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. HEAS interest rate


The interest rate of the HEAS is a compound interest rate and is applied to the outstanding loan debt each fortnight. The outstanding loan debt consists of the principal plus previously accrued interest, less any repayments made by the person.

Note: The interest rate is set by the relevant Minister, and is published on the Federal Register of Legislation.

Interest continues to accrue each fortnight on the outstanding balance until the loan has been repaid in full. If the debt is fully repaid, interest is charged up to the final date of repayment. The following table shows the interest rates since the start of the scheme:

Date of effect Interest rate
1 January 2022 to present 3.95%
1 January 2020 to 31 December 2021 4.50%
25 December 1997 to 31 December 2019 5.25%
20 March 1997 to 24 December 1997 6.25%
10 July 1996 to 19 March 1997 7.90%
1985 to 10 July 1996 10%

Act reference: SSAct section 1135 Effect of participation in pension loans scheme-creation of debt

Pre-1996 PLS loans

For pre-1996 PLS loans, the simple interest rate was reduced from 10% to 7%, effective from 25 December 1997.

Last reviewed: