Subsidy for community housing providers with market rent
The Income Related Rent subsidy that can be claimed by community housing providers is the difference between the:
- rate of Income Related Rent calculated and notified by Work and Income (being the notified rate that was required to be charged within the fortnightly claim period, starting from the earliest possible date that it could have been charged) and
- market rent rate for the property
Note GST cannot be claimed, as GST does not apply to residential tenancies.
Example 1
Income Related Rent rate is lower than the market rent rate.
Market rent rate for the property | Income Related Rent rate | Rent charged by community housing provider | Income Related Rent Subsidy |
$270 | $115 | $115 | $155 |
Example 2
Income Related Rent rate is higher than the market rent rate.
Market rent rate for the property | Income Related Rent rate | Rent charged by community housing provider | Income Related Rent Subsidy |
$405 | $430 | $405 | $0 |
Example 3
Community housing provider charges a rate lower than notified Income Related Rent rate due to special circumstances.
Market rent rate for the property | Income Related Rent rate | Rent charged by community housing provider | Income Related Rent Subsidy |
$300 | $250 | $200 | $50 |
For more information see:
