Anne Ruston (SA, Liberal Party, Minister for Families and Social Services) Share this | Hansard source

I thank Senator Abetz for his question. This government is absolutely committed to finding new and innovative ways to support age pensioners and self-funded retirees in their retirement. That's why we're introducing legislation this week to ensure older Australians are supported to use their own resources to maximise their retirement outcomes.

We are delivering on our 2021-22 budget measure and enhancing the Pension Loans Scheme with a $21 million reform package. It's important to point out that the Pension Loans Scheme is available to all Australians who have reached age pension age, and that includes people who are part-pensioners and people who are self-funded retirees. The program can be used for them to top up their retirement income by using some of the equity that they have in their home or other assets and, when their house is sold, the loan is then repaid from those proceeds. The loan amount is paid out fortnightly at the rate of up to 150 per cent of the full age pension. Under the budget reform, we are expanding the scheme through the introduction of lump sum payments. From the middle of next year, people using the Pension Loans Scheme will be able to access up to two annual lump sum advances in any 12-month period up to a total of 50 per cent of the maximum annual rate of the age pension.

The popularity of the Pension Loans Scheme has grown more than five-fold in less two years, as our expansions to the scheme have allowed more retirees to tap into the equity tied up in their homes to pay for additional living expenses. The School of Risk and Actuarial Studies at the University of New South Wales believe access to lump sum payments will increase the attractiveness of the scheme. We know that homeownership has always been the bedrock of our society, and we want to make sure that we give older Australians the confidence to tap into a small proportion of their home equity to make sure that their retirement outcomes are maximised for their own benefits.