RENT TO INCOME POLICY

The level of subsidy is calculated so that no household need pay more than 25% of gross assessable income in rent. Subsidised rents are assessed differently according to the date the tenant occupied a property, due to policy changes which came into effect after a tenant occupied and which were not retrospective for existing tenants. Because of this, there has been a range of percentages of income paid as rental from 23% to 25% between tenants, depending upon the date of occupation From February 2000 the base rate of calculation will be 23% for those tenants previously charged at lower rates.

Tenants occupying on or after 21 July 1997

1. Tenants occupying a Homeswest tenancy on or after 21 July, 1997, as a new occupation, will pay 25% of gross household assessable income as rent.

1.1 The assessable component of Family Payments income is assessed at 10% of Additional Family Tax benefit A and 5% of Family Tax Benefit Part B, Basic Family Tax Benefit Part A is non-assessable. For the third and subsequent dependents a fixed $ amount per child per week is applied. This amount is reviewed annually.

1.2 The income of other household members over the age of 21 years will also be assessed at 25% for rent. Those under the age of 21 years, including those with student incomes and under the age of 25 years will be assessed at 10% for rent.

1.3 The working allowance of $30 per week is deducted from the gross wages income for all working household members over the age of 21 years, throughout the term of the tenancy whilst the member continues to work. (See also 11 to 11.9.)

Tenants paying 21.2% of income as rent prior to 1 August, 1997

2. Tenants paying 21.2% of income as rent prior to 1 August, 1997, have had this percentage of income increased by increments to 22.5% of gross household income. From February 2000 the base rate of 23% will apply. The base rate of 21.9% or 22.5% of gross assessable income under $354 per week is paid as rent, after which rent is assessed at 30% per dollar in excess of $354, up to a maximum of 25% of income or the maximum market rent for the property, whichever is the lower.

Note: The threshold limit of $354 per week will be abolished for tenants occupying prior to 1 August 1997 and will apply from 31 October 2005 at the annual income review. The rent from this time will be assessed at 23% of the assessable income or market rent whichever is the lesser.

2.1 Tenants in apartments are included in this category of tenant. Such tenants have paid 21.2% of gross household income as rent, regardless of occupation date.

2.2 From August 1997 the base rate was increased to 21.9%. From August 1998 the base rate was increased to 22.5%. From February 2000 a base rate of 23% will apply.

Tenants paying 22.5% of gross household income prior to 21 July, 1997. 3. Tenants paying 22.5% of gross household income prior to 21 July 1997, will be assessed at 23% from February 2000.
Austudy/Abstudy 4. Austudy/Abstudy grants and the Loans supplement are treated as income and assessed depending upon circumstances. Students can choose to exchange up to half the grant entitlement for double the amount as a supplement loan. The loan amount is indexed to the CPI and not repaid until the student’s income is equal to the average weekly earnings.	4.1 Where the recipient is the tenant or is a signatory on the tenancy agreement, 100% of the Austudy/Abstudy allowance is assessed for the purpose of calculating rental payments, including the Dependent Spouse Allowance. 4.2 Where a student is in receipt of the Austudy/Abstudy Loans Supplement, their income will be assessed at the level of the full grant for which they were eligible, prior to borrowing the supplement. To determine the level of the full grant, divide the loan supplement amount by two and add to the net grant amount before deductions, before calculating a weekly figure.
Other Household members 5. The income of other household members will be included in a calculation of gross household income, depending upon circumstances.	5.1 Other household members are dependent or non dependent members of a household, who are not party to the tenancy agreement. This includes non family members and boarders. 5.2 Persons occupying the tenancy on a casual basis, i.e.. Visiting relatives, who remain for two months or longer will have their incomes assessed as household members. 5.3 For households that first occupied prior to 31 August, 1992, and/or occupied apartments prior to 21 July 1997, 23% of the non-dependent’s income is considered for the rent to income assessment. E.g.. $160 X 23% @ 23% = $8.46. This is applied to all over the age of 16 years. From February 1999, where there is a change of circumstances for other household members in this group, 100% of income will be assessed for rent to income. E.g.. A household member turning 21 years or a new non-dependent moving into the household. Dependents turning 16 years will be assessed at 10% for rent.

	5.4 For all households that have occupied since August 31, 1992 and those occupying apartments since 21 July, 1997 where the other household member is under 21 years of age, their income will be assessed at 10% for rent. Where the other household member is 21 years or over, 100% of income will be included for the purposes of calculating a rental assessment. 5.5 Other Householders Rent Model 1 from 31 October 2005 16- 21 years old or student under 25: 10% of their income assessed and added to household rent 21 years and over will have their rent assessed at either 23% or 25% of their income added to household rent. Non dependants will be phased in over 4 years as follows: 31 October 2005 – Increase the assessment rate from 5.29% to 10% of income and added to rent 31 October 2006 – Increase the assessment rate from 10% to 14% of income and added to rent 31 October 2007 - Increase the assessment rate from 14% to 17% of income and added to rent 31 October 2008 - Increase the assessment rate from 17% to 23% of income and added to rent
Gross Assessable Income 6. Gross assessable income is determined by calculating 100% of the income of a tenant, partner and co-applicants and the percentage required of other household members. Income types which are excluded from calculation are deducted and the figure which remains is the gross assessable income.	6.1 Gross assessable income for the purpose of calculating rental payments is based on income at the time of signing the Tenancy Agreement, or at the time of the application for a rent to income subsidy.
Non Assessable Income Types 7. Non assessable income type, is defined as non income tested allowances and benefits which are paid for a specific purpose and which are usually required in their entirety for that specific purpose. These are: Austudy/ Abstudy Pensioner Educational Allowance Austudy/Abstudy Fares Allowance Abstudy Incidentals Allowance. Basic Family Payment (minimum standard payment) Family Tax Payment Bereavement payment. Child Care Rebate Carer Allowance (Previously Child Disability Allowance) Incentive Allowance

Basic Family Tax Benefit Part A

7.1 The assessable component of Family Payments income is assessed at 10% of Additional Family Tax benefit A and 5% of Family Tax Benefit Part B, Basic Family Tax Benefit Part A is non-assessable.

Isolated Children’s Allowance
Carer Allowance (previously Domiciliary Nursing Care Benefit)
Mobility Allowance
Multiple Birth Allowance.
Double Orphans Pension
Orphan’s, Ward of the State and Foster Child’s Allowance.
Pharmaceutical Allowance
Remote Area Allowance
Telephone Allowance
Training Allowance
• $50 of weekly income for working disabled

See HOUSING FOR PEOPLE WITH DISABILITIES.

Employment Entry Payments
Education Entry Payments
Maternity Allowance and Maternity Immunisation Allowance
Department of Veteran’s Affairs
Attendant Allowance
Vehicle Assistance Scheme
Clothing Allowance
Decoration Allowance

7.2 Any ex-gratia one off lump sum payments made by the Department of Veteran’s Affairs is not taken into account when assessing rent. Examples:

Ex-gratia F-111 lump sum payment of either $40,000 or $10,000 made to eligible military personal, public servants and civilian contractors.
One off payment in June 2001 of $25 000 to War Veterans or widows/widowers.

Subsequent interest earned will be assessed from the following annual review.

Recreational Transport Allowance War Disability Pension (General rate) Intermediate War Pension	7.3 Where the DVA War Disability Pension, Intermediate, Extreme, and TPI pensions are the sole source of income or only a part Centrelink pension or allowance is paid, then the appropriate pension rate (single or couple) is deemed for that household for the purpose of the rent to income assessment.
Extreme Disability Adjustment Totally Permanent Invalid (TPI) War Pension English War Disability Pensions Pension Supplement (GST component) Local Government	7.4 Elected Member Allowance that is paid to cover expenses is exempt of being treated as income if the amount of allowance actually used is on expenses. Any excess allowance is to be treated as income.
Income derived from Assets 8. Tenants and other household members are required to declare all financial and property assets and income derived from these assets. Where an income from these assets is not provided, is not received, cannot be substantiated or does not accrue, then an income will be deemed, based on the net value of the asset, for the purposes of the rent to income assessment.	8.1 Cash assets - the deeming rate that is applied to the value of cash assets is in line with Centrelink. Deeming Rate for financial assets. (See ELIGIBILITY POLICY for definition). 8.2 House and Land or Land - the net value of property assets are deemed at an annual rate of 4%.
Documentation required for a rent to income assessment 9. Applicants will be required to provide documentation as proof of income.	9.1 Centrelink pension or benefit recipients will need to provide a Statement of benefit (To Whom it may Concern Letter) from Centrelink that is not more than four weeks old. Homeswest reserve’s the right to request such proof of a lesser period. Evidence of claim for benefit is not sufficient. 9.2 Wage and Salary earners will need to provide their last three months salary advice slips, or alternatively have their employer complete Employer Income Verification Statement on the Application Form. 9.3 Overseas pension recipients must provide proof of the pension source and amount.

	9.4 Tenants not in receipt of an income or an income lower than the base statutory benefit, but who are eligible to make application for a statutory benefit but choose not to, will be deemed to be receiving the base statutory benefit for which they would be eligible for the purposes of determining a subsidised rent. Examples: Examples: A person who loses their job, but would prefer to live off savings than apply for unemployment benefits. A person who loses all or part of their payment for a period because they have breached the Centrelink Activity Test.
Self Employed Tenants 10. Self employed tenants will have their rent to income assessed on the basis of their taxable income or an equivalent award wage for the occupation in that industry, whichever is the greater.	10.1 Self-employed tenants will need to provide their last financial year income tax assessment from the ATO. If they have difficulties in supplying this documentation, they will be assessed at the equivalent award rate for the occupation in that industry. 10.2 Where a household continues to be eligible for part or full Centrelink entitlements, including the New Enterprise Incentive Scheme (NEIS), then the assessable income will be the Centrelink entitlement or equivalent and the estimated profit from self-employment. 10.3 Where a couple are in a business partnership and the level of assessable income is less than an award wage for a similar occupation or trade, then only one wage is deemed for the purpose of assessing rent. 10.4 Equivalent award wages can be found on the Department of Consumer and Employment Protection website at: www.docep.wa.gov.au/wageline. The following is provided as an example only. Taxi Drivers: A taxi driver is considered self-employed. The equivalent award wage for a taxi driver is the Transport Workers (Passenger Vehicle) Award. A fulltime taxi driver working 38 hours per week would have an assessable income of the award rate. A part time taxi driver’s assessable income will be calculated by multiplying the number of hours worked by the hourly rate. The hourly rate is calculated by dividing the award rate by 38 hours.
Working Allowance 11. An amount of $30 per week is deducted from the assessable income of households moving from a statutory income to employment, for a twelve-month period for households that occupied prior to 21 July 1997. For tenancies occupying after that period, see 1.3.	11.1 This is to cushion the financial impact of a move from subsidised rent to a higher rent due to a higher income. 11.2 Any income derived from employment that is less than $30 per week is not included as household income. 11.3 A statutory income refers to income types such as New Start, Supporting Parent, Austudy/Abstudy and other pensions and benefits. 11.4 Wages include wages/salaries, and labour market programs such as training wages, traineeships, CDEP, apprenticeships.

11.5 It is not available to tenants already in employment and/or moving from part time to full time work or to tenants moving from full time employment to part time employment.

11.6 It is available to only one member of a household at a time, if more than one member enters the work force.

11.7 Backdating of a Working Allowance is available as per policy.

11.8 The Working Allowance is available to tenants entering both full and part time work.

11.9 It is applicable to non-dependent household members over 21 years of age, where income is assessed at 100%.

Absentee Tenant Minimum Rent

12. Tenants required to enter supported accommodation will have their rent reduced to the minimum rent of $10.00 per week for a period of three months.

12.1 This is applicable to tenants who are entering into a specific rehabilitation program, respite, nursing home and outpatient treatment where they are required to pay rent or lodgings to another organisations.
12.2 Tenants who are escaping Family and Domestic Violence and are residing in a Women’s Refuge will have their application for Absentee Tenant Minimum Rent policy considered after a minimum of seven (7) days in a Women’s Refuge. The tenant must provide documentation to verify that they are residing in a refuge and unable to return to their tenancy. Verification may include letter from the women’s refuge, copy of current violent restraining orders, support letter from the Police Domestic Violence Resource and Referral Centre. The letter must advise the reason why they are unable to return to their property. (Refer to Family & Domestic Violence policy).
12.3 Public housing tenants are eligible for Centrelink rent assistance when in supported accommodation.
12.4 The tenant’s file to be placed in “bring up” for review at the end of three months. Minimum rent can be cancelled at any time during the three-month period.

	12.5 If there are other household members the rental subsidy is reassessed on their income only and no details are entered for the tenant. 12.6 Tenants are to provide supporting documentation verifying that they are entering into a specific program to be entitled to the Absentee Tenant Minimum Rent policy. Should they not remain in the program or are absent from the property for a period that is less than three months Homeswest is to be advised immediately they return to the tenancy and a new subsidy form is to be completed and submitted to Homeswest. 12.7 Homeswest is to be advised of relevant contact address and telephone number/s and who will be taking care of the property for the duration of the absence. Homeswest will enter into negotiations with the tenant or nominated person in regard to who will be taking care of the property during the tenant’s absence from the property.
Lump Sum Compensation Payments 13. Tenants in receipt of a lump sum compensation payment will continue to have rent assessed on the same income they received prior to the receipt of the lump sum payment, for the period that they are excluded from receiving a Centrelink benefit or allowance.	13.1 Centrelink exclude a beneficiary from receiving a pension or allowance for a period of time after the receipt of a lump sum compensation payment. The exclusion period is based upon Centrelink calculations regarding the component of the payment that is for loss of income. 13.2 Any interest received from the lump sum payment will be included as income. 13.3 Where the partner continues to be eligible for Centrelink entitlement other than Family Allowance, then this amount may not be assessed if this causes income to be double counted.
Tenants with Changed Circumstances 14. Tenants who leave their tenancy for longer than 6 months, are not entitled to a rent to income subsidy and will have any current subsidy cancelled.

15. Tenants undertaking additions to a Homeswest property, including granny Flats, at their own expense on Homeswest land, will have their rent assessment reviewed if there are additional household members occupying the additions.

15.1 Such occupants will be regarded as other household members.

15.2 See also Tenancy Management, Excess Occupants and Visitors, for visitors staying in excess of 2 months.

Tenants housing Migrants with Assurances of Support and Asylum Seekers.

16. A Migrant with an Assurance of Support or seeking asylum in Australia and being housed by a tenant is not regarded as being in receipt of a statutory income and rental payments will be assessed as in 16.2.

16.1 Such people are not entitled to an income from Centrelink and are not to be confused with tenants who are eligible for such an income and do not make application (See 9.4)

16.2 Single tenant

Where the migrant/asylum seeker is the partner of a single tenant, although that person is not eligible for a benefit, if the tenant is in receipt of a benefit Centrelink assess the tenant as a couple and give him/her half the couple rate. Therefore, Homeswest will assess the tenant at this rate of income.

Example: Tenant with one child housing a migrant/asylum seeker where they are partners, which is the most common situation encountered by Homeswest.

New Rental Assessment with
Previous Rental Assessment Migrant/Asylum Seeker as
Household Member

Newstart Single Rate Newstart Couple Rate
(with child) pw = $189.73 (with child) pw = $158.30

No partner = $ Nil Partner = $ Nil

AFTBA = $39.41 AFP = $ 39.41

FTBB= $34.79 FTBB $34.79

Assessed Income = $263.93 Assessed Income = $232.50

Rent Payable pw = $ 53.10 Rent Payable pw = $ 45.20

Where the migrant asylum seeker is not a partner, there will be no change to the rent assessment.

	16.3 Transfer to alternate accommodation in order to accommodate the increase in family size, is not available.
Backdating of rental subsidies/payments 17. Tenants are required to advise Homeswest immediately of any change to household composition or in the event that household income increases or decreases by $10 per week or more.
18. Homeswest reserves the right to backdate rental payments, where a tenant’s household income increased by a minimum of $10 per week for a three month period or more and the tenant did not advise Homeswest.	18.1 Rent will be backdated to the date that the household income increased by $10 per week or more. Discretion may be exercised by regional management, where it is considered that the tenant did not understand the requirement, or on compassionate or medical grounds. Example: Tenant with an intellectual disability. 18.2 Subletting – Refer to Tenancy Management Section 16
19. Homeswest is not liable to repay any overpayment in rent, if a tenant fails to notify of a decrease in household income.
20. Where a tenant fails to return a rental subsidy form within three (3) months of the due date and the subsidy has been cancelled, the rent subsidy will not be backdated and will apply only from the date that the subsidy form was submitted.	20.1 Delegated Authority to authorise the backdating of rental payments/subsidies greater than three months are: Regional Manager, Manager Rental Services, Assistant Regional Manager. Area Manager 20.2 Regional management in relation to medical/compassionate grounds can exercise discretion.
Child maintenance payments 21 Child maintenance payments will assessed as part of the household income.	21.1 Discretion may be exercised where it can be proved that maintenance payments are not regular. 21.2 Spouse or child maintenance payments will be assessed as per Model 1 & 2 for tenants occupying prior to 21 July 1997. Tenants occupying after 21 July 1997 will be assessed as per Model 3. Model 1 & 2 @ 18% of maintenance received Model 3 @ 20% of maintenance received 21.3 From 31 October 2005 Rent Models 1 and 2 will be assessed at 20% of maintenance received.