Qualification for payment of Rent Assistance (RA) 108-08080010

On 30 August 2017, a customer provides verification to Services Australia of a non-income related change of circumstances that occurred on 30 April 2016.

This change of circumstances results in an increase of their RA. In this case, the RA can only be backdated to 1 July 2017. This is because the change of circumstances occurred in the 2015-2016 financial year, but verification of the changed rent details was not provided until after the end of the lodgement year (after 30 June 2017).

Arrears could have been backdated further if:

• the customer was claiming Family Tax Benefit (FTB) and an extension was granted
• the customer provided verification within 52 weeks of being notified of an original decision

On 30 August 2017, a customer provides verification to Services Australia of a non-income related change of circumstances that occurred on 30 September 2016.

In this case, RA can be backdated to the date the event occurred (30 September 2016) because the customer verified their rent details before the end of the lodgement year (before 30 June 2018).

For an example of how to calculate a reduced rate of RA due to a reduction in Family Tax Benefit (FTB) Part A, see Apportionment of income/maintenance reduction for Family Tax Benefit (FTB) Part A.

Example of RA paid on net rent amount:

• The recipient rents a home privately or through a community housing organisation for $200 per week
• Department of Home Affairs pays a subsidy of $90 per week
• RA is payable on $110 per week ($200 minus $90)

RA is payable on the amount of rent actually paid by the recipient. Housing rented through Department of Home Affairs is not considered Government rent.

The Accommodation Details (AC) screen allows future date of events to be coded so both the current and future accommodation circumstances may be coded at the new claim interview if all details are known. Make sure the customer is aware of their obligation to notify any change in circumstances, for example, a change of address and/or amount of rent paid.

Rent Assistance can only be paid for one residence.

Customers can only be paid RA in respect of their principal home, except where they qualify for RA to be paid for temporary accommodation.

A customer who has permanently vacated their previous principal home and are now living in their new principal home cannot claim RA for the previous principal home. Even if the customer is still liable to pay rent at the previous residence until the lease expiry date.

Once the new residence has become the customer’s principal home they can only claim RA in relation to this residence.

Customers who are members of an allowee/allowee couple and receiving rent assistance with their allowance payments, can benefit financially from having their income support payment cancelled rather than entering or remaining in an employment income nil rate period.

This is because customers who enter an employment income nil rate period and were receiving Rent Assistance with their allowance payment, will continue to be treated as receiving rent assistance and receiving an income support payment, for the duration of the nil rate period.

The fortnightly difference for an allowee/allowee couple receiving maximum RA based on 20 March 2024 rates:

• when the allowee customer is in the employment income nil rate period while their allowee partner remains current
• the allowee partner will be paid RA of $88.60 p/f
• this is 50% of the maximum couple rate of RA
• when the allowee customer has their payment cancelled while their allowee partner remains current
• the allowee partner will be paid RA of $177.20 p/f
• this is 100% of the maximum couple rate of RA

This can equate to a maximum payment difference of $1,063.20, payable to the partner over a 12-fortnight period.

Answer: Yes, because the customer is liable to pay both amounts as a condition of occupancy.

Answer: This will depend on which payment the customer receives, if they are single and other payment-specific criteria.

• If the customer is single and receives JobSeeker Payment (JSP), RA is not payable because the customer is under 25 years and living in the parent's principal home
• If the customer receives YA and is classified as independent, but is not (or has never been) in a relationship that qualified them as independent for Youth Allowance and does not or has never cared for a dependent child, they will be regarded as an 'accommodated independent' customer. Accommodated independent customers are not entitled to rent assistance
• If the customer receives Disability Support Pension (DSP) RA may be payable. This is because the customer is over 21 years
• If the customer is single and receives ABSTUDY, RA is not payable because the customer is 22 to under 25 years, and living in the parent's principal home

Answer: Yes, the customer is considered to be a homeowner as they have reasonable security of tenure because of their interest in the house.

Answer: Yes, RA is payable. To qualify for RA a customer has to be liable to pay, or paying rent. As the customer is still liable to pay rent, even though they may not actually be paying rent, they are still eligible for RA. However, if the person lives in informal rental arrangements, they will still be required to get their landlord to sign their Rent Certificate, verifying the amount of rent they pay.

Answer: RA is paid to customers to help them meet the costs associated with renting their accommodation. If a customer has a rent liability and their circumstances allow them to qualify for payment, then RA will be paid. The agency has no authority or ability to make sure that customers meet their financial obligations.

If a landlord wants to know if a customer is receiving RA, the agency will not disclose protected/personal information to third parties unless the individual consents to the disclosure. Note: it may be beneficial for the landlord to become a participating service provider in the Centrepay scheme to assist tenants on income support payments to pay their rent regularly.