
Officials at Centrelink stress that the program is optional and closely watched.
The government says the plan is not a replacement for the Age Pension but rather a supplement.
Is It Worth It? An Expert’s Opinion
Financial advisers say that the plan isn’t right for everyone but it can be useful in some cases.
- Interest is charged and grows over time.
- It could lower the value of the estate that the beneficiaries will get.
- While payments stay within limits it doesn’t change who can get the Age Pension.
Alan Hughes an expert on retirement said For retirees who don’t have a lot of money but own valuable property this can make life a lot better.
Who Can Apply?
You might be able to get it if you:
- Are 65 years old or older
- Have property in Australia that can be used as collateral
- Meet the requirements for residency
- Get the Age Pension or pay for your own retirement.
You don’t have to be getting the Age Pension to apply which is important.
Lump Sum vs. Fortnightly Payments: A Comparison
| Option | What It Offers | Best For |
|---|---|---|
| Lump sum | Up to $250,000 cash | Repairs, medical costs, major expenses |
| Fortnightly payments | Regular income boost | Day-to-day living costs |
| Combination | Both options together | Flexible financial planning |
What retirees should know before they apply
Before you can use your home equity:
- Think about talking to a financial advisor.
- Talk about your plans with family members.
- Learn how interest builds up over time.
- Think about how much equity you want to keep. Each application is looked at on its own and retirees can change or stop payments at any time.
