6. Tenants
This section outlines the eligibility criteria for tenants, both at the start of tenancy and during the tenancy, including where circumstances change.
6.1 Initial Eligibility
The eligibility criteria will ensure the Scheme is open to families on low and moderate incomes, individuals who are looking to rent a property for the first time, singles in private or public rental accommodation, including people working or undertaking study or training. The income thresholds for eligibility will be modelled on:
- eligibility for Commonwealth Rent Assistance (CRA); or
- eligibility for the low income Health Care Card.
While the income limits for eligibility for CRA depend on the individual circumstances of each family or individual, it is possible to make some generalisations about the type of households who will be eligible. The following table provides approximate income limits for CRA and low income Health Care Card on which tenant eligibility could be based:
| Single age pensioner | $39,000 |
| Couple, no children, both age pensioners | $65,000 |
| Working family (FTB recipient) two children under 12 years old | $67,000 |
| Working family (FTB recipient) three children under 12 | $80,000 |
| Single | $28,300 |
| Couple, no children | $47,000 |
| Couple, 2 children | $52,000 |
It is envisaged that with these income thresholds more than 900,000 individuals and families may be eligible to access the Scheme, providing a large pool of potential tenants for investors and ensuring projects comprise a suitable social mix of households.
Question 4 - The aim of this Scheme is to increase the supply of affordable rental housing to singles and families on low and moderate incomes. Do the current eligibility criteria sufficiently allow access for this group?
6.2 Continuing Eligibility
Tenancy managers will be required to assess initial and continuing eligibility of the tenant and to hold appropriate documentary evidence of those assessments. Continuing eligibility will be formally reviewed on an annual basis, within 14 days of the anniversary of commencement of the tenancy. Leases will require tenants to advise the tenancy manager if their income increases by more than 25 per cent.
Where a tenant advises that their income has increased by more than 25 per cent or an annual review indicates that their income for the preceding year exceeded the initial eligibility limit by more than 25 per cent, tenants will be given a reasonable adjustment period of 12 months before their eligibility ceases.
Tenancy managers will be required to submit annual reports to FaHCSIA verifying tenant eligibility and notifying changes in numbers, locations and tenancies managed by them under the Scheme.
6.3 Leases
Managers will not be required to provide tenants with longer term leases and/or additional rights beyond those required by relevant landlord and tenant legislation. They may choose to do so where appropriate, and it would be seen as beneficial to the Scheme.
Tenants under the Scheme could be given the opportunity of entering into leases which support security of tenure. Owners and tenancy managers will also benefit from longer leases being offered, for example, through reduced vacancy rates and minimising costs associated with end of lease and re-tenanting (for example, costs associated with new bonds and tenancy agreements).