Policy Statement

Housing NSW charges market rent for all its properties.  All tenants living in dwellings owned or managed by Housing NSW are required to pay rent.  Housing NSW is able to charge rent in accordance with the provisions of the Residential Tenancies Act 1987 and the Housing Act 2001.

If your household has a low or moderate income you can apply for a rent subsidy.  The rent subsidy reduces the amount of money you have to pay in rent.   If you are approved for a rent subsidy this means Housing NSW does not charge you the full market rent set for the property.

Aboriginal Housing Office Tenancies

This policy applies to Aboriginal Housing Office tenancies.

Intent of Policy

The intent of this policy is:

• To determine if a tenant can afford to pay the market rent of their dwelling.
  
• If the tenant can’t afford the market rent, to determine an appropriate level of rent subsidy.

Policy Detail

What is a Rent Subsidy?

Many people who live in Housing NSW home cannot afford to pay the full amount of the market rent and may apply to Housing NSW for help to pay some of the market rent.  The portion of the market rent that Housing NSW pays on your behalf is called a rent subsidy.  Households receiving a rent subsidy pay a percentage of their income as rent.  The rent subsidy is not paid to you but is deducted from the market rent.  The portion you pay is called the rent payable or net rent.  Your rent payable is calculated according to your household’s size, type and gross assessable income.

For example:

Market Rent – Rent Subsidy = the Rent Payable

What will my rent be?

There are a number of household income limits and rent assessment rules that determine how much rent your household will pay.  These limits and rules determine whether you are eligible for a rent subsidy and the percentage of income you pay as rent.  Your household’s gross assessable income, household size and age of household members are used when assessing your household’s eligibility for a rent subsidy.

Since 11 July 2006 Housing NSW's policy has been to assume that each adult person in the household should contribute at least $5 per week towards the rent. For more information see the Rent Assessment Rules section.

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Household Income Limits and Household Types

Household income limits are a range of income thresholds that determine whether the household is eligible for a rent subsidy and the percentage of income your household pays as rent.  The income limits that apply to a household are determined by using the income allowances for the four key household member types described in Table 1.  These income allowances are used to determine the income limit for any household combination by adding together the income allowance amount for each household member type.

Household types are based on the number of adults and children in a household.  Housing NSW defines adults as people 18 years or over and children as people aged under 18 years.  Relationships within a household are not taken into consideration when determining household type.

Table 1 - Income Allowances for the four Key Household Members, using gross weekly assessable income effective from 1 July 2009.

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To determine which Household Income Limit applies to your household take the following steps:

Step 1

Add up the assessable income for each adult in your household.  Where a tenant or their spouse is under 18 years of age, they are considered to be adults.

Step 2

Add up the number of adults in the household.  These are people who are 18 years or over.

Step 3

Add up the number of children in the household.  These are people who are under 18 years of age.

Step 4

For each adult and child add up the income allowance from Table 1.

Step 5

Compare the amount at Step 4 with your household income at Step 1 and determine which household income limit applies to you.

For example in the case of a couple with three children aged 19 years, 14 years and 12 years, the household is made up of 3 adults and 2 children.  The household’s gross assessable income is $1000 per week.  To see what the moderate-income limit for this household would be:

Allow for the 1st adult $615, and add $160 for each additional adult, then add $125 for the 1st child and $85 for the second child.

$615 + $160 +$160 + $125 + $85 = $1145

The moderate-income limit for this household is $1145.

Therefore the household’s income ($1145) is below the moderate-income limit so they pay 25% of their income as rent (see assessment rule 2).

Table 2 - Examples of Household Income Limits for some typical household types, using gross weekly assessable income.

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Rent Assessment Rules

The rent assessment rules are:

1. The maximum amount of rent you pay is the market rent.
2. Households whose gross assessable income is less than the moderate income limit amount will pay 25% of their income as rent.
3. Households whose gross assessable income is equal to or more than the moderate income limit and less than the 30 % limit will move from paying 25% of their income as rent to 30% on a sliding scale, depending on how far their income is above the moderate income limit. There may be a slight variation to the limits stated in Table 1 (above) when calculating the 30% income limit due to rounding. In these cases the actual calculation of the 30% income limit will be used rather than the 30% income limit listed in Table 1. 
4. Households whose gross assessable income is equal to or more than the 30% limit and less than the subsidy eligibility limit will pay 30% of their income as rent.
5. Households whose gross assessable income is equal to or more than the subsidy eligibility limit will not be eligible for a rent subsidy and will be charged market rent.
6. Households where the rent payable is more than the market rent will pay market rent.
7. Income of the tenant and their spouse (even if they are under 18 years) and the income of other household members 18 years and over is included when assessing income for rent.
8. Income of other household members under 18 years of age is not included when assessing income for rent.
9. Concessional rent rates may apply to the income of some tenants and other household members.  See Concessional Rates for more information.
   When a household’s gross assessable income is below the subsidy eligibility limit (assessment rules 2 – 4), the rate of income assessment, from 25-30% applies only to the income of the household members who do not receive a concessional rent rate. 
10. The minimum rent charged, for each household member aged 18 years or more, is $5 per week.  For more information see $5 minimum rent.

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Eligibility for a Rent Subsidy and Special Assistance Subsidy Clients

Information about eligibility for a Special Assistance Subsidy and the percentage rate applied to a SAS household for SAS clients is detailed in the Special Assistance Subsidy – Disability (SAS 0100B) and Special Assistance Subsidy – Special (SAS0100A) policies. 

The household income limits detailed in Table 1 and Table 2 of this policy do not apply to SAS clients.

Once a SAS client is approved to receive a rent subsidy under the Special Assistance Subsidy Schemes this Rent Subsidy Policy applies when assessing their subsidy unless otherwise specified in this policy document.

Concessional Rates

Some tenants, SAS clients and other household members will have their income assessed at a reduced percentage rate.  These reduced percentage rates are called concessional rates.  The concessional rates that apply are:

Family Tax Benefits

• All households have the Family Tax Benefits Part A and Part B assessed at 15%.
• Where an additional household member aged 18-20 years receives any Family Tax Benefits Part A and Part B, the assessment rate is capped at the young persons concessional rate of 13.75%
• SAS households have their Family Tax Benefits Part A and Part B assessed at 11%
• If you receive the Family Tax Benefit Part A and Part B through the taxation system, these payments are not assessed.

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Income received for a Child

Where an adult person in a household receives an income for a child this is considered assessable income for both rent subsidy eligibility and rent subsidy assessment purposes.  This income is included in the assessment of the adult person’s income, not the child’s. 

Income received by a Child

Where a person under 18 years receives an income such as Wages, Youth Allowance or Special Benefits, this income is not assessed.  This is because the income of the children is generally not assessed by Housing NSW for eligibility or rent assessment purposes. The exemption is income received by the tenant or spouse. This is assessed even if the tenant or spouse is under 18 years.

Young People

These concessional rates are intended to help young people during their transition from school/training to work.

• Other household members aged 18-20 years pay 13.75% of their assessable income as rent.
• Other household members aged 21-24 years pay 22.5% of their assessable income as rent.
• The tenant and their partner even if they are under 25 years are not eligible to receive the young persons concessional rate.
• Temporary exclusion of $30 per week single pension increase.

Temporary Exclusion of $30 per week Single Pension Increase
From 21 September 2009, single pensioners started to receive an increase in their base pension of up to $30 per week. The increase was announced in the 2009 Commonwealth Budget.

For a period of 12 months, Housing NSW will exclude the $30 per week single pension increase from the assessable income of full rate pensioners when assessing rent subsidy entitlements.

For single part-pensioners, Housing NSW will exclude a pro-rata amount from their assessable income based on the proportion of the full pension amount they receive. This exclusion will also apply for a 12 month period only.

For example, if a pensioner receives half the full pension amount, Housing NSW will exclude $15 per week from their assessable income when assessing their rent subsidy entitlement.

Housing NSW will continue to include regular indexation pension increases when assessing rent subsidies during the temporary exclusion period but will exclude from that calculation the portion of the indexation increase related to the $30 per week pension amount.

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Pensioner Rent Concession

An 18% rent concession was granted to single pensioners and pensioner couples, living on their own, whose only income was the age, invalid, widow’s or war service pension and any supplementary rent assistance prior to 1982.  Housing NSW made minor changes to the original eligibility criteria between 1982 and 1990.  On 4 February 1990 Housing NSW ceased granting any new pensioner rent concessions.

For tenants currently approved to receive the pensioner rent concession the following rules apply:

• Tenants and their partners approved for the pensioner rent concession who receive an assessable pension or allowance from Centrelink or the Department of Veterans Affairs will only have this portion of their income assessed at the concessional rate.  Any other income they receive will be assessed at the percentage rate applied to that type of household member or the household income as per the policy.
• As long as the tenant and their partner continue to receive an assessable pension or allowance from Centrelink or the Department of Veterans’ Affairs, tenants and their partners will remain eligible for the pensioner rent concession
  • even if they move to another public housing or Aboriginal Housing Office tenancy under any circumstances,
  • or an additional household member joins the household and is approved as an additional occupant.
• Where a spouse or partner succeeds to the tenancy, they remain eligible for the pensioner rent concession.
• Additional household members are not eligible to receive the pensioner rent concession and will have their income assessed at the percentage rate applied to the household or at an applicable concessional rate.
• Tenants and their partners approved for a transfer into a SAS tenancy are not able to receive the pensioner rent concession when they move into the SAS tenancy.
• Where the pensioner rent concession was lost because the tenant was no longer eligible or transferred to a SAS tenancy, it will not be reinstated, even if the tenant would now meet the current rent concession eligibility criteria.
• The current pensioner rent concession rate is 19%.

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Eligibility for the Tenant Employment Incentive Scheme (TEIS)

Under the Tenant Employment Incentive Scheme (TEIS) a tenant or their partner who commences employment is entitled to a grace period of up to 12 weeks of non-adjustment of their subsidy to the new income level within a financial year provided:

• you or your partner applies directly to Housing NSW for TEIS, (even if your income details were provided through ICS) and tell us about your change in income within 28 days of commencing paid employment for casual, part or full time or season work or self employment. This is in line with Housing NSW's  policy that you must tell us about any changes to your household's income within 28 days.
• you or your partner is in receipt of a rent subsidy, and the party applying for TEIS did not include wages as a source of income before the commencement of employment.
• you or your partner are receiving wages from a CDEP employer and the amount of CDEP wages received is more than the maximum rate of Centrelink or DVA pension or allowance you would be entitled to according to age and household composition.

If your partner is applying, they must have been part of the existing household for a minimum of six months prior to commencement of employment.

If you are receiving no income or below normal Centrelink income, then we will assess the subsidy based on the statutory allowance you would normally receive from Centrelink or the Department of Veterans’ Affairs.

The TEIS policy is effective from 5 November 2001.

TEIS does NOT apply if:

• you are a SAS client.
• you or your partner tells Housing NSW that they have started work more than 28 days after commencing employment, or
• the household is paying full market rent before the commencement of employment, or
• the person applying (you or your partner) are receiving a wage or  are in some form of existing employment at the time of applying for TEIS, or
• the increase in household income is due to you or your partner moving from casual, seasonal or part time work to full time or from any type of employment to another, or
• other household members commence employment, or
• you or your partner are receiving a New Enterprise Incentive Scheme (NEIS) Allowance. Tenants who receive this allowance from Centrelink are given an additional allowance equivalent to Newstart for the first six months of self-employment in addition to the wage they may receive from the business, or
• you or your partner are receiving income from ‘Work for the Dole’ or total ‘Community Development  Employment Project’ (CDEP) wages that are equivalent to the Newstart allowance (or other benefit) for their age and household composition.  These are activities which the client must participate in to ensure their eligibility for ongoing Centrelink. Upon employment the tenant or partner would be eligible for TEIS, or
• you are a low wage earner who is receiving an income below the Newstart Allowance (or other benefit) for their age and household composition. Low wage earners are assessed as though they do receive an allowance for usual subsidy assessment but are not eligible for TEIS because they are already in employment.

The period of up to twelve-weeks of non-adjustment to a rent subsidy is known as the grace period.  It is calculated:

• from the first grace period granted to a household to the next grace period within the financial year
• for employment of either the tenant or partner: eg four weeks of employment by a tenant and a further eight weeks partner employment
• from any number of weeks of employment up to 12 weeks for either the tenant or partner within a financial year. There could be several short grace periods in a 12-month period as employment commences and ends.
  

Assessment of Commonwealth Rent Assistance

Commonwealth Rent Assistance is not included when determining income eligibility for a rent subsidy, but if received it is included when calculating the rent subsidy as it is a payment intended to contribute to the market rent.

Public Housing Tenancies

As a general rule public housing tenants and their partner are not eligible to receive Commonwealth Rent Assistance (CRA) from Centrelink or the Department of Veterans’ Affairs as they pay ‘government rent’.  However, where a household member other than the tenant or their partner is eligible to receive CRA, because Centrelink or the Department of Veterans’ Affairs recognise them as a sub-tenant, the amount of CRA they receive is included in the rent subsidy assessment and assessed at the percentage rate applied to the household or at an applicable concessional rate.

Aboriginal Housing Office Tenancies

Aboriginal Housing Office (AHO) tenants and other household members may be eligible to receive Commonwealth Rent Assistance (CRA) as they do not pay 'government rent' according to the Centrelink and Department of Veterans’ Affairs criteria. Under these criteria, AHO household members pay CRA rent which is known as 'community rent'.

For rents from 6 July 2009, CRA entitlements will be imputed for AHO households so as to maximise the CRA received by those households. CRA will then be assessed at 100% for all household members treated as paying rent and added to the rent for the household. As no household can be charged more than market rent, adjustments may be made to the amount of CRA assessed for particular household members so that the rent for the household is no more than market rent. In greater detail, the CRA rent arrangements for AHO households entail:

1. CRA rent is based on a household member’s eligibility to receive CRA. CRA is included in AHO rent whether household members receive it or not. If household members do not apply for CRA, the CRA rent will still be charged.

2. If household members apply for and receive CRA, then it will cover the CRA component of their rent. The intention of this policy is that no household member is out-of-pocket because of CRA rents.

3. Household members are encouraged to apply for or update their CRA so that they are not out-of-pocket.

4. If no one in an AHO household is eligible for CRA, then that household’s rent will not include CRA.

5. CRA rents cannot exceed market rent.

6. Tenants are requested to inform Housing NSW of the CRA their household is receiving. In any event, and in line with this policy, they need to do this within 28 days of CRA being received.

7. If the CRA payments paid by Centrelink are different to those imputed by Housing NSW, then Housing NSW will assess an adjustment if we are informed by the tenant of the difference.
   
   It is better to not make continual adjustments to CRA rents and payments, so Housing NSW will make only one adjustment to CRA for each household member until the household income or number of people in a household change. If necessary, a further single adjustment could be made in the following ‘subsidy period’, and so on.

8. For information about CRA rents and calculation of water charges in shared-water meter properties see Water Charging REN0042A.

For more information on these arrangements see CRA Rents Q&A.

Special Assistance Subsidy Clients

Clients who receive the Special Assistance Subsidy (SAS) are entitled to receive Commonwealth Rent Assistance as they are not public housing tenants and are renting in the private sector.  For details on assessment of CRA for SAS clients please see the Special Assistance Subsidy – Disability (SAS 0100B) and Special Assistance Subsidy – Special (SAS0100A) policies.

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Evidence Requirements

Each tenant is responsible for collecting the income details of other household members and providing these details to Housing NSW so that their rent subsidy can be assessed. When applying for a rent subsidy a tenant must provide proof of all income received by all members of their household aged 18 years and over. Proof of income must be original and can be:

• Provided through the Income Confirmation Scheme for Centrelink pensions and allowances
• An income Statement from Centrelink
• An income Statement from the Department of Veterans’ Affairs
• Current earnings as evidence by
  • payslips with year to date earnings and other details as outlined in the Housing NSW Form B or
  • employer statement or letter confirming personal details, nature and period of employment and other details as outlined in Form B or
  • Form B completed by client's employer/s
• A profit and loss statement completed by an accountant or taxation return for self employed clients
• A letter or statement from an Overseas Government detailing the amount received
• A letter or statement from WorkCover or Insurance company detailing the amount received
• A letter or statement from investment organisation about savings/investments etc providing details of the amount or dividend received
• A completed Housing NSW Land and Property Ownership form
• A letter from another organization or income provider (not listed above) detailing the amount and type of income received.

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Income Confirmation Scheme

If a tenant or member of their household receives payments from Centrelink, they can agree to Centrelink giving Housing NSW details of their income through the Income Confirmation Scheme (ICS). For more information see the policy Income Confirmation Scheme (EST0200A). If Housing NSW has your consent to using ICS, then when you advise us of changes to your household or household income, you do not have to provide details of your assessable Centrelink pension or allowance to Housing NSW, as it is done for you electronically.

Even if you have told Centrelink about changes to your household or household income you must still tell Housing NSW within 28 days about these changes.  This is because the Income Confirmation Scheme does not automatically provide Housing NSW with your updated income details from Centrelink.  Generally, Housing NSW only uses ICS when it is advised about changes in a household’s circumstances and during individual and Group Subsidy Reviews.

If you are a participant in the Income Confirmation Scheme (ICS), Housing NSW will use Centrelink’s advice of your income from an assessable Centrelink pension or allowance to determine your rent.  If you have an income in addition to your Centrelink payment, and participate in ICS, the information Housing NSW receives about your additional income from Centrelink may be different than if you had provided the information directly to Housing NSW.  This is due to differences between Centrelink and Housing NSW policies for assessing incomes.  If you are in ICS and receive other income, you will need to provide Housing NSW with proof of this income.

If you do not participate in ICS, we will assess your income based on the information you provide to us and the assessment rules set out in this policy.

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Change in Circumstances

Tenants must tell Housing NSW about any changes to their household, or of any changes to the gross income of any member of the household within 28 days.  Tenants must tell Housing NSW about any changes within 28 days even if they know Housing NSW has planned a Group Subsidy Review in the future.  A tenant who does not tell Housing NSW about changes to their household or household income may be charged the wrong amount of rent.  In some cases this may result in the tenant owing money to Housing NSW.

When a tenant tells Housing NSW about changes to their household or household income Housing NSW will reassess their rent subsidy to ensure their household is paying the correct amount of rent.  This is called an individual subsidy review. 

Housing NSW will, from time to time, review the income details of all tenancies receiving a rent subsidy and their entitlement to receive it. This is called a Group Subsidy Review.

When Housing NSW has completed a rent subsidy assessment during either an individual or Group Subsidy Review, it will write to tell the tenant about their new rent and the date from when it is to be paid.  This letter will list the income amounts that Housing NSW has considered when calculating the rent payable for the tenant’s household.

If a tenant or their partner was receiving a statutory income before beginning employment they may be entitled to up to 12 weeks non-adjustment of a subsidy in the financial year under the Tenant Employment Incentive Scheme (TEIS). More information on this is detailed above under Tenant Employment Incentive Scheme.

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Assessing Income and Assets

The Housing NSW defines which incomes received by clients should be included when determining subsidy eligibility or rent assessment.

Incomes that are included for subsidy eligibility and rent assessment purposes are referred to as assessable incomes. This is usually income received by individuals for general income support.

Incomes that are not included for subsidy eligibility and rent assessment purposes are referred to as non-assessable incomes. These are usually payments received by individuals for a specific purpose, such as allowances received because they are needed to assist with a particular life circumstance or disability.

Sometimes Housing NSW refers to income as being either statutory or non-statutory.

Statutory income includes benefits, pensions and allowances paid by the Commonwealth Government through Centrelink, the Department of Education and Youth Affairs or the Department of Veterans Affairs.

Non-statutory income is income you receive from sources other than providers of statutory income (Centrelink or the Department of Veterans’ Affairs), such as wages or interest.

No Income or Reduced Statutory Income

There are certain situations where the Housing NSW will assume that a tenant or adult household member has income for subsidy assessment purposes even though they do not have an income or are receiving a reduced statutory income. These situations are:

1. The tenant or adult household member has chosen not to apply for an income to which they are entitled. 
   In this situation Housing NSW will base its calculations on the statutory payments that the tenant or household member is entitled to, according to their age and household composition, unless they can demonstrate exceptional circumstances.
   
   
2. The tenant or adult household member is not eligible to receive a statutory income for one of the following reasons:
   
   
   • the statutory income recipient has gone overseas
     
   • they are a recipient of Newstart and have not sought work and so become ineligible for further payments from Centrelink for a specified period
     
   • the tenant or adult household member has received a compensation  or other lump sum payment. For a certain period, they are expected to use the proceeds of the payment for living expenses. During this time they are ineligible to receive a Centrelink pension or an allowance.
     
   • the tenant or adult household member is deemed by Centrelink to have sufficient resources and they are expected to use these resources for living expenses for a certain period. During this time they are ineligible to receive a pension or an allowance
     
     In this situation Housing NSW will assess the tenant’s subsidy application based on the statutory allowance the tenant or adult household member would normally receive, which will be indicated by an Income Statement obtained from Centrelink.
     
3. The tenant or adult household member is receiving a reduced statutory income and has no income from any other source.
   
   This happens when a tenant or adult household member has ‘breached’ Centrelink requirements or is repaying a Centrelink debt.
   
   In this situation Housing NSW will assess the tenant’s subsidy application based on the statutory allowance the tenant or adult household member would normally receive, which will be indicated by an Income Statement obtained from Centrelink.
   
   Under some specific circumstances clients with no or reduced income are eligible to be considered for $5 minimum rent.  For more information see $5 minimum rent.

Table 3 - Eligible $5 rent

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Table 4 - Income and Asset

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Income for Self-Employed Clients

The income of self-employed clients is calculated by taking the gross income less legitimate business deductions.  Legitimate business expenses are classed as any expense essential for producing an income.  Some items may be allowable as tax deductions, but we do not consider them to be legitimate business expenses.

The client will need to provide proof of income in the form of a current profit and loss statement from an accountant or a current tax return (not a tax assessment notice).  If when the client’s income is calculated it results in the income being below the standard rate of Newstart then the client’s income will be assessed at the Newstart rate.

The below table details each item and if the item is a deductible or a non-deductible business expenses.

Table 5 - Deductible and non deductible business expenses

Note  - Any other expenses not listed above are deductible if they are essential for the functioning of the business.

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Tenants who own or have a Share in Real Estate

If a tenant (or their partner) owns or has a share in a property that could provide a viable alternative to public housing or a SAS tenancy they will not get a rent subsidy. Housing NSW expects them to live in that property or to sell the equity in the property to meet their housing needs.

If a tenant or their partner is leasing the property to another person they are not eligible for a rent subsidy (irrespective of the rent earned).

Any income generated by the property will be treated as non-statutory income in cases where the tenant or their partner only has a part share in the property. In this circumstance Housing NSW will only assess the part share of property income.

Housing NSW may not consider the property, its value or any income generated by it for the subsidy assessment where the property is:

• in an isolated location
• an extremely run-down dwelling
• overseas
• tied up in a legal dispute and income cannot be generated from it.

If another household member owns or has a partial share in a property in Australia, Housing NSW will treat this as an asset unless an income is derived from the property.  The tenant may receive a rent subsidy and the value of the property is included in assessment of the household's income and assets.

Where a client has an interest in a block of land we do not consider this in their rent subsidy assessment.

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Low Wages or Below Normal Incomes

People who receive an income below the Newstart allowance (or other benefit) for their age and household composition are assessed as though they do receive this allowance for their age and household composition. This includes people who receive wages or salaries, are self-employed or receive no income because of religious beliefs.

Irregular Wages

In the case of people who have just commenced employment and will be receiving the same gross amount of income each week, the subsidy will be assessed on this gross amount.

Where a person will be receiving a fluctuating wage or salary from one or more employers, (such as through casual work), Housing NSW will discuss with them how best to predict their future weekly income, by:

• Either averaging the income according to the amount of time they have worked for this employer, but no more than the last 26 weeks, or
• Using the actual amount they have received in their first pay and arrange to reassess the subsidy in 2 months time.
  
  When the subsidy is reassessed at the end of the two month period and the estimated income is lower than the actual amount of income received, the tenant or adult household member will need to make up the difference.

If, after calculation, the weekly gross income amount is below the standard Centrelink income for the tenant’s age and household compositions, Housing NSW will assess their income at the standard Centrelink benefit amount according to their age and household composition.

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$5 Minimum Rent

In some situations Housing NSW will assess a tenant or adult household member’s contribution to the rent at $5 per week. These situations are set out in the table below.

Table 6 - $5 Minimum rent and houshold members

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SAS Clients and $5 Minimum Rent

SAS clients in the circumstances detailed above may be approved to receive the $5 minimum rent.  However, before approving a SAS client to receive the $5 minimum rent Housing NSW will consider whether this is reasonable to do so given the current circumstances of the client, and whether they are in a fixed term or continuing tenancy. Generally, SAS clients who go to prison are not eligible to be charged $5 minimum rent. 

Approval will only be given for up to 3 months and Housing NSW will review the situation after 6 weeks and can cancel the minimum rent at that time.

For SAS clients, the $5 minimum rent charge will only apply to single person households. Where there is more than one person in the household the subsidy is reassessed based on the total household income of the remaining household members.

Table 7 - Examples of how this policy applies in specific situations

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Fixed Term Tenancies

In the situation where a tenant is on a fixed term Tenancy Agreement and Housing NSW decides to offer a further tenancy, on the expiry of the fixed term lease, Housing NSW assesses the tenant's rent in the same way as for their previous tenancy. The amount of rent the tenant is required to pay will only change if, during the review of a tenancy, Housing NSW becomes aware that the tenant's circumstances have changed.

Backdating Rent Subsidies

Backdating refers to retrospective subsidy adjustments.  These are created when the tenant or SAS client advises of changes to household income dating back through the existing and/or previous subsidy periods.  Backdating also applies when rent subsidy non-disclosure or fraud is proven against the tenant or SAS client.

From 5 December 2005, Housing NSW has made changes to its policy on backdating subsidies.  Since 1 October 2002, when the Income Confirmation Scheme was implemented, the rent subsidy policy was to not backdate during a  Group Subsidy Review when the income details from ICS show that the client has an additional income that was previously undisclosed. 

However since 5 December 2005, tenants and SAS clients must tell Housing NSW within 28 days of any changes to their household or household income, even if they have told Centrelink and given consent for Housing NSW to use the Income Confirmation Scheme. If a tenant doesn't tell Housing NSW about changes to their household or household income their household may be charged the wrong amount of rent.  If this happens Housing NSW will backdate the tenant's rent subsidy or special assistance subsidy and in some cases this may result in you owing money to Housing NSW. Housing NSW will backdate a tenant's subsidy whenever it finds out that a tenant's household or household income has changed even if this happens during a Group Subsidy Review.

Housing NSW will always backdate a subsidy when rent subsidy fraud is identified and proven. Housing NSW will also backdate a subsidy when rent subsidy non-disclosure is identified and proven (and there are sufficent details to reassess the subsidy). Further action may also be taken against the tenancy. 

During an Individual  or Group Subsidy Review, Housing NSW will backdate when:

1. A client’s income has decreased and they would be entitled to a reduction in their rent payable.  Note: This will not apply in cases of point  5 in “During an Individual or Group Subsidy Review, we will not backdate when”.
2. A client is now in some form of employment and they are not entitled to the benefits of TEIS.
3. An additional person moves into the household
4. Backdating is applied in any of these circumstances provided that the household income has increased by at least $10 per week or the total backdated subsidy adjustment is at least $100.

During an Individual or Group Subsidy Review, Housing NSW will not backdate when:

1. A client moves from a Centrelink Allowance to a Pension
2. A child turns 18 years.
3. The ages of children change and this impacts on the Family Tax Payments.
4. A client in receipt of salary/wages and the completed Form B shows a change in the average weekly income.  The assessment of salary/wages for the future is based upon the income earned during the previous 6 months.
5. A client’s income has decreased due to some action or lack of action on their part.  These include:
   
   • A Centrelink breach
   • A failure to apply for a Centrelink income
   • They have caused themselves to not receive a Centrelink income
   • Leave without pay for a person in employment
   • A strike

Absence from the dwelling which is not due to the client being in a nursing home, rehabilitation, respite care, a refuge or prison.

Return of Rent Subsidy Renewal Form after the Group Subsidy review is completed

When Housing NSW conducts a Group Subsidy Review it may send tenants a Rent Subsidy Renewal Form to confirm their current household income. If the form is not returned by the date requested and no contact has been made by the tenant market rent will be charged from that date until the Renewal form is returned. Upon returning the form, if the tenant provides information establishing their need for a rent subsidy and a reason as to why the return of the form has been delayed the Rent Subsidy may be backdated to the effective date.   

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Failure to disclose all, or changes to household circumstances

It is the client’s responsibility to satisfy Housing NSW that they are entitled to a subsidy (including Special Assistance Subsidy).  This includes advising Housing NSW of any change to their household circumstances within 28 days of the change occurring.

If Housing NSW receives information that a tenant may be receiving a subsidy (including SAS) they are not entitled to it will assess the situation to determine if:

• No further action is required because the allegation is unsubstantiated.
• Subsidy (including SAS) non-disclosure has occurred.
• Subsidy (including SAS) fraud has occurred.

Subsidy (including SAS) non-disclosure occurs when a client has failed to advise Housing NSW of the details of, or any change to, their household circumstances but has not done so deliberately.  This may occur where, for example, a client’s capacity to understand their obligations have been diminished due to a disability or because they are subject to duress.

Subsidy (including SAS) fraud occurs when a tenant is aware of their obligation to advise Housing NSW of the details of, or any change to, their household circumstances but deliberately does not, either by deliberate omission or through a false, incomplete or misleading statement.

Depending on the outcome of the assessment Housing NSW may take a range of actions including cancellation or adjustment of a subsidy (including SAS) through to termination of the tenancy and/or criminal prosecution.

For further information see the Rent Subsidy Non-Disclosure policy.

Appealing Decisions or Actions

If a client disagrees with a decision Housing NSW has made, they should first discuss their concerns with a Client Service Officer. The next step if they still believe we made the wrong decision is to ask for a formal review of the decision. For information on how reviews work, the client can ask the Client Service Officer for a copy of the fact sheet ‘Reviewing Decisions’, or read the Appeals and Review of Decisions (EST0015A).

Tenants who have had their rent subsidy cancelled and are subsequently required to pay the full market rent can apply to the Consumer Trader and Tenancy Tribunal if they think the rent increase is excessive. This should be done within 30 days of their rent subsidy cancellation taking effect.

 

Past Changes to $5 Minimum Rent Charge

Prior to 5 December 2005 the minimum rent charge only applied to single person households. Where the other persons in the household receiving an income, the rent subsidy was assessed using the income of the other household members.

From 5 December 2005 where a person did not receive an income they were charged the $5 minimum rent even if there were other people in the household  receiving an income. Only one person in the household without an income was charged the $5 minimum rent.

From 11 July 2006 the $5 minimum rent charge will apply to all adult household members who do not receive an income.  This includes people who only receive Family Tax Benefit payments and who do not receive an income support payment from Centrelink or the Department of Veterans' Affairs.

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Previous Rent Subsidy Assessment Rates

Table 8 - Rent Subsidy Eligibility Limits effective from 7 July 2008 - 30 June 2009

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Table 9 - Rent subsudy eligibility limit  effective from 5 December 2005 to 6 July 2008 (using gross weekly assessable income).

Table 10 - Rent Subsidy Assessment Rates prior to 5 December 2005