Rent Assistance and Centrepay
Rent Assistance
Background
Rent Assistance is a non-taxable income supplement payment added on to the pension, allowance or benefit of eligible income support customers who rent in the private rental market. Pensioners, allowees and those receiving more than the base rate of Family Tax Benefit Part A may be eligible for Rent Assistance.[ top ]
Eligibility conditions
In order to receive Rent Assistance, a customer must first qualify for a social security income support payment, more than the base rate of Family Tax Benefit Part A or a service pension. Generally, in order to qualify for Rent Assistance, a person must:- pay or be liable to pay private rent (not government rent) above the applicable rent threshold for their usual home, and
- be living in Australia (except for temporary absences of up to 26 weeks).
Rent Assistance is generally not payable to a person who:
- pays rent to a government housing authority (such as a housing commission)
- owns or is buying the home in which they live (except for mobile and relocatable homes)
- lives in a care facility in an approved Commonwealth-funded bed
- has a partner who receives Rent Assistance with Family Tax Benefit
- is an allowee and has a partner receiving Rent Assistance with a pension
- is a single person without children who lives in the home of a parent and is aged under 25 (or under 21 if on a Disability Support Pension).
Special rules apply to couples who do not live together and for anyone who has to live away from their usual home in order to give or receive care.
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Rent
Rent is defined as the amount payable by a person as a condition for occupying their principal home and includes amounts paid for:- lodgings (if board and lodgings is paid, then only the amount paid for lodgings attracts Rent Assistance), or
- site fees for a caravan, mobile home, tent or other structure, or
- mooring fees for a vessel or
- services provided in a retirement village (special conditions apply) or
- respite care in a private residence.
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Payment procedures
Rent Assistance entitlement is assessed as part of the process for claiming a primary payment, i.e. pension or allowance. Rent Assistance does not have a separate income or assets test. However, the rate of Rent Assistance payable may be affected by the income or assets test applicable to the primary payment.[ top ]
Rates of Rent Assistance
Rent Assistance is paid at the rate of 75 cents for every dollar of rent paid above the specified threshold until the maximum rate is reached. The maximum rates and thresholds vary according to a customer's family situation and the number of children they have. For singles without children, the maximum rate also varies according to whether or not accommodation is shared with others. Rent thresholds and maximum rates are indexed in March and September each year to reflect increases to the consumer price index.Rent Assistance rates paid fortnightly under Social Security Act
From 20 September 2008 to 19 March 2009
| Family Situation | Maximum rate of Rent Assistance |
Rent threshold |
Rent at which max. rate of Rent Assistance is payable |
|---|---|---|---|
| Single, no children | $110.20 | $98.00 | $244.93 |
| Single, no children, sharer | $73.47 | $98.00 | $195.96 |
| Couple, no children | $103.80 | $159.60 | $298.00 |
| Partnered, illness separated, no children | $110.20 | $98.00 | $244.93 |
| Partnered, temporarily separated, no children | $103.80 | $98.00 | $236.40 |
Rent Assistance rates paid fortnightly under Family Assistance Act
From 20 September 2008 to 19 March 2009
| Family Situation | Maximum rate of Rent Assistance |
Rent threshold |
Rent at which max. rate of Rent Assistance is payable |
|---|---|---|---|
| Single, 1 or 2 children | $129.36 | $128.94 | $301.42 |
| Single, 3 or more children | $146.30 | $128.94 | $324.01 |
| Couple, 1 or 2 children | $129.36 | $190.82 | $363.30 |
| Couple, 3 or more children | $146.30 | $190.82 | $385.89 |
| Couple, illness separated, temporarily separated 1 or 2 children | $129.36 | $128.94 | $301.42 |
| Couple, illness separated, temporarily separated 3 or more children | $146.30 | $128.94 | $324.01 |
Further information on Rent Assistance paid under the Social Security Act is available from Centrelink.
Further information on Rent Assistance paid under the Family Assistance Act is available from the Family Assistance Office.
Rent verification
Customers must produce evidence (rent verification) of the rent amount paid for their accommodation. Acceptable rent verification includes a written tenancy agreement, a rent certificate where a tenancy agreement is not in place or a rent declaration in exceptional circumstances when a rent certificate cannot be obtained.[ top ]
Centrepay
What is Centrepay?
Centrepay is a Centrelink facility that allows Centrelink customers to have automatic deductions taken from their Centrelink payments for various purposes, such as payment of rent, gas, water, rates, or electricity. Once a landlord or utility service provider has been approved for registration with Centrepay, their customers who are in receipt of a Centrelink payment can nominate to use the deduction service.Do Centrelink customers have to use Centrepay?
Centrepay is entirely voluntary. Centrelink customers can choose if they wish to use Centrepay to pay their bills, or choose to stop using Centrepay if they are already using it.Does it cost anything to use Centrepay?
Centrepay is free to Centrelink customers. Landlord or service provider organisations registered with Centrepay will pay a transaction fee of $0.92 (plus GST) for each deduction transaction. The charge is levied automatically prior to the transfer of funds. The registration terms and conditions require these organisations to agree that they will not pass the transaction fee back to the customer.What are the objectives of Centrepay?
The overall objectives of Centrepay are to provide a secure living environment and enhance the personal capacity of customers. These objectives can be met through Centrepay by assisting income support customers manage their finances and by helping them to meet their financial commitments.For further information on Centrepay for customers and businesses refer to the Centrelink website.