3.8.1.80 Government Rent & RA

What is Government rent?

Government rent means rent payable to one of the SHAs named in SSAct subsection 13(1). It does not include rent paid to a SHA in their capacity as property manager or rent collector on behalf of another organisation. If the name of an authority referred to in section 13(1) is altered by the law of a State, the Northern Territory (NT) or the Australian Capital Territory (ACT), the definition continues to apply to the authority under its new name (section 13(5)).

An updated list of SHAs is as follows:

Act reference: SSAct section 13(5) If the law of a State...

National Rental Affordability Scheme (NRAS)

A person who is renting a dwelling under the NRAS may be eligible for RA. NRAS dwellings are owned by financial institutions, non-profit organisations and local councils and are rented at 20% below market rate to eligible individuals and families.

Rent collected for NRAS dwellings is NOT considered as 'government rent'.

Community housing

Eligible recipients who rent housing from community housing organisations may be eligible for RA. This includes those living in community housing accommodation specifically provided for Indigenous people, people with disabilities, refugees etc.

Community housing organisations are legally separate entities to state or territory government housing authorities. Community housing providers are responsible for the day-to-day management of their housing stock, including the setting of rents, and are accountable to the relevant state or territory government regarding the use of State and Commonwealth funding provided for community housing.

An exception to this rule occurs when a community organisation is delegated the legal right to rent out government housing trust properties, on behalf of the housing authority. In such cases, if the rent collected goes directly back to the state or territory government housing authority, it is classified as 'government rent' under social security law.

Government rent does not include Commonwealth housing.

Example: DHA or DIAC clients.

Act reference: SSAct section 13(1)-'Government rent'

Policy reference: SS Guide 3.8.1.108 Assessing RA Payable

RA & Government rent

A person who pays Government rent is not eligible for RA, even if they are paying market rent or have a sub-tenant. Market rent is determined by the SHAs as an amount of rent that would be payable for an equivalent private dwelling in the particular area.

Exception: RA may be paid to those people affected by the collapse of Homefund and are now paying rent to the NSW Government. RA is calculated on the amount of money they actually pay.

Sub-tenants in public housing (1.1.S.400) may be eligible for RA in limited circumstances as described further on in this topic.

Explanation: A resident of a SHA dwelling who pays lodgings to the primary tenant (1.1.P.400) is referred to as a sub-tenant.

Person who sub-lets in public housing

A sub-tenant in public housing cannot qualify for RA unless:

• the primary tenant pays market rent as determined by the SHA, or
• the primary tenant has advised the SHA that they have a sub-tenant, and
• the sub-tenant's income has been taken into consideration when calculating the rent payable by the primary tenant.
• Explanation: New rules were introduced from 1 January 1998 for assessing eligibility for RA to people who are sub-tenants in a dwelling where a SHA is the direct landlord. These rules were applied to all new recipients or those who had a change of circumstances after 1 January 1998. Data collection to identify sub-tenants amongst existing recipients was completed in April 1998. Existing recipients who were affected by the measure were then notified before cancelling their RA. No debts were raised for RA payments made to existing recipients in this group for the period between 1 January 1998 and when the data collection was complete in April 1998.

Act reference: SSAct section 13(3AC) Person living in premises where another person pays Government rent

Rent relief

Some State and Territory Governments operate rent relief schemes. These schemes have varying eligibility criteria for RA provisions. See 3.8.1.108 for a full list of operating schemes and how to assess RA payable.

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Last reviewed: 11 August 2011