How much CSS, PSS or PSSap income will the banks use?

The Commonwealth Superannuation Scheme (CSS), Public Sector Superannuation Scheme (PSS) and the Public Sector Superannuation Accumulation Plan (PSSap) pays benefits to eligible Australian Government employees once they reach retirement.

This is either in the form of a pension or a lump sum depending on the scheme.

There are lenders that will treat these public sector pension scheme benefits just like regular employment income, significantly improving your borrowing power and ability to get approved.

How much can I borrow?

There are some lenders that will use the net gross income of your CSS, PSS and PSSap income under the condition that either:

  • The income is permanent and ongoing,
  • The income will continue until the end of the loan term,
  • The benefit is paid as a lump sum, as is the case with the PSS and PSSap, or
  • You can show evidence that you could pay off the loan from the sale/realisation of assets like real estate, shares or a lump sum from super.

If you have or will soon receive a CSS, PSS or PSSap benefit, we can help you find a lender that will consider this income.

Call us on 1300 889 743 or complete our online enquiry form to speak with one of our experts in helping retirement age borrowers.


What evidence do I need to provide?

  • Your most recent Superannuation Fund advice issued by the Australian Government (dated within the last 12 months).
  • Confirmation of your current CSS, PSS or PSSap balance dated within the last 30 days
  • Bank account statement dated within the last 30 days showing the payments received or ongoing pension in the case of the CSS.

How does the CSS work?

The CSS was opened to new Australian government employees in 1976 and closed to members in 1990.

There are many members now reaching the age of retirement and in a position to access these funds.

The CSS is what is known as a hybrid superannuation scheme because it’s a combination of both a defined benefit and an accumulation fund.

Part of your benefit – which is paid as a pension – is determined by your CPI-indexed pension, your length of contributory service and your age when you leave CSS.

The other part is determined by your contributions plus scheme earnings or member component and your employer’s fortnightly contributions or your productivity component.

The scheme is managed by the Commonwealth Superannuation Corporation (CSC).

How does the PSS work?

Following the closure of the CSS, the PSS was subsequently opened and then closed on 30 June 2005.

PSS members can make contributions of between 2-10% of their superannuation salary or can elect to make no contributions at all.

These contributions are typically paid fortnightly into the PSS Fund.

When you contribute, your employer also pays an “employer productivity contribution” of around 3% into the fund.

Unlike the CSS, the benefit is paid as a lump sum upon retirement.

The scheme is managed by the Commonwealth Superannuation Corporation (CSC).

How does the PSSap work?

From 1 July 2005, public sector employees have been joining the PSSap.

Again, the scheme is managed by the Commonwealth Superannuation Corporation (CSC) and, like the PSS, benefits are paid as a lump sum.

The difference here is that employers are required to make a 15.4% contribution with members given the option to make salary sacrifice after tax contributions.


When can you access your public sector pension?

Like superannuation, you cannot access your CSS. PSS or PSSap until you reach preservation age and permanently retire from the workforce.

This is between the ages of 55-60.

It’s essential that you seek independent financial advice before accessing your superannuation, particularly for the purposes of buying property or investing.


Do you receive annuity income as well?

As long as you’re within the Centrelink assets test, you may well be able to receive annuity income on top of your public sector pension.

We know lenders that will accept this income when assessing your borrowing power!


Are you a retirement age borrower?

We’re experts at assisting retirement age borrowers to qualify for a home loan.

Getting approved can be really tough due to strict lending policies but we know how to present a strong case with the right bank.

Speak with one of our mortgage brokers by calling 1300 889 743 or by completing our online enquiry form today.

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