Determining affordability rating for multiple households
Sometimes 2 or more families apply for social housing together.
When assessing their affordability rating, use the lower quartile rent for the number of bedrooms required jointly for both households and split the rent between the 2 (or more households) and assess their notional Accommodation Supplement using this split rent figure.
The amount of accommodation income to deduct from the lower quartile rent should be based on the current amounts received from those who are or will be additional occupants for each applicable person in each household.
When determining the rate of unabated main benefit, work out the unabated main benefit for each of the household's household type and then add them together to get the combined residual income for the 2 households.
Affordability formula for multiple households
Step number | Description | Total $ |
Step 1 | Calculate net weekly income (including family tax credit received) for each applicable person in each household | Total A = income including family tax credit received combined for each household |
Step 2 | Calculate lower quartile weekly rent in the area the combined household needs to live. Divide this lower quartile weekly rent between the 2 households. To calculate the accommodation income, use the amount currently received from additional occupants. To calculate the Accommodation Supplement for each household, divide the lower quartile weekly rent between the 2 households and use this divided figure as the rent for Accommodation Supplement. Subtract accommodation income currently received from additional occupants and the Accommodation Supplement each household may be able to get from the lower quartile rent. | Total B = lower quartile rent for combined household minus accommodation income currently received from additional occupants and the calculated Accommodation Supplement for each household. |
Step 3 | Subtract Total B from Total A | Total A - Total B = Total C |
Step 4 | Work out the unabated main benefit the household are getting or the benefit that each household would get for each of their household type. Add these figures together. Divide Total C by total unabated main benefit the household is getting or the benefit that they would get for each of the household type (including family tax credit) x 100. | Residual income % |
Step 5 | Determine risk rating | Risk rating = X |
Note
- Accommodation income for Step 2 only includes current amounts received from those who are or will be additional occupants
From 1 July 2023, most types of Child Support are included as assessable income in the client's net weekly income for the affordability formula.
For more information see:
- Child Support is assessable income from 1 July 2023
- Risk rating for affordability
- Assessable income for affordability
- Location of accommodation
- Property type for identifying lower quartile rent
- Limited data available on lower quartile rent
- Definition of lower quartile private rent
- Determining affordability rating for students
- Extra help Accommodation Supplement
