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.
For more information see:
Legislation
- Calculating income-related rents by reference to household type section 107(1)(a) Public and Community Housing Management Act 1992
- Public and Community Housing Management (Prescribed Elements of Calculation Mechanism) Regulations 2018
