Ken Wyatt (Hasluck, Liberal Party, Minister for Indigenous Australians) Share this | Hansard source

Firstly, I would like to thank those members and senators who have contributed to this debate on the Social Services and Other Legislation Amendment (Pension Loans Scheme Enhancements) Bill 2021. The Australian government announced measures to further enhance the flexibility of the Pension Loans Scheme in the 2021-22 budget. The Pension Loans Scheme enables senior Australians of age pension age to supplement their retirement income by increasing the equity in their home. This bill will introduce to the Pension Loans Scheme a no negative equity guarantee, which means that participants will not need to repay more than the equity in their property used to secure their loan when settling their debt. The guarantee is in addition to the strong safeguards already in place to minimise the chance of someone's debt ever exceeding their equity.

This bill also introduces the option for Pension Loans Scheme participants to access a portion of their annual loan payment, usually received as a fortnightly instalment, as a capped lump sum advance. This bill demonstrates the government is continuing to support senior Australians by providing them with greater flexibility in how they draw on their real estate assets to support their living standards in retirement if they choose to do so. To complement the changes made to the Pension Loans Scheme through this bill, the government will also raise awareness of the Pension Loans Scheme so senior Australians are aware of all the options they have to improve their living standards in retirement.

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