Calculating the Rate of Rent Assistance Payable

Rent assistance payable

The following factors affect the rate of rent assistance payable:

• the amount of rent paid or payable, and
• the person's family situation, including whether the person has a partner who is receiving a rent increased pension.    

Calculating the rate of rent assistance 

The amount of rent assistance payable is determined using the rent assistance module of the pension rate calculator appropriate to the person's family situation. This means that for every dollar of rent paid in excess of the relevant rent threshold, 75 cents of rent assistance is paid up to the applicable maximum rate. The rent thresholds and maximum rates of rent assistance are adjusted twice yearly in March and September in line with movement in the cost of living.    

Example of rent assistance calculation for a single assessment

A single pensioner is paying $300.00 per fortnight in rent as at 20 September 2021. The rent threshold for a single pensioner as at 20 September 2021 is $127.60 and the maximum rate payable $142.80. For every $1.00 of rent paid over the threshold of $127.60, the pensioner will receive 75 cents of rent assistance up to a maximum of $142.80. This is calculated as follows:

($300.00 (rent) – $127.60 (threshold)) x 0.75 = $129.30

As the rate calculated is less than the maximum rate of $142.80, the single pensioner will receive $129.30 per fortnight in rent assistance.   

Example of rent assistance calculation for a partnered assessment  

A couple is paying a total of $800.00 per fortnight in rent as at 20 September 2021. The combined rent threshold for a partnered assessment as at 20 September 2021 is $206.40 and the maximum combined rate payable $134.60 (or $67.30 each). For every $1.00 of rent paid over the threshold of $206.40, the couple will receive 75 cents of rent assistance between them (or 37.5 cents each) up to the maximum rate. For each member of the couple, this equals:

($800.00 (total rent) – $206.40 (combined threshold)) x 0.375 = $222.60

As the rate calculated is more than the maximum rate of $67.30 each, each member of the couple will receive $67.30 each per fortnight in rent assistance.

Impact of ceiling rate on rent assistance

Where a war widow/widower in receipt of ISS or SP is eligible for rent assistance, this is paid in addition to the ISS or SP ceiling rate, or if the person's rate of SP or ISS is less than the ceiling rate, in addition to that rate.

Rate of rent assistance payable to pensioner whose partner is not receiving a rent increased pension

Subject to the amount of rent paid or payable, a pensioner whose partner is not receiving a rent increased pension is eligible for the single rate of rent assistance.

A pensioner is the partner of a person not receiving a rent increased pension if:

• the partner lives with the person; and:
• the partner does not receive Family Tax Benefit that includes rent assistance; and
• either the partner:
  • does not receive service pension, income support supplement, veteran payment or a social security pension; or
  • is not receiving a service pension, income support supplement, veteran payment or social security pension the rate of which is increased to take account of rent paid or payable by the partner.