Example of debt as result of undeclared information
The following examples are situations when Income Related Rent debt may be created as the result of a client not declaring information to MSD.
These examples are based on 2 different debt provisions.
Example 1 - Undeclared household income
The client's next scheduled review date for their annual review of Income Related Rent is 15 December 2016.
During the review a client provides additional information showing they had a change in circumstances on 10 May 2020, which they did not tell MSD about at the time.
The client's income increased by an additional $60 per week from 10 May 2020.
An investigation by the Client Service Integrity ends on 30 January 2023, and finds the client had good and sufficient reason and had not intended to defraud MSD.
The client's rate of Income Related Rent is recalculated, and they are notified along with their housing provider of the new calculated rate of Income Related Rent.
The housing provider informs the client of the new rate of rent they will need to pay, and the date the new rent amount is to be paid from. This is the 22 February 2017, the first rent effective date after the 14 days' notice period plus the service period.
Debt is established from 10 July 2020 (61 days from the date of the client's change in circumstances) to 21 February 2023 (the day before the rent effective date).
Example 2 - Undeclared information during social housing eligibility assessment
On 20 April 2022 a client attends their social housing eligibility assessment and fails to declare details about their partner's assessable income.
The client had several opportunities to advise MSD of their partner's income but on all those occasions they did not advise MSD their partner was in full-time employment.
MSD gets information about the client's circumstances on 1 August 2022. An investigation by Client Service Integrity establishes on 3 October 2022 that the client's partner was in full-time employment when they first applied for social housing.
The client's rate of Income Related Rent is recalculated and the client and their housing provider are told of the client's calculated rate of Income Related Rent.
Income Related Rent debt is established from the start of the tenancy to 31 October 2022 (the rent effective date notified by the housing provider).
The client was not given the 61-day period from the start of the tenancy because Client Service Integrity determined the client provided misleading information to MSD.
