Varying a Rent Deduction Scheme (RDS) deduction 108-08130020

Customers who participate in the RDS can vary the amount of their deductions. If a customer contacts the agency and requests to vary an RDS deduction they should be advised to contact their Housing Authority (HA) office in the first instance to discuss their circumstances. The HA can update the RDS deduction as required.

Service officers cannot vary a customer's RDS deductions. They can terminate an RDS deduction any time at the request of the customer. For more information, see Terminating a Rent Deduction Scheme (RDS) deduction.

Where a Housing Authority (HA) requires a deduction to be varied immediately by the agency, they will contact the National Business Gateway - Confirmation Services helpdesk. A limited number of staff on the helpdesk have the security access required to make updates to an RDS deduction.

If a service centre or smart centre receives a request from a HA to vary a deduction immediately, service officers should contact the National Business Gateway - Confirmation Services helpdesk.

A housing authority may suspend a customer’s RDS deduction for several reasons. Where an RDS deduction has been suspended it shows on the Payment Instruction Summary (PINS) screen as:

• Instruction Amount P.F. = $0.00
• Change Reason = SUE (Suspended by external request)

If a customer is no longer paying government rent to a housing authority but there is a suspended RDS deduction on the customer’s record, it can prevent eligible customers from receiving rent assistance entitlements. It can also prevent service officers from making accommodation updates on the Accommodation Details (AC) screen.

If a customer has a suspended RDS deduction tell them to contact the relevant housing authority to either:

• restore the deduction (if still required)
• cancel the deduction (if not required)

Restoring a suspended RDS deduction

Customers must contact their relevant HA to restore a suspended RDS deduction. Agency staff cannot restore a RDS deduction that is suspended.

RDS deductions suspended for:

• more than 12 weeks - the customer must complete a new deduction authority form before the housing authority can re-start the deduction
• less than 12 weeks - no new deduction authority is required

Cancelling a suspended RDS deduction

If an immediate cancellation of a suspended RDS deduction is required to allow staff to process accommodation updates for a customer, service officers can contact the National Business Gateway - Confirmation Services helpdesk for assistance.

When a customer has an existing RDS deduction in place, and is placed onto Income Management, the rent amount is deducted from the customer's discretionary funds by default, not their income managed funds. The agency needs to ensure that customers are engaged where possible to determine whether they want to pay their rent from their discretionary funds, their available income managed funds or a portion from both available funds. Variations to the existing RDS deduction may be required to ensure that the customer has sufficient funds available to meet their priority needs.