For many Australian retirees, the family home is not just a place filled with memories — it is also one of their biggest financial assets. With everyday expenses rising and fixed incomes under pressure, Centrelink is reminding older Australians that they may be able to unlock up to $250,000 in tax-free funds using the value of their home, without needing to sell or downsize.
This option offers retirees greater financial flexibility, helping them manage daily living costs, healthcare expenses, or simply enjoy a more secure retirement. As savings reduce faster due to inflation and higher bills, tapping into home equity is becoming an increasingly practical solution for many households.
Centrelink Encourages Use of Home Equity Access Scheme
Centrelink is actively encouraging retirees to review their eligibility for the Home Equity Access Scheme (HEAS), a government-backed program designed to provide additional income support. Through this scheme, eligible Australians can access a portion of their home’s value in the form of non-taxable payments.
The scheme includes several flexible features. Retirees can withdraw up to $250,000 as a lump sum, receive regular fortnightly payments, or even combine both options depending on their needs. Importantly, there are no mandatory repayments required during the retiree’s lifetime. The property remains fully owned, and repayment is typically made when the home is sold or from the estate.
Why This Reminder Matters in 2026
With the cost of living continuing to rise across Australia, many retirees are struggling to keep up with essential expenses. Centrelink data indicates that a large number of eligible individuals are not taking advantage of this scheme, even though it could significantly ease financial pressure.
Common expenses impacting retirees include rising utility bills, ongoing medical and pharmaceutical costs, home maintenance, insurance premiums, and council rates. Many older Australians are considered “asset-rich but cash-poor,” meaning they own valuable property but lack sufficient income for daily needs. The scheme is designed to bridge that gap without forcing major lifestyle changes.
How Much Money Can Retirees Access?
Under the Home Equity Access Scheme, retirees have multiple ways to access funds depending on their situation. They can receive up to 150% of the maximum Age Pension rate through regular payments, or request a lump sum of up to $250,000.
The exact amount available depends on several factors, including age, property value, and whether the individual receives a pension. The loan is secured against the home, but the government includes a no negative equity guarantee. This ensures that retirees will never owe more than the total value of their property, offering an added layer of financial security.
Real-Life Examples of the Scheme in Action
Many retirees across Australia are already benefiting from the scheme. Margaret, a 72-year-old from Adelaide, used the lump sum option to cover urgent home repairs without needing to sell her property or rely on family support.
In Brisbane, John and Elaine, both in their late seventies, have chosen fortnightly payments to help manage grocery bills and medical expenses. They describe the scheme as a financial safety net that allows them to access money tied up in their home while maintaining independence and stability.
Government Position and Key Considerations
Centrelink and Services Australia emphasise that the scheme is entirely voluntary and designed to provide choice. It works alongside the Age Pension rather than replacing it, giving retirees additional financial support when needed.
However, financial experts recommend careful consideration before applying. Interest is charged on the borrowed amount and compounds over time, which can reduce the value of the estate left to beneficiaries. Retirees are advised to consult financial advisers, discuss decisions with family, and carefully assess how much equity they wish to use.
Eligibility generally requires applicants to be of Age Pension age, own property in Australia, and meet residency conditions. Both pension recipients and self-funded retirees may qualify, making the scheme accessible to a wide group of older Australians.
Comparison of Payment Options
| 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 |
