Assessable and non-assessable income and assets tables

This subsidy is paid to clients in addition to the Child Care Subsidy. This subsidy will provide targeted additional fee assistance to families and children accessing affordable child care. The Additional Child Care Subsidy has four elements

• Child wellbeing
• Grandparents
• Temporary Financial Hardship
• Transition to Work

A payment received by the client when a child is unable to attend a local government school because of geographical isolation, disability or special needs. The client will receive either a

• Boarding Allowance
• Second Home Allowance
• Distance Education Allowance
• Pensioner Education Supplement

Bereavement Allowances Bereavement Payments

Funeral benefits

Where a partnered person receives the couple rate of a pension, and their partner dies, the surviving partner will continue to receive the equivalent couple rate up to a maximum period of 14 weeks.

During this period, the tenant or household member’s income is assessed at the appropriate single rate of Centrelink pension or benefit to which they would otherwise be entitled.

Public housing tenancies:

Public housing tenants and their partners are usually not eligible to receive CRA as they pay ‘government rent.’ However, where a household member, the tenant, or their partner receives CRA, the amount is included in the rent subsidy assessment and assessed at 100% of the CRA amount.

Aboriginal Housing Office (AHO) tenancies:

Where AHO tenants and their household members are eligible for CRA, Homes NSW will assess the amount to which they are entitled, whether or not the person actually receives that amount.

CRA is included in the rent subsidy assessment and assessed at 100% of the CRA amount.

Social housing clients:

CRA is not included in the assessment of eligibility for social housing

Rentstart

CRA is included in the assessment of Rentstart affordability

In response to the COVID-19 crisis, the Australian Government is making additional income payments and one-off payments for persons in receipt of Centrelink benefits.

The NSW State Government is also providing financial support.

Disability Allowance

(DVA)

The Disability Compensation Payment previously known as the Disability Pension or War Disability Pension.

The Disability Compensation Payment is paid to compensate veterans for injuries or diseases caused or aggravated by war service or certain defence service on behalf of Australia.

There are four categories of disability compensation payment:

• General rate,
• Extreme disablement adjustment – for over 65 years of age
• Intermediate rate
• Special rate

If the total of the persons remaining assessable income is less than the amount of the Centrelink income to which they would otherwise be entitled Homes NSW will assess the person as though they receive the appropriate statutory benefit for their age and household composition.

Disability Support Pension

(Centrelink)

A payment to help energy costs.

Where paid as a quarterly payment, the Supplement will be assessed based on the equivalent weekly payment.

Provides financial assistance to a parent or guardian for a child in their care.

Family Tax Benefits are assessable if they are paid on a fortnightly or recurrent basis.

Family Tax Benefits are assessable when back paid to a parent following the birth of a child.

A parent may receive Family Tax Benefits for their child over the age of 18 years. In these cases, the Family Tax Benefits are considered assessable income for the parent.

Tenancy

Some household members over the age of 18 years do not receive Centrelink income, have no other income, and a parent receives Family Tax Benefit on their behalf. These household members will pay a $5 minimum rent. (No Income Parent/Family Means Test code in HOMES)

A payment for parents and carers of children who cannot go to a local government school due to:

• geographical isolation
• have a special education need
• no reasonable access to a school
• meet a continuity condition

A payment for people with disability, illness or injury who cannot use public transport without substantial assistance and who participate in approved activities.

This allowance will be closed to new applicants from 1 July 2020 as this program is transitioning to the NDIS.

Provides eligible job seekers interested in starting and running a small business with:

• business mentoring
• financial assistance
• training in small business management

A Centrelink scheme where the client continues to receive their Centrelink payment in addition to wages as an incentive to work.

Note: both the working credits and wages are considered assessable income.

Assessable if received by the client.

Where a client advises they are not receiving the child support/maintenance payments that:

Have been agreed to in a private arrangement, or

Were determined by the Child Support Agency (CSA) or Family Court,

The client must provide supporting documentation to demonstrate that payments have not been received. The documentation will vary depending on the situation, but will generally include one or more of the following:

• Bank statements.
• CSA Assessment letter showing the amount that should be received and the CSA transaction history showing the amount actually received.
• Family Court orders.
• Current income details from Centrelink with recalculated Family Tax Benefits.

When the client provides this information, the assessable income relating to the child support component will be assessed as:

• The reduced child support payment and Family Tax Benefit Entitlement, or
• Where no child support payments have been received, the relevant Family Tax Benefit entitlement.

‘Maintenance in kind’ is a non-cash support payment, made in lieu of cash payment, and most often associated with essentials such as food, school fees and other education expenses, or items such as medical insurance or expenses.

Birthday presents, gifts, pocket money, and ad hoc purchases are not considered ‘maintenance in kind’, so these items are not considered allowable to be deducted from gross income.

Compensation payment paid as a lump sum is not assessable; however any income generated from the investment of that lump sum is assessable.

Payments paid by instalments will be assessed as income. If this income is less than the Centrelink income to which the client would otherwise be entitled, the income will be assessed as though they receive the relevant Centrelink income.

These rules apply even if the client has disposed of the lump sum payment.

The gross amount paid to the client or household member i.e. the amount paid before tax and any other deductions such as Garnishee Orders.

Note: Where the client has lost their job and they are being paid a wage through the JobKeeper scheme Homes NSW will not assess $550 of the fortnightly $1500. (Applicable during 2020 only)

Homes NSW will determine the deductible and non-deductible business expenses and income for the self-employed client.

For further information refer to Legitimate business expenses.

Homes NSW will determine how a hobby or business will be treated for the purposes of rent subsidy assessment.

Generally, the difference between a hobby and a business is:

• the activities are not undertaken for commercial reasons i.e. not aimed at making a profit
• the activity is undertaken irregularly, is small in size, scale and permanency
• the activity is conducted usually in the client’s spare time
• client does not intend to or actually does not make a profit.

Superannuation

(Non-Preserved)

Superannuation benefits include ‘preserved’ and ‘non-preserved’ funds.

Preserved funds are not usually accessible and do not generally allow withdrawal from the funds until retirement age is reached. Non-preserved funds can be withdrawn at any time.

Superannuation benefits taken at retirement age are assessed in the following manner:

As income - if the superannuation generates an income stream, such as an allocated pension or annuity.

As Savings (i.e. a financial asset) - if taken in a lump sum and not invested in an income stream product.

Superannuation funds not taken at retirement or withdrawn before retirement are assessed as savings.

Superannuation

(Preserved)

People financially affected by COVID-19 may be able to access some of their superannuation early (up to $10,000 in 2019–20 and up to a further $10,000 in 2020–21).

Where a tenant or client does this, the money (including any interest accrued) is not included as assessable income for the purposes of a rental subsidy or eligibility for social housing.

Payments made by employers to reimburse staff for expenses incurred in travelling on official business and in performing specific duties at a temporary work location.

Circumstances covered by travel and sustenance allowance include:

Payment made to an employee to cover the cost of accommodation, food, drink or incidental expenses

Payment made to cover travel expenses when travelling for work.

Earnings from a business

(legal / cannot be accessed)

The first $5000 of each client’s total amount of savings or financial assets is exempt from assessment.

Interest is calculated on the balance of savings and financial assets after exempting the first $5000.

Homes NSW deems the interest rate. This rate is aligned to the lowest deeming rate assessed by Centrelink.

A lump sum investment that is used to generate income is not assessable. The income generated from the lump sum is assessable income.

A lump sum or capital amount that is used to generate income is not assessable.

The income generated from the lump sum is assessable income.

Shares

(income/dividend)

The share value itself is not assessable.

Income or dividend generated from the shares is assessable income.

A lump sum payment may preclude a client from receiving a Centrelink payment for a period of time. The client should obtain a letter from Centrelink confirming the exclusion period.

In these circumstances, income for rent assessment purposes is based on the client’s assumed Centrelink income appropriate to their age and household composition.

Compensation payment paid as a lump sum is not assessable; however any income generated from the investment of that lump sum is assessable.

Lump sum payments paid by instalments will be assessed as income. If this income is less than the Centrelink income to which the client would otherwise be entitled, the income will be assessed as though they receive the relevant Centrelink income.

These rules apply even if the client has disposed of the lump sum payment.

These amounts will be assessed in Australian dollars:

as documented in a recent assessment obtained through the Centrelink Income Confirmation Scheme (ICS), or

at the foreign exchange rate at the date of assessment.

Homes NSW will use the foreign exchange rate provided by Commonwealth Bank at the date of assessment.

Emergency relief is to help people meet their basic needs, like food, medicine or shelter.

Australian Red Cross has received NSW Government funding specifically to support people who do not have access to Commonwealth income support (including Job Seeker and SRSS).

The support is for temporary and provisional visa holders, as well as people who may not currently hold a valid visa, in extreme financial hardship.

Emergency relief payments are not income support. They are limited and may not meet all needs.

Any living component, including accommodation expenses, is assessable.

There are a wide range of scholarships, prizes and grants awarded by Governments, universities and schools. The type and purpose of each payment will determine how it is treated for rent assessment purposes.

Homes NSW Scholarships are not assessable.

The New South Wales Stolen Generations Reparations Scheme provides ex gratia payments of $75,000 to living Stolen Generations survivors who were removed from their families and committed to the care of the NSW Aborigines Protection or Welfare Boards. This payment is made in recognition of the harm these removals caused.

The Funeral Assistance Fund provides one-off payments of $7,000 to Stolen Generations survivors to assist with the cost of funerals.

The Territories Stolen Generations Redress Scheme (TSGRS) seeks to recognise the harm and trauma experienced by Stolen Generations survivors who were removed from their families or communities in the Northern Territory, the Australian Capital Territory or the Jervis Bay Territory.

The TSGRS provides financial and wellbeing support to Stolen Generations survivors who were removed from their families or communities in the:

• Northern Territory, before 1 July 1978 or
• Australian Capital Territory, before 11 May 1989 or
• Jervis Bay Territory.

The Scheme opened on 1 March 2022 and will close on 30 June 2026.

The Victorian Stolen Generations Reparations Package helps to address the trauma and suffering caused by the forced removal of Aboriginal children from their families, community, culture, identity and language. For successful applicants, one or more of the following financial and restorative reparations can be chosen:

• a lump sum payment of $100,000
• a personal apology from the Victorian Government
• supported access to healing programs such as family reunions, reconnection to Country and language programs
• an opportunity to record and share your story and experience
• access to trauma-informed counselling
• access records held by the State about your removal.

A Collection may comprise items such as art, bullion, coins, or stamps.

A collection is an assessable asset for rent subsidy assessment purposes. The gross value of the collection will be treated as a financial asset and deemed interest income will apply.

Bullion is an assessable asset..

Whether or not income is derived, the value of the asset will be treated as a financial asset and the deemed interest will apply.

Including assets owned by a client and/or partner or any member of the household:

• in full, jointly, or in part-share
• located within Australia or overseas
• privately or in a business structure
• where a dwelling or other building is under construction
• subject to covenant or caveat such as a mortgage or loan
• a life interest in an asset

We include real estate or other property assets which a client and/or partner or any member of the household:

• generates an income by renting, leasing or letting the property
• leaves vacant for any period of time
• allows someone else live in the property rent free
• uses for farming, agricultural or other primary production purposes

The property value is the market value, not the amount of any mortgage secured against it.

For client and/or partner:

Property owned (or the value, if the property can be sold) that could provide a viable alternative to social housing

Applies to property located within Australia

Not eligible for

Social Housing

Not eligible for a rent subsidy

Property that does not provide a viable alternative social housing and where no income is generated.

Applies to tenant and/or partner

Applies to property located within Australia

The property is treated as a financial asset and at market value.

Deemed income is calculated on the market value of the property (or part-share of the property) using the deemed interest rate.

A part-share in the property where income is generated.

Applies to tenant and/or partner or household member

A part-share in a property where no income is generated.

Applies to tenant and/or partner or household member

That share of the property is treated as a financial asset and at market value.

Deemed income is calculated on the part-share using the deemed interest rate.

Property located overseas.

Applies to tenant and/or partner or household member

Apples to full or part-ownership of the property

Conditions where a property might not be considered a viable alternative for social housing or for rent subsidy purposes:

Certain types of vacant land that are excluded from assessable assets for rent subsidy purposes. Subject to legal dispute such as a marital property settlement and income cannot be generated from it, or

Is a burial plot