The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

3.8.1.109 Net rent rules

Rules

When an income support recipient makes a claim for RA, the total combined rent payable by each member of the household CANNOT exceed the total rent payable for the dwelling. The rent paid by each member of the household should be stated clearly on the original claim form or provided by the customer when they notify of a change of circumstances.

Example: Two JSP recipients share a home and claim RA. The total rent paid on the premises is $200 per week, therefore the total rent declared on the claim form or advised by the 2 recipients cannot exceed $200 per week. How the rent is split between the 2 recipients may be determined by the recipients, they can declare $100 each or one can declare $120 and the other $80, etc.

Example: A JSP recipient shares their home with another person who does not receive a Services Australia payment. The total rent paid on the premises is $200 per week. The total rent declared by the recipient and the rent paid by the non-recipient cannot exceed $200 per week. Therefore, the recipient must declare the rent they collectively pay as well as the amount paid by the housemate. RA is calculated only on the amount paid by the recipient.

Example: An income support recipient pays rent of $150 per week for a household, as stated on a written tenancy agreement (lease). The recipient's daughter and son also live in the house. The total rent declared by the household cannot exceed $150 per week. If the daughter and son declare $65 per week rent each, then the parent's RA is calculated on $20 per week rent ($150 minus $130).

Example: An income support recipient pays rent of $150 per week for a household. The recipient's son also lives in the house. The total rent declared by the household cannot exceed $150 per week. If the son declares $90 per week board and lodging, then the 2/3 rule is applied to give a rent amount of $60 per week. The parent's rent amount for RA purposes is the remaining $90 per week ($150 minus $60).

Example: An income support recipient pays rent of $240 per week for a household. Two exchange students also live in the house. The total rent declared by the household cannot exceed $240 per week. If the students each declare $185 per week for board and lodging, $85 of which is for accommodation (lodging), the recipient's rent amount for RA purposes is the remaining $70 per week ($240 minus (2 × $85)).

People who sub-let their accommodation or provide board and lodging may need to be income tested. For the treatment of income from tenants see 4.3.8.40 Income from boarders or lodgers.

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