3.8.1.10 Qualification for RA

Summary

This topic discusses qualification for RA. It covers:

• qualification criteria,
• RA and FTB,
• duplicate payments of RA,
• RA and blind pensioners,
• who cannot receive RA,
• RA during the employment income nil rate period,
• RA during the 8 week non-payment period, and
• absence from Australia.

Qualification (1.1.Q.10) criteria

To qualify for RA, an applicant must meet the criteria listed in Table 1. If more detail about a criterion is required, the second column indicates where you will find this.

Table 1

Act reference: SSAct section 23(1)-'social security pension', section 23(1)-'social security benefit', section 13(1)-'ineligible homeowner'

FAAct Schedule 1 clause 3 Method of calculating Part A rate (Method 1), Schedule 1 clause 25 Method of calculating Part A rate (Method 2)

Legislation

Qualification for RA is contained in Table 2 and the RA part of the SSAct.

Act reference: SSAct Part 3.7 Rent assistance, section 13 Rent definitions

Table 2

Act reference: SSAct section 1070L Rate for carer payments and certain age, disability support and wife pensions, section 1061P(1) to (3) Determinations of rates (AGDRP), section 1070Q Rate for youth allowance, austudy payment, mature age allowance under Part 2.12B, newstart allowance, partner allowance, sickness allowance and widow allowance, section 1070M Rate for bereavement allowance, widow B pension and certain parenting payments, section 1070N Rate for disability support pension (person aged under 18), section 1070P Rate for disability support pension (person aged between 18 and 21), section 1065-A1 Method of calculating rate (Age and DSP (blind people)), section 1070R Rate for certain parenting payments

FAAct Schedule 1 Part 5 Division 2B Rent assistance

RA & FTB

A recipient of FTB Part A at greater than the base rate may be eligible for RA. This would normally be paid with their FTB payment. However, in some cases, RA may be paid with the recipient's primary payment. The following examples further clarify the situation of paying RA with FTB or the primary payment, as legislated.

Example 1: An FTB recipient does not take maintenance action, and gets base rate of FTB Part A. This recipient is not eligible for RA under FTB. However, RA may be paid with primary payment. When maintenance action is taken, RA is no longer paid with the primary payment but may be included in the recipient's FTB Part A payment if this is greater than the base rate.

Example 2: An FTB recipient's Part A payment is reduced to base rate due to maintenance income. RA is no longer included in the FTB Part A payment and the recipient is not eligible for RA with primary payment.

Example 3: An FTB recipient not eligible for RA with FTB Part A due to rent lower than rent threshold. The recipient can receive RA with primary payment.

Duplicate payments of RA

Duplicate RA payments can occur when a recipient is paid arrears of FTB Part A that include RA when they, or their partner, have already received RA with a social security or veterans entitlement payment, for a period during which they are later found to be eligible for RA with FTB Part A. This means the recipients have been paid more RA than they were entitled to. These excess payments of RA will be recovered under family assistance legislation, through adjustment of FTB Part A arrears (including RA arrears).

There should not be any debts incurred by recipients in this situation as long as any RA entitlement with a social security or veterans entitlement payment is cancelled at the same time as the decision is made to add this entitlement to a recipient's FTB Part A rate.

Act reference: FAAct Schedule 1 clause 38J Offsetting for duplicate rent assistance under family assistance and social security law, Schedule 1 clause 38K Offsetting duplicate rent assistance under family assistance and veteran's entitlements law

Policy reference: FA Guide 3.1.4.30 Rent Assistance

RA & blind pensioners

Some blind pensioners may be better off on a rate of DSP calculated for a person who is not blind. If they are not earning any income or own any major assets, they are likely to be better off using the 'non-blind' rate as they will get RA as well. If they are earning income or own major assets then they may be better off using the 'blind' rate, which is not income or asset tested and doesn't include RA. Therefore it is important to calculate DSP at both the non-blind and blind rate, compare the outcomes and pay the higher rate of DSP.

Example: The pension rate for a 19 year old blind DSP recipient is determined under SSAct section 1066B-A1. To determine the amount of RA to be paid, firstly work out the rate under 1066A (the usual rate calculator for DSP recipients aged between 18 and 21 who are not blind) then compare that to the amount calculated using 1066B-A1 that does not include RA, i.e.:

• Non-blind rate: Calculate the basic rate plus youth disability supplement plus PhA plus RA, and then apply the income and assets tests.
• Blind rate: Calculate the basic rate plus youth disability supplement plus PhA but do not add RA or apply income and assets tests.

Who cannot receive RA?

RA is not payable to an income support recipient who:

• pays less than the threshold amount of rent according to their family circumstances (5.1.7.10),
• pays Government rent (3.8.1.80),
• is an ineligible homeowner (3.8.1.100),
• continues to be treated as a homeowner during a period of temporary absence, despite renting their temporary accommodation (some exceptions apply (3.8.1.90)),
• receives (or whose partner receives) IA (3.6.1.80),
• does not qualify because of special rules that apply to some young single people without children (3.8.1.104), or
• is paying rent as part of a 'rent to buy' scheme.
• Example: An RA applicant is purchasing a property under a 'rent to buy' scheme. They are not required to put down a large deposit on the property but are required to sign a deed of option to purchase which states that an amount of money must be paid each fortnight for a certain period (could be a long period), leading to settlement of the property. There is no landlord/tenant relationship and the applicant has security of tenure from the time the deed is signed (unless a breach of the deed occurs, e.g. the applicant stops paying the fortnightly payments). The applicant is considered an ineligible homeowner and is not eligible for RA.

Act reference: SSAct section 1070C Common requirements (about aged care residence, home ownership and rent),section 1070F(2) Rent assistance for income support recipients under 18, section 1070F(3) Rent assistance for income support recipients 18 and over

FAAct Schedule 1 clause 38C Eligibility for rent assistance

Policy reference: SS Guide 3.6.1.70 Supplementary Benefits & Employment Assistance for DSP Recipients

FA Guide 3.1.4.30 Rent Assistance

RA during the employment income nil rate period

For income support recipients apart from those receiving FTB Part A, RA forms part of the rate calculator for pensions, and allowances. When a recipient has income, the income test is applied to both the pension or allowance and RA. Therefore RA is not payable during the employment income nil rate period.

For recipients of FTB, RA is paid as part of their FTB payment. If such a recipient continues to be paid FTB Part A at greater than the base rate FTB child rate during an employment income nil rate period, they will also continue to receive RA during the employment income nil rate period.

For couples not receiving FTB, with one member on an employment income nil rate period, the member still receiving a social security pension or benefit can continue to receive RA as if their partner was still on payment. See 3.8.1.106 for rules for couples.

Act reference: SSAct section 23(4A) Despite subsection (4)..., section 23(4AA) For the purposes of subsection...

Policy reference: SS Guide 3.1.12 Employment Income Nil Rate Period

RA during an 8 week non-payment period

During the 8 week non-payment period, the member of a couple who is not serving the non-payment period, is paid RA at their usual rate. This means, the member of the couple still on payment receives their half of the RA, and the person serving the 8 week non-payment period does not receive RA.

Example: John and Margaret receive the partner rate of NSA and have no dependent children. They are entitled to the maximum rate of RA and each receives half the rate of RA payable to a couple. Margaret incurs an 8 week non-payment period. John continues to receive his half of the RA while Margaret is not paid RA.

Act reference: SS(Admin)Act Part 3 Division 3A Compliance with obligations in relation to participation payments

Policy reference: SS Guide 3.1.13 Compliance Framework for Participation Payments

Absence from Australia

RA is payable for temporary absences overseas of up to 6 or 26 weeks, if otherwise eligible.

If the recipient is still being paid their primary payment whilst overseas temporarily, and they are still paying rent for their residential premises in Australia, they may continue to receive RA.

If the recipient is granted an extension to their limited portability period, RA is also payable, if still qualified, during the extension period.

For payments with an unlimited portability period, RA is payable for the first 26 weeks only, if the absence is expected to be temporary, and not payable overseas at all in the case of permanent absences.

Act reference: SSAct section 1216 Amounts added to rate

FAAct section 62 Effect on individual's rate of the individual's absence from Australia

Policy reference: SS Guide 7.1.1.10 Overview of Portability Legislation, 7.1.2.10 General Rules of Portability, 7.1.2.20 Portability Table

FA Guide 2.1.2.30 Temporary Absence from Australia, 3.1.1.50 FTB Payments During Absence from Australia

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Last reviewed: 20 March 2013