The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. TheĀ 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. Home equity conversion agreement

Assessment of income

A home equity conversion (HEC) agreement is not income.


  • under SSAct section 8(4) and 8(5) the first $40,000 of a HEC loan is exempt from the income test, and
  • under SSAct section 8(11) any amount in excess of $40,000 is exempt from the income test.

Act reference: SSAct section 8(4) Excluded amounts-home equity conversion (not member of a couple), section 8(5) Excluded amounts-home equity conversion (member of a couple), section 8(11) An amount received ā€¦

Policy reference: SS Guide 1.1.H.70 Home equity conversion agreement, Income exempt from assessment - specifically approved, Income exempt from assessment - s 8(11) exempt lump sums

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