Unexpected expenses can happen to anyone. Whether your income comes from employment, Centrelink payments or a mix of both, it’s important to have access to funds when you need them. From spreading the cost of a major purchase to covering urgent bills, loans can provide a helpful financial boost – and just because you’re on Centrelink doesn't mean you can't get one.
Does Centrelink do loans?
Yes – if you’re receiving certain Centrelink benefits, you may be eligible for a Centrelink advance payment. This is an interest-free loan from the government that gives you early access to part of your future benefits. It’s not extra money, but rather a portion of your existing entitlements paid upfront. The advance is repaid over time through automatic deductions from your regular Centrelink payments, usually spread over 13 instalments. This means your future payments will be temporarily reduced until the advance is fully repaid.
Your eligibility for an advance – and how much you can borrow – depends on the type of benefit you receive and how long you've been receiving it.
| Payment type | When you can apply | Advance frequency and amount |
|---|---|---|
| Age Pension, Carer Payment, Disability Support Pension | After 3 months | Every 6 months; $544.95–$1,634.85 (single), $410.80–$1,232.40 (couple) |
| JobSeeker, Parenting Payment, Youth Allowance (job seekers) | After 3 months | Once every 12 months; $250–$500 |
| ABSTUDY Living Allowance, Austudy, Youth Allowance (students) | Any time | Once every 12 months; $250–$500 |
| Family Tax Benefit Part A | Any time | One advance at a time; up to $1,348.81 |
| Mobility Allowance | Any time | Once every 12 months; 6 months' worth of payments |
| Farm Household Allowance | After 3 months | Once every 12 months; $250–$500 |
| Special Employment Advance (for Austudy, Carer Payment, Disability Support Pension, JobSeeker Payment, Parenting Payment (single) and Youth Allowance recipients) | After 3 months and starting paid work of 6+ weeks that reduces your benefit by at least 50% | One-off advance of $50–$500 to cover job-related costs |
Information correct as of June 2025.
However, Centrelink advance payments aren’t available to everyone. Even if you’re receiving an eligible payment, you won’t be able to apply if:
- Are outside Australia at the time of application
- Are still repaying an advance, even if it was taken more than a year previously
- Can’t afford to pay back an advance within six months
- Owe any money to any Australian government department
Where else can I get a loan if I’m on Centrelink?
If you’ve already received a Centrelink advance or don’t qualify for one, there are still other ways to access funds. Banks, credit unions and online lenders will often accept certain Centrelink payments as part of your income, depending on the loan and your overall financial situation.
Small loans are often the most accessible form of finance available, with less stringent eligibility requirements. These short-term, flexible loans offer amounts up to $5,000 and can be used for a range of essential expenses. Most lenders offer fast approval and same-day funding, giving you quick access to the money you need. Repayments are made over a fixed term of up to two years, plus any applicable fees and interest.
Other loans you might be eligible for include:
- Personal loans: a personal loan for Centrelink recipients can offer higher borrowing limits and longer terms, often used for consolidating debt, covering medical costs or making a larger purchase – though it’s harder to qualify for than a small loan, especially if your entire income is Centrelink.
- Car loans: if you need to buy a vehicle on Centrelink, a secured car loan could be an option. By tying the loan to the car you’re buying, you may be able to borrow more than with an unsecured loan, provided the repayments are affordable based on your income.
Alternatively, if you need to cover essential costs like appliances, car repairs, medical bills or rental bonds, another option could be No Interest Loans (NILs) from Good Shepherd. Offered to eligible low-income earners, including those on Centrelink, you can borrow up to $2,000 (or $3,000 for housing costs) with no interest, fees or charges. Unlike other loans, NILs aren’t paid to you in cash – instead, the funds go directly to the supplier or service provider, meaning the loan is for a defined purpose rather than flexible spending.
Will the type of Centrelink benefit I receive affect my eligibility for a loan?
Yes. Not all Centrelink income streams are accepted by lenders, but many are. These include:
- Age Pension
- Disability Support Pension
- Veterans’ Affairs Service Pension
- Special Rate (Totally and Permanently Incapacitated) Pension
- Carer Payment
- Parenting Payment
- Child Care Subsidy
- Family Tax Benefits A and B (this may include the JobSeeker Payment)
However, be aware that if you receive the following, these will not typically be counted towards your total annual income when applying for an instant cash loan:
- JobSeeker Payment (on its own)
- Youth Allowance
- Austudy
- ABSTUDY
These aren’t accepted in the same way as other forms of Centrelink payments as they’re not considered stable income. These are conditional based upon being in a certain employment or study position, which could change at short notice and cause the recipient to lose this interest stream.
Can I get a loan if 100% of my income is from Centrelink?
You may be able to apply for a small loan if 100% of your income comes from Centrelink, but this depends on your lender, the amount you borrow and your ability to repay it.
While most lenders will count Centrelink payments as income, many will not allow it to make up more than 50% of your total earnings and will not approve a loan if Centrelink is your sole source of income.
On top of this, lenders are also legally required to ensure that total loan repayments don’t exceed 10% of your after-tax income, to help prevent borrowers from falling into unmanageable debt.
What can I use my Centrelink loan to pay for?
Small loans are provided as a cash lump sum and are unsecured, which means you can use the funds for a wide range of essential or unexpected expenses as you choose. This flexibility makes them useful for one-off costs such as:
- Car repairs
- Rental bond or moving costs
- Furniture or whitegoods
- Medical or dental bills
- Vet expenses
- Urgent home repairs
However, loans shouldn’t be used to repay other loans, fund gambling or cover ongoing shortfalls.
Tips to improve your chances of loan approval on Centrelink
Getting approved for a loan while receiving Centrelink payments can be more challenging, but there are steps you can take to boost your chances:
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Apply for a realistic amount
Lenders are more likely to approve smaller loan amounts that better match your income level and repayment capacity.
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Find a lender that accepts Centrelink income
Not all lenders will consider Centrelink payments as part of your income. Using a comparison platform like Savvy can help you find lenders who do and match you with a suitable option based on your circumstances.
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Provide all necessary documents upfront
Have your documentation like recent bank statements, Centrelink income summary and ID ready to help speed up the process and avoid delays.
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Maintain stable account activity
Showing regular income payments and responsible spending over the past few months (e.g. no overdraws or gambling) can help demonstrate you’re managing your finances.
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Avoid making multiple applications
Submitting several loan applications in a short period can damage your credit score. Instead, take the time to compare your options and then apply with a lender that suits your needs.
How to apply for a small loan on Centrelink
Savvy partners with a wide range of lenders that may accept Centrelink income. When you apply through us, we’ll help connect you with the loan that fits your situation best. Here's what you need to do:
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Fill out our quick online form
Start by completing a short form with basic personal details, the amount you want to borrow, and information about your income and living expenses. If you’re unsure whether you qualify, you can still submit an application. There’s no hard credit check at this stage, so your credit score won’t be affected by your enquiry.
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Receive an instant outcome
We’ll submit your application to our marketplace of partnered lenders and it will be reviewed instantly. If you meet the criteria, you can be conditionally approved in 60 seconds.
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Provide any required documents
From there, you’ll complete your application with your lender directly. They’ll request your bank statements, Centrelink income statements and any other required documents to formally assess your profile.
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Get approved and sign your contract
If approved, you can sign your loan contract electronically. Your funds could be transferred to your account on the same day, depending on the lender and time of approval.
