Consequence for tenants not advising of a change in circumstances

If the client does not advise of any change in their circumstances that may affect their eligibility for Income Related Rent, social housing or their particular social housing property, they may be committing an offence.

MSD may choose to prosecute the client if they have omitted information deliberately to mislead or attempt to mislead MSD to:

• be eligible for social housing or
• continue to be eligible for social housing or
• get a particular social housing property or
• get Income Related Rent or
• get a higher rate of Income Related Rent

The maximum penalty for this type of offending under the Public and Community Housing Management Act 1992 is a term of imprisonment no longer than 12 months or a fine not over $5000, or both.

When the offending has been significant and the circumstances warrant, MSD can file charges of obtaining by deception under the Crimes Act 1961, with a maximum penalty of 7 years imprisonment.

You will need to make sure clients are aware of this penalty when informing them of their duty to advise any change in their circumstances.

Income Related Rent debt is created when a lower Income Related Rent has been calculated for a client than they were entitled to for a past period.

Income Related Rent debt established due to fraud is calculated from:

• when the client first started paying Income Related Rent or
• the date the fraud started to either, the date the fraud ended or the day before the rent effective date (whichever is applicable)