{"id":"F2018L01644","name":"Social Security (Pension Loans Scheme—Rate of Simple Interest) Determination 2018","slug":"social-security-pension-loans-scheme-rate-of-simple-interest-determination-2018","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":439848,"registerId":"F2018L01644-fast-fetch-1775955714926","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Social Security (Pension Loans Scheme—Rate of Simple Interest) Determination 2018","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n![Commonwealth Coat of Arms of Australia](image.001.jpeg)\n\n \n\nSocial Security (Pension Loans Scheme—Rate of Simple Interest) Determination 2018\n\nI, Paul Fletcher, Minister for Families and Social Services, make the following Determination.\n\nDated 25 November 2018\n\nPaul Fletcher\n\nMinister for Families and Social Services\n\n \n\n \n\n \n\nContents\n\n1  Name\n\n2  Commencement\n\n3  Authority\n\n4  Schedules\n\n5  Rate of simple interest\n\nSchedule 1—Repeals\n\nPension Loans Scheme—Rate of Simple Interest Determination 1997\n\n \n\n \n\n1  Name\n\n  This instrument is the Social Security (Pension Loans Scheme—Rate of Simple Interest) Determination 2018.\n\n2  Commencement\n\n (1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n \n\n- Commencement information\n- Column 1 Column 2 Column 3\n- Provisions Commencement Date/Details\n- 1. The whole of this instrument The day after this instrument is registered.\n\n\nNote:  This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.\n\n (2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.\n\n \n\n3  Authority\n\n  This instrument is made under subsection 1135(4) of the Social Security Act 1991, as continued in effect by subclause 86(2) of Schedule 1A to that Act.\n\n4  Schedules\n\n  Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.\n\n5  Rate of simple interest\n\n  For the purposes of subsection 1135(4) of the Social Security Act 1991, as continued in effect by subclause 86(2) of Schedule 1A to that Act, the rate of simple interest is 7 per cent.\n\n  Note: This Determination applies only to people who are participating in the previous Pension Loans Scheme, in operation under the provisions of the Social Security Act 1991 as continued in effect by subclause 86(2) of Schedule 1A to the Act.  \n\n\nSchedule 1—Repeals\n\nPension Loans Scheme—Rate of Simple Interest Determination 1997\n\n1  The whole of the instrument\n\nRepeal the instrument.\n\n \n\n \n\n \n","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":2,"scope_assessment":{"changed":false,"description":"The instrument does not expand or narrow who is covered compared with its stated target: it continues to apply only to participants in the previous Pension Loans Scheme but replaces the earlier 1997 Determination by setting the current simple interest rate at 7% (s5; Schedule 1). The change is an update of rate and repeal of the prior instrument rather than a change in the population covered (s5, Schedule 1)."},"complexity_factors":["Direct, single substantive change: sets a single numeric interest rate (7%) — straightforward to apply (s5).","Narrow statutory scope: applies only to participants in the previous Pension Loans Scheme, so affected population is limited (s5, Note).","Cross‑references to external provisions: authority and continuing effect rely on subsection 1135(4) of the Social Security Act and subclause 86(2) of Schedule 1A, requiring users to consult the Act to understand legal basis and interaction (s3, s5).","Repeal of prior instrument: removes the 1997 Determination, so historical comparisons or transitional issues may require checking the repealed instrument (Schedule 1).","Simple commencement mechanics: instrument commences the day after registration, reducing timing ambiguity (s2).","Minimal administrative discretion and compliance burden: fixed rate limits decision‑making by officials and imposes a clear payment obligation on borrowers."],"plain_english_summary":"Fixes the simple interest rate for advances under the previous Pension Loans Scheme at 7% and repeals the earlier 1997 determination (s5; Schedule 1). It applies only to people participating in that earlier scheme. The Minister sets the rate under subsection 1135(4) of the Social Security Act (s3). Borrowers in the scheme pay interest at the prescribed 7%; the instrument takes effect the day after registration (s2)."},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"This Determination maintains the original narrow scope of setting interest rates for the Pension Loans Scheme. It does not expand the scheme's coverage or introduce new policy elements; it merely updates the legislative instrument (repealing the 1997 version) while preserving the same 7% rate for legacy participants. The scope remains tightly constrained to the technical function of specifying a single numerical rate for a specific subset of scheme participants."},"complexity_factors":["Extremely short: only 5 substantive sections plus a repeal schedule","Single operative provision (section 5) containing just one number (7%)","Minimal defined terms (none in the body of the instrument)","Simple structure: name, commencement, authority, schedules, single substantive rule, repeal","However, requires understanding of legislative history: references to 'continued in effect by subclause 86(2) of Schedule 1A' and distinction between 'previous' and 'current' Pension Loans Scheme create contextual complexity for readers unfamiliar with the 2019 reforms"],"plain_english_summary":"This Determination fixes the interest rate for the legacy Pension Loans Scheme at 7% per year (simple interest), affecting the small, closed group of older Australians who borrowed under the pre‑2019 scheme using their home as security. It’s maintenance legislation—it sets what those borrowers owe annually and repeals the prior 1997 instrument; it does not affect participants in the post‑2019 scheme."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/social-security-pension-loans-scheme-rate-of-simple-interest-determination-2018","history":"/api/acts/social-security-pension-loans-scheme-rate-of-simple-interest-determination-2018/history","analysis":"/api/acts/social-security-pension-loans-scheme-rate-of-simple-interest-determination-2018/analysis","conflicts":"/api/acts/social-security-pension-loans-scheme-rate-of-simple-interest-determination-2018/conflicts","importantCases":"/api/acts/social-security-pension-loans-scheme-rate-of-simple-interest-determination-2018/important-cases","documents":"/api/acts/social-security-pension-loans-scheme-rate-of-simple-interest-determination-2018/documents"}}