Changes in income - effect on emergency housing contribution rate
The income of the client (and their partner, if any) is assessed at every application for an Emergency Housing Grant. If their income changes, it could affect the emergency housing contribution.
There may be times during the grant period when a client or their partner's income changes after MSD has calculated their contribution.
In these cases, MSD can only reassess the contribution based on the new income amount if it would make result in a material difference to their contribution.
A material difference is when, based on the new income amount, the new calculated contribution rate is:
- a net increase of $5 or more per week to their contribution rate or
- a net decrease of more than $1 per week to their contribution rate
Any difference to a client’s contribution would result from their net weekly income increasing by $20 or more or decreasing by $4 or more.
When considering whether to reassess the contribution, all relevant circumstances need to be considered.
Decrease in client's contribution
If the change in income means there is a decrease to the client's contribution, MSD will generally reassess the contribution rate from the date of the change in income.
Increase in client's contribution
If the change in income means there is an increase to the client's contribution, MSD generally does not reassess the client's contribution.
However, there may be some situations when we would reassess the client's contribution for an increase in income. For example, MSD may reassess the contribution for an increase when the client has a history of declaring their income late or incorrectly.
In all cases, the contribution amount cannot be more than the actual cost of the emergency housing.
Note if the client or their partner's income has increased, MSD also needs to ensure the client still qualifies for an Emergency Housing Grant.
Annual General Adjustment occurs during a grant period
If there is a change in income due to the annual general adjustment, MSD does not generally reassess the contribution rate from the date of the change in income (1 April).
A client’s contribution will be reviewed by MSD when requested by the client if the annual general adjustment would result in a material difference to their emergency housing contribution.
