Schedule 1: Calculation of Affordability Formula
Unofficial consolidated version of the Ministerial Direction on Eligibility for Social Housing
-- as at 4 September 2026
1 | A reference to "person" includes any other person who would, together with the person, be an applicable person in relation to any social housing that may be allocated to the person. |
Step number | Description | Total $ |
Step 1 | Calculate net [see Note 1 below] weekly income of the person (including the weekly rate of any Family Tax Credit received) | Total A: income including Family Tax Credit received |
Step 2 | Calculate lower quartile weekly rent in the area the person needs to live minus the weekly amount of accommodation supplement, calculated in accordance with Note 2 below, and the weekly accommodation income the person currently receives from any additional residents | Total B: lower quartile rent minus calculated accommodation supplement and accommodation income currently received from any additional residents |
Step 3 | Subtract Total B from Total A | Total C: Total A minus Total B |
Step 4 | Divide Total C by the weekly unabated rate of main benefit the person is receiving or would receive for that household type (including any Family Tax Credit) x 100 | Residual income % |
Note 1
After the deduction of income tax under the Income Tax Act 2007.
Note 2
Calculate accommodation supplement for the purposes of Total B by determining the appropriate rate of accommodation supplement for the person, as set out in Schedule 4, Part 7 of the Social Security Act 2018, using the lower quartile rent in the relevant area (in place of the person's actual weekly qualifying accommodation costs) and the current accommodation income that the person receives from additional residents.
