
Division 296 tax revisited
November 5, 2025
Renting your holiday home
November 5, 2025For many older Australians, having wealth tied up in the
family home can make day-to-day expenses challenging. The Home Equity Access
Scheme (HEAS) is a government-backed program that allows eligible seniors to
unlock some of the value in their home without selling it.
What is HEAS?
HEAS is essentially a reverse mortgage run by the
Australian Government. If you are of age pension age and own real estate in
Australia, you can apply for regular loan payments from the government. These
payments come in either fortnightly instalments or up to two lump sums per
year.
It’s designed to help retirees who may not qualify for a
full pension or who need extra income. The loan is secured against your
property and is not considered taxable income. You don’t need to make
repayments while you're alive, though interest does accumulate.
Who can apply?
You may be eligible if:
- You are age pension
age.
- You or your partner
own real estate in Australia.
- You receive a part or
no pension, or would qualify if not for the assets or income test.
- You’re not bankrupt
and your property is properly insured.
Even self-funded retirees can access this scheme, as long
as they meet the age and property requirements.
How much can you borrow?
You can receive:
- Fortnightly payments
up to 150% of the full age pension.
- Advance lump sums up
to 50% of the annual age pension, taken once or split into two payments
every 26 fortnights.
The total amount you can borrow depends on your age and
the value of your home. The government uses a formula that includes an
age-based component, so older applicants can usually borrow more.
You can also nominate an amount to exclude from your
property value if you want to preserve equity and leave something for your
family.
What about interest and repayment?
The current interest rate is currently 3.95% per annum
(compounding fortnightly). The loan does not need to be repaid until:
- You sell the property.
- You pass away.
- You choose to repay
early.
When the loan ends, your estate or surviving partner will repay the debt. The scheme’s “No Negative Equity Guarantee” ensures that you’ll never owe more than your home is worth.
Key benefits
- No regular repayments
required during your lifetime.
- You remain the owner
of your home.
- Flexibility to adjust
or stop payments.
- Peace of mind through
the No Negative Equity Guarantee.
Things to consider
Before applying, think about:
- How much of your home
equity you’re willing to give up.
- The long-term impact
on your estate and inheritance.
- Alternative options
like downsizing or private loans.
- Making sure your
property stays well maintained and insured.
Final word
HEAS can be a smart way to boost your retirement income
while staying in your home. But it’s a long-term decision. If you would like to
know more, give us a call so we can weigh your options carefully to make sure
it suits your lifestyle and future plans.

