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Income Related Rent : Contents

Calculating rate using household income

Generally, the rate calculated using the household's income will be higher than the rate calculated using the applicable Jobseeker Support rate when an applicable person is receiving:

  • income from sources other than benefit assistance
  • benefit assistance or
  • benefit assistance and other income

Note if an applicable person is getting a reduced rate of benefit, due to income MSD must include the reduced rate of benefit (before any deductions are made or sanctions applied, e.g. court fines or MSD debt) and any other assessable income.

Calculation formula

The rate of Income Related Rent calculated using the household income is the amount that is the total of:

  • 25% of the assessable income, at or below the income threshold and
  • 50% of the assessable income above the income threshold plus
  • a portion of the tenant's and their partner's family tax credit entitlement plus
  • 62% of contributions from additional occupants 

Note the rate of Income Related Rent calculated is rounded down to the nearest dollar.

Legislation

An applicable person is:

and