The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

1.1.L.65 Loan (assets test)


This definition applies to all payments subject to assets testing provisions.


To be a loan there MUST be:

  • an actual lending of money or an asset (1.1.A.290) of a particular value, AND
  • a clear intention to repay.

A loan is:

  • an advance of money, or
  • the payment of an amount for, on account of, on behalf of or at the request of a person where there is an obligation, whether expressed or implied, to repay the amount.

Policy reference: SS Guide Encumbrances & loans against assets, Assessing Exemption for Irrecoverable Loans, Failed Loans & Debts, Assessing Loans & Guarantor Arrangements

Last reviewed: