1.1.N.78 Nominated amount (PLS)

Definition

For the purposes of PLS, a nominated amount is the amount of equity that a PLS applicant chooses to exclude from the value of their secured asset (1.1.A.290) when determining their maximum loan available. This limits the growth of their PLS debt, but does not prevent the recovery of this amount by the Commonwealth. The recipient may change the nominated amount at any time. A request to change the nominated amount must be in writing and signed by the recipient and their partner if they are a member of a couple.

The nominated amount will also be taken into account by the Secretary in determining whether the value of a person's real assets are sufficient to secure the payment of any debt that may become payable to the Commonwealth under the PLS.

Example: A person has a property valued at $200,000 that they offer as security for their PLS debt. They wish to nominate an amount of $85,000 to limit the total PLS debt that they will accrue with the Commonwealth. When determining their maximum loan amount under the PLS, the value of real assets will be $115,000 (i.e. $200,000 minus $85,000). This is the difference between the total value of the property and the amount of equity they have nominated.

Act reference: SSAct section 1133AA(1)-'nominated amount', section 1137 Need for a request to later nominate or change guaranteed amount …

Policy reference: SS Guide 1.2.3.50 Pensions loan scheme (PLS) - description, 3.4.5 PLS - Qualification & Payability

Last reviewed: 1 July 2019