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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 rent certificate.

Example 1: Two NSA recipients share a home. The total rent paid on the premises is $200 per week, therefore the total rent claimed by the 2 recipients cannot exceed $200 per week. How the rent is split between the 2 recipients is determined by the recipients, they can claim $100 each or one can claim $120 and the other $80, etc.

 

Example 2: An NSA recipient shares their home with another person who does not receive a Centrelink or FAO payment. The total rent paid on the premises is $200 per week, therefore the total rent claimed by the recipient and the rent paid by the non-recipient cannot exceed $200 per week. The recipient must state the rent they pay as well as the amount paid by the housemate. RA is calculated only on the amount paid by the recipient.

 

Example 3: A 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 claimed by the household cannot exceed $150 per week. If the daughter and son claim $65 per week rent each, then the parent's RA is calculated on $20 per week rent ($150 minus $130).

 

Example 4: A recipient pays rent of $150 per week for a household, as claimed on a rent certificate. The recipient's son also lives in the house. The total rent claimed by the household cannot exceed $150 per week. If the son claims $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 5: A recipient pays rent of $240 per week for a household, as claimed on a rent certificate. Two exchange students also live in the house. The total rent claimed by the household cannot exceed $240 per week. If the students each claim $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 x $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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Last reviewed: 7 September 2009


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Last Edited: 26/03/2012 11:33:20 AM


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