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Rent Assistance (RA) for travellers 108-18092606



Scenarios to determine homeownership and Rent Assistance payability

Item

Description

1

An Age Pension customer and partner who own their home in Melbourne, have purchased a caravan and are going to travel around Australia + Read more ...

The customers intend to return to their home in Melbourne. They will rent out this home (their principal home) while they are away.

These customers are regarded as homeowners. They are not eligible to receive RA for at least 12 months from the date they left their principal home in Melbourne.

The rent received from the principal home in Melbourne is income for social security purposes.

If the customers are still travelling after 12 months, the principal home in Melbourne will be treated as an asset. Any accommodation fees paid after this time, can be assessed for the payment of RA.

2

A customer who rents a unit on the Gold Coast has purchased a camper van and is travelling around Australia on a holiday + Read more ...

The customer pays rent for a unit on the Gold Coast. They will continue to pay rent for the unit whilst travelling.

Because the absence is temporary, RA will be assessed on the rent paid on the Gold Coast unit, as this remains the customer's principal home.

RA cannot be paid on any accommodation fees paid while travelling. The customer is not considered to be a homeowner as the mobile home is not their principal home and the mobile home would be regarded as an asset.

3

A customer and partner have recently sold their home and settlement on the property will occur in 2 weeks + Read more ...

Customers plan to travel in their caravan to look for another home to buy. They are unsure at this stage where they will settle.

These customers are homeowners and RA may be payable. Some customers who would normally be treated as homeowners are able to receive RA.

If these customers meet the criteria for the payment of RA (that is, they intend to purchase a new home within 12 months), RA can be assessed on the accommodation fees incurred while they look for their new home. The proceeds from the sale of the home would be an exempt asset for an initial 12 months with the possibility of another 12 months exemption if certain criteria are met.

If the customers state that they are unsure when they will purchase a new home, the mobile home is their principal home and RA is assessable on the accommodation fees they pay. The proceeds from the sale of the former principal home would be an assessable asset.

4

A customer and family are working their way around Australia (itinerant workers), staying in different types of accommodation and the duration of their stay in one place varies + Read more ...

The customer usually rents a caravan in a caravan park. They do not own a home and they are not holding a rental property elsewhere.

RA may be payable because each accommodation type becomes their principal home for the duration of their stay and RA can be assessed on the amounts they are charged.

Ensure that the customer has a rent liability for each stay.

The customer must notify each change of address and advise Services Australia about the type and amount of rent being charged on the day the change occurs to ensure they receive their full RA entitlement.