Fixed rent

Household rents are fixed for up to 26 weeks in June and December each year, even if household income increases between fixed rent review periods. However if household income decreases, an earlier review can be undertaken.

This means that households can earn extra income in most cases without an immediate rent increase.

Decrease in household income between reviews

Tenants are able to request a rent reassessment at any time when the total household income goes down. The decrease in total household income can be due to a change in income or household members moving out. This will ensure that your household is not required to pay more than 25 per cent of total household income between fixed rent review dates.

Limitation on credit backdate

A credit backdates arising from a rent reassessment either at or between fixed rent review periods is limited to a maximum of 26 weeks (or the start of the current fixed rent cycle) from the date the tenant notifies the Office of Housing of the change.

This means that a tenant will have to provide details of a decrease in household income or a household member has moved out as soon as it occurs.

Increase in household income due to change in household members

Rents will remain unchanged during fixed rent periods, regardless of any increases in household income or the adding of household members. This also applies to increases in wages income or Centrelink income due to CPI indexation.

Where household income increases due to a change in household circumstances (for example, an adult moves into the household, a resident turns 18 years of age or a new child enters the family) rents will remain unchanged between fixed rent effective dates. Tenants will still need to provide a completed application for rebated rent and evidence of new household members at the time they joined the household.

If the tenant fails to disclose correct income details or any changes in household members at the last fixed rent review, a rebate reassessment is backdated to the date the change occurred and arrears will result due to the new rent being applied from the fixed rent effective date following the change in circumstances.

Sixteen week rent moratorium (Neighbourhood Renewal areas)

All tenants living in Neighbourhood Renewal areas who commence employment may be entitled to a 16 week 'grace' period before their rent is calculated on the additional income.

If the 16 week 'grace' period beings and ends one fixed rent period, the actual income is used to calculate rent payable from the next fixed rent effective date.

If the 16 week 'grace' period crosses a fixed rent effective date, the new rent applies from the Sunday after the expiry date of the ?grace? period.  

Assessment for self-employed tenants and tenants on fluctuating wages

Self-employed household members are required to provide a minimum 13-week profit and loss statement (including a statutory declaration) twice a year. In addition, evidence of all other income over the same 13 week period is required for a rebate assessment.

Self-employed household members who are also receiving some Centrelink income and choose to use the Income Confirmation Service are not required to provide a 13-week profit or loss statement or any additional information. When determining pension/benefit entitlement, Centrelink require self-employed clients to provide a 13-week profit and loss statement.

As the new fixed rent policy commenced part way through the 2007/2008 financial year, the new policy will be used to assess rental rebate entitlement back to 1 July 2007.

Rent for tenants on fluctuating incomes is assessed using a 13-week wage statement. This is used to fix rents for 26 weeks.

Assessment of lump sum payments intended for a past period

Any lump sum compensation payment or other lump sum amounts intended as income for a past period, for example lump sum child support payments, war widows' pensions and overseas pensions, are included as an assessable income for the equivalent future period.

This means the tenant will need to advise of any lump sum amount as soon as it is received to avoid the possibility of arrears due to a backdated rebated assessment.

Rent increases for tenants receiving family tax benefit

The Office of Housing is changing the assessment of Family Tax Benefit for rent. Rents are calculated at 25 per cent of household income except for Centerlink family related payments.

Effective from 25 May 2008, Centerlink family related payments were calculated at 12 per cent and will increase to 15 per cent over the next three years, as outlined below

Household income (25 %) + Family related payments (12 %) = Rebated rent amount

Rent increases each year will range between $2.00 per week, up to around $5.00 per week for parents with five or more children. Most parents will have a rent increase of no more than $3.00 per week in the first year based on current Family Tax Benefit rates. Families with children will still pay well below 25 per cent of household income as rent.

Effective from June 2009, rents are calculated at 13 per cent on Centrelink family payments.