Weekly qualifying accommodation costs

From 2 March 2026, a client's weekly qualifying accommodation costs must be determined to assess the rate of Accommodation Supplement a client can get. Accommodation Supplement paid prior to 2 March 2026 will be based on previous settings.

The weekly qualifying accommodation cost is calculated based on the client's accommodation costs, the part of the property they live in and any accommodation income they get.

Accommodation costs

The client's accommodation cost is the amount they pay for rent, board or home ownership.

Not part of property they live in

When a client doesn't live in part of their property, that part of the property is deducted from their accommodation costs when calculating the weekly qualifying accommodation costs.

This includes when part of the property is:

• primarily used for business purposes,
• self-contained and rented to another person/s, or
• rented to another person/s who does not reside there

For information on how to calculate part of a property see:

• Self-employed claiming home office expenses
• Homeowner renting out part of their property

Accommodation income

When a client gets rent or board payments from someone living in the same premises, it is accommodation income and is deducted from their accommodation costs when calculating the weekly qualifying accommodation costs.

Accommodation income includes:

• rent a client gets from another person (not being additional occupants or boarders) residing in the same premises, except where the person paying the rent is in a self-contained part of the premises or the rent payment is part of the income of a business on the premises
• 62% of payments for board a client gets from another person residing in the same premises, except where the board payment is part of the income of a business on the premises

Note when accommodation income 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 and must be charged against any financial assistance the client gets. In this case, the client will have no weekly qualifying accommodation costs and will not qualify for Accommodation Supplement.

When calculating the weekly qualifying accommodation costs to assess Accommodation Supplement, the cost of part of the property not lived in must be deducted from the client's accommodation costs before any accommodation income.

For example:

Franky rents a 3-bedroom house for $850 per week. He uses his home to run a bespoke boat building business with a workshop in the double garage and a bedroom as an office. He calculates the percentage of home space used for his business to determine the business-related costs from using his home.

Franky uses 45 percent of the property where he lives (135sqm/300sqm) for his bespoke boat building business and claims the portion of business home expenses of $19,890 per year ($382.50 per week) in his business accounts.

Franky's friend, Chopper, also boards with him and pays $400 per week (62% of the board payment is $248 accommodation income).

Franky's weekly qualifying accommodation costs for Accommodation Supplement exclude the portion of his home that he uses to run his business and are then reduced by 62% of the board payments he gets. His weekly qualifying accommodation costs are calculated as $219.50 per week.

Cost of part of property not lived in

Accommodation income

Weekly qualifying accommodation costs