Getting a loan on Centrelink payments: what you need to know

Can you get a loan on Centrelink payments?

Yes, some banks and lenders will consider Centrelink payments as part of your income when assessing your loan application. However, the extent to which Centrelink payments contribute to your borrowing capacity varies across lenders. While some lenders may allow Centrelink payments as a primary income source, others may only consider them as supplementary income alongside employment or other earnings. 

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Eligibility based on Centrelink payments

Lenders classify Centrelink income into acceptable and unacceptable categories. To verify your payments, generally required documentation includes a letter from Centrelink or a Centrelink statement. Below is a summary of how major banks assess different Centrelink payments (as of March 2025):

ANZ

• Acceptable sources: (can be sole or part of total income): Family Tax Benefits A and B, Partnered Parenting Payments, Aged Pension, Disability Support Pension, and Carer’s Payment.
• Unacceptable sources: JobSeeker, Single Parent Payment, Austudy, Carer’s Allowance, Rent Assistance, WorkCover (unless ongoing), and annual government benefits.
• Payments that can be your total income: Family Tax Benefits A and B, Partnered Parenting Payments, Carer’s Payment and all forms of pensions.
• Total and Permanent Disability Payments are classified as unacceptable but may be considered if specific criteria is met.  

CBA (Commonwealth Bank)

• Acceptable sources: Aged Pension, Veteran Affairs Pension, Disability Support Pension, Widows Pensions, and  Family Tax Benefits A and B.
• Unacceptable sources: Austudy and Newstart (JobSeeker) are not accepted.
• Centrelink payments must be supplementary to other primary income sources.
• Family Tax Benefits (FTB) are considered if payments will continue for at least three years and for children under 18.

NAB (National Australia Bank)

• Acceptable sources: Family Tax Benefits A and B, Partnered Parenting Payments, Aged Pension, Disability Support Pension, and Carer’s Payment, and other Government Payments.
• Unacceptable sources: JobSeeker and Austudy. 
• Assessments are done case-by-case, with an emphasis on reliability and consistency of payments. Certain government allowances require a manual assessment before approval.

Westpac

• Acceptable sources: Age Pension, Service Pension, Disability Support Pension,  Family Tax Benefits A and B.
• Unacceptable sources: Additional Family Tax Benefit supplements, annual social security payments, and any Centrelink payments not explicitly listed as acceptable.
• Child support payments are acceptable only when received alongside PAYG or self-employment income, and must include a 3-month transaction history from the account where the payments are received must be provided.
• Family Tax Benefit Part A & B accepted under specific conditions (Family Tax Benefit B is only for children under eight if in a couple, under 11 if single).

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Do you need a job to qualify?

Single applicant on Centrelink

If you are single and rely solely on Centrelink payments, you may struggle to find a lender that will approve a home loan unless you receive acceptable and permanent payments such as the aged pension or disability pension. Family Tax Benefits may also help if received alongside additional income.

Couple both on Centrelink

If both applicants receive Centrelink payments, lenders will assess whether the combined income is sufficient for repayments. However, most lenders prefer at least one applicant to have a primary income source outside Centrelink.

One partner on Centrelink, one partner employed

This is the most favourable scenario for approval. Many lenders will accept Centrelink payments as supplementary income if one partner has stable employment. The employed partner’s income is usually the primary source of loan serviceability.

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What if your Centrelink payments include Total and Permanent Disability (TPD) payments?

Total and Permanent Disability (TPD) payments are usually lump sums and are generally not considered as income by lenders. However, some exceptions exist:

• If TPD payments are received as a fixed annuity (regular, ongoing payments) and will continue for the loan’s duration, they may be considered.
• Evidence is required, such as insurer documentation proving annuity payment amounts and duration.

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Key takeaways

• Some Centrelink payments, such as aged pensions, disability support pensions, and Family Tax Benefits, may be accepted as income.
• Most lenders require Centrelink income to be supplemented with another income source (e.g., employment or self-employment).
• Single applicants solely on Centrelink payments face more difficulties obtaining approval compared to couples where at least one person is employed.
• ANZ: Allows Centrelink as primary or supplementary income but requires strict verification. Some payments like JobSeeker are unacceptable.
• CBA: Accepts certain pensions and Family Tax Benefits, but these must be ongoing and for at least 3 years. Some payments, like Austudy and JobSeeker, are not considered.
• NAB: Has a more case-by-case assessment for government payments, especially for payments that vary or require manual review.
• Westpac: Accepts various pensions and Family Tax Benefits, but child support can only be considered with additional income (employment). Family Tax Benefits are limited to certain age criteria for children.

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When applying for a loan with Centrelink income, ensuring that payments are verified and consistent is crucial for increasing the chances of approval. If you are considering applying for a home loan, speaking to a mortgage broker can help you determine your eligibility and find the best lender for your circumstances.