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Accommodation Supplement: Contents

Homeowner renting out part of their property

Where a client who owns their own home is renting out part of a property (for example another house on the same section, a self-contained flat that is a part of the home or part of the property to a person not living there) the client's Accommodation Supplement is assessed on the proportion of the property they live in.

Calculating the cost of part of the property not lived in

Use the following calculation to determine the cost of part of the property not lived in:

  • Determine the total costs for the property.
  • Calculate the proportion of the floor area that the client lives in.
  • Multiply the total costs by the proportion that the client does not live in.

This calculates the cost to deduct from the client's accommodation costs to determine the weekly qualifying accommodation costs.

Note if a client uses part of their property primarily for business purposes or has accommodation income, this also needs to be deducted from the accommodation costs to determine the weekly qualifying accommodation costs.

Example

Mortgage (including interest)

$5,000 per month (pm)

Rates

$140pm

Insurance (excluding contents)

$60pm

Repairs and maintenance

$100pm

Total costs for property

Total A

$5,300pm

Total square metres

Total B

300m2

Square metres of the property that the client does not live in

Total C

90m2

Proportion that the client does not live in

Total C รท Total B = Total D

0.3

Cost of part of property not lived in

Total A x Total D

$1,590pm

Weekly qualifying accommodation cost

Accommodation costs (Mortgage)

$5,300pm

Less cost of part of property not lived in

$1,590

Less accommodation income

$0

Equals weekly qualifying accommodation costs

$3,710pm = $856.15pw

The income, if any, is the rent received from the room less the total accommodation costs for the property.

For more information see:

    Legislation

    • accommodation costs (definition) section 65AAA Social Security Act 2018
    Top

    Accommodation income is rent, board or additional occupant contribution payments a client gets from someone living in the same premises.

    Accommodation income is deducted from a client's accommodation costs when calculating a client's weekly qualifying accommodation cost.

    Accommodation income includes: