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How rent is calculated

We use your total household’s assessable income to calculate your rent subsidy and the rent you will pay.

You will pay rent based on either 25% of your total household's assessable income or the market rent for the property in which you live—whichever is lowest.

The market rent is equal to the rent charged for a similar property in the private rental market.

Rent subsidy

Your rent subsidy is the difference between the rent you pay (based on your household's assessable income) and the market rent for your property. We subsidise the difference to make sure your rent is affordable.

For example:

The weekly market rent for your home is $180. If the weekly rent you pay (based on your household income) is $100, your weekly household rent subsidy is $80.

Types of income assessed

  • Most pensions, benefits and allowances paid by Centrelink and the Department of Veterans' Affairs
  • Wages, salaries and work allowances such as overtime, bonuses, shift allowances, and penalty rates
  • Income such as regular superannuation, compensation, interest from savings, maintenance and lump sum payments
  • We will also average your previous 4 weeks of earnings from:
    • casual earnings
    • overtime
    • bonuses
    • allowances
    • other income which varies.

What if I’m self employed?

If you are a contractor or self-employed, you must provide your last notice of assessment from the Australian Taxation Office.

If your business has been operating for less than 12 months, your rent is based on the Centrelink payment you would be eligible for if you weren’t a contractor or self employed.

Types of income not assessed

  • Payments for specific purposes such as Pharmaceutical Allowance, Telephone Allowance, Family Tax Benefit Part B, or Foster Care Allowance
  • Youth Allowance and Austudy paid at the dependant rate unless paid to a tenant or a spouse
  • Allowances paid by employers for expenses incurred on the job, for example, tools, meals, clothes and travel allowances.

Changes to your income

If your household income changes you must tell your nearest Housing Service Centre within 28 days of the change. If you don’t tell us you may have to pay a penalty and your rent may be backdated.

If your household income increases because someone in the house earns more money, your rent won’t increase until your next scheduled annual rent review.

If your household income increases because a new person has moved in, your rent will be reviewed and we will advise you of the new rent amount.

What if I have no income?

If you have no income, a very low income, or you cannot verify your income, you will be assessed as having an income based on the equivalent Centrelink payment.

The equivalent Centrelink payment is the payment that most closely aligns with your circumstances, even if you do not qualify to receive payments.

Changes to your rent

Your rent can change after you move in—if your income changes or someone leaves or joins the household. We review your household income annually.

Does having someone stay affect my rent?

A visitor can stay up to 4 weeks without affecting your rent. If they are staying longer you must tell us within 28 days of them arriving that someone has moved in. If you don’t tell us you may have to pay a penalty and your rent may be backdated.

Licence
Creative Commons Attribution 3.0 Australia (CC BY 3.0)
Last updated:
19 March 2013

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