Tenant or homeowner has a boarder

If a tenant or homeowner has one or more boarders, 62% of money received from the boarders is accommodation income and deducted from a client's accommodation costs (rent or mortgage interest and principal repayments) to determine the clients weekly qualifying accommodation costs when assessing the rate of Accommodation Supplement.

When money received from boarders is more than the client's accommodation costs (after the deduction of the cost of any part of the property not being lived in by the client), the excess amount is income. In this case, the client will have no weekly qualifying accommodation costs and will not be eligible for Accommodation Supplement.

Note if a client doesn't live in part of their property, the cost of that part of the property is deducted from their accommodation costs before deducting money received from boarders when calculating the weekly qualifying accommodation costs.

For more information about how to calculate income from rent see:

• Rent and board payments

Al is single and renting a 2-bedroom house for $550 a week. He takes on a boarder who pays him $350 a week. His weekly qualifying accommodation costs are $333 ($550 less $217 (62% of $350)). There is no income charge.

Jinwoo owns a 2-bedroom house and is paying off his mortgage. His accommodation costs are $300 a week. He has a boarder who pays $500 a week. Jinwoo will not qualify for Accommodation Supplement as 62% of the board payment, $310, is more than he pays for his accommodation costs. There will be a $10 income charge ($310 less $300).

For more information see:

• Tenant renting out a room
• Homeowner renting out a room
• Homeowner renting out part of their property
• Weekly qualifying accommodation costs