Refunds - paying to the client
Where the client has paid the higher amount of rent that the housing provider has charged the refund is due to the client.
This is because the refund is essentially the same amount of rent the client has overpaid to the housing provider.
A refund may be used to repay current MSD debt only if the client agrees to this. If the client does not agree, or you are not able to contact the client, the refund must be issued directly to the client.
Example
The client's rate of Income Related Rent and rate of rent charged was $100 per week.
A decision is made to backdate the rate of Income Related Rent and issue a refund. The new rate of Income Related Rent is $52 per week.
The client has paid the higher amount of rent to the housing provider.
The refund period is between 15 January 2023 and 5 February 2023. During this period the client made four rent payments.
Refund period (15 January 2023 and 5 February 2023) | |||||
Week 1 | Week 2 | Week 3 | Week 4 | Totals | |
Rate of Income Related Rent and rent charged | $100 | $100 | $100 | $100 | $400 |
Backdated rate of Income Related Rent | $52 | $52 | $52 | $52 | $208 |
Actual rent amount paid by client to housing provider | $100 | $100 | $100 | $100 | $400 |
The difference between the rate of Income Related Rent and the new lower rate for the period is $192. This is the total refund amount for the period. A refund of $192 would be issued to the client.
