Tenancy charges and account management policy supplement

This document provides additional information to support the following policies of Homes NSW:

• Tenancy Charges Policy
• Charging Rent Policy
• Water Usage Charges Policy
• Rent Subsidy Non-Disclosure Policy
• Account Management Policy
• Tenancy Charges and Account Management - Previous Policy Rules and Rates

Charging rent

Homes NSW charges market rent for all its properties. This is the maximum rent a public housing tenant can be charged. The tenant can apply for a rent subsidy; the rent subsidy will reduce the amount of money the tenant has to pay in rent.

There are a number of household income limits and rent assessment rules that Homes NSW uses to determine if a tenant is eligible for a rent subsidy and, if so, how much rent they will pay. Homes NSW determines a tenant’s eligibility for a rent subsidy by considering their household’s gross assessable income, household size, the age of household members and household income limits (or thresholds).

1. Current income eligibility for a rent subsidy

Household income limits are a range of income thresholds that determine whether the tenant is eligible for a rent subsidy and the percentage of income the tenant pays as rent.

Homes NSW determines income limits by using different combinations of the four key household member types listed in the table below. Homes NSW updates these income limits every year.

Definitions:

Adult: A person who is over the age of 18, or the tenant and/or their partner if under 18.

Child: A person who is under the age of 18, unless that person is the tenant or the tenant’s partner.

Applying rent subsidy income limits

To determine which household income limit applies to a household, the following steps are applied:

• Step 1: Add up the assessable income for each adult in the household. Do not include any Commonwealth Rent Assistance (CRA) amounts.
• Step 2: ;Add up the number of adults in the household.
• Step 3: Add up the number of children in the household.
• Step 4: For the whole household, add up the weekly income allowance from Table 1 above.
• Step 5: Compare the amount at Step 4 with the assessable household income at Step 1. This comparison will show the applicable rent subsidy income limit.

CRA is not taken into consideration when determining the subsidy eligibility threshold.

2. Rent assessment rules

3. Assessable and non-assessable income and assets

Income and assets are assessable for household members aged 18 years and over, or the tenant and/or their partner if aged under 18 years. Refer to the Assessable and non-assessable income and assets page for more information.

4. Legitimate business expenses - Deductible and non-deductible business expenses

The deductible expenses must be essential to the primary purpose or type of the business.

For details of business expenses for which deduction from the gross income of a self-employed person may be made, please refer to the Legitimate business expenses - Deductible and non-deductible page.

Note: that some expenses may not be treated by the Australian Taxation Office in the same manner.

Proof of income and assets

When applying for a rent subsidy, a tenant must provide documents to prove all income received and all assets for all members of their household aged 18 years and over. Proof of income documents must be original.

Examples of acceptable documents to demonstrate proof of income are shown in the table below. Homes NSW may request further documentation or evidence to support the proof of income requirements.

Participation in the Income Confirmation Scheme (ICS)

If a public housing tenant or household member receives payments from Centrelink, they can agree to Centrelink providing details of their Centrelink income through the ICS. If the tenant agrees to participate in the ICS, Homes NSW may use Centrelink’s advice of their assessable income to determine eligibility for a rent subsidy.

If income changes, the ICS does not automatically provide Homes NSW with their updated income details from Centrelink. Therefore, if a member of a public housing tenancy participates in the ICS, they must inform Homes NSW within 28 days of any changes to their income. They do not need to provide further details of a Centrelink pension or allowance change, as Homes NSW will then request this electronically using ICS.

If a tenant or household member participates in the ICS and has an income in addition to their Centrelink payment, they may need to give Homes NSW proof of this income separately if Homes NSW is not able to obtain that information from Centrelink in an acceptable form.

Notwithstanding that Homes NSW obtains a client’s income information through the Centrelink ICS, Homes NSW may request additional evidence from the tenant to verify the household income.

5. Eligibility for $5 minimum rent

In some situations, Homes NSW will assess a tenant or household member’s contribution to the rent payable as $5 per week.

These situations are set out in Table 1 below.

A $5 minimum rent is not applied:

• to the Estate of a deceased tenant who was the sole occupant of the property
• where the tenant or a household member is on holiday, overseas, or away from their property for an acceptable absence.

The tenant must provide documentation to substantiate all claims for the minimum rent charge.

6. Eligibility for the Start Work Bonus

Tenants or any person in the household over the age of 18 will be eligible for the Start Work Bonus provided:

• the tenant applies directly to Homes NSW for the Start Work Bonus by completing a rent subsidy application form and providing evidence of the household income (even if the income details were provided through the Income Confirmation Scheme) within 28 days of starting paid employment for casual, part time, full time or seasonal work, or self-employment, and
• the Rent Subsidy Application form and documentation is provided within 28 days of starting paid employment - verbal notification is not acceptable, and
• the tenant receives a rent subsidy and the person applying for the Start Work Bonus did not include wages as a source of income before they started the job, i.e., they are not already in existing employment, and
• the increase in household income is not due to the tenant or household member moving from one type of employment to another, including, for example, moving from part time to full time work, and
• the tenant or household member is currently receiving a statutory income, and
• the tenant or additional occupant is not receiving a New Enterprise Scheme Allowance, and
• the tenant or household member is not receiving income from Work for the Dole that is equivalent to the Jobseeker Payment (or other statutory benefit) appropriate for their age and household composition, and
• the tenant or household member is not a low wage earner who receives an income below the Jobseeker Payment (or other statutory benefit) appropriate for their age and household composition.
• the tenant or household member is not paying a concessional rent e.g. $5 minimum rent or a temporary reduced rent
• the total grace period entitlement is not exceeded.

Homes NSW reserves the right to limit or decline a request for the Start Work Bonus to be granted where the household employment history indicates a misuse of the grace period assistance.

7. Eligibility for temporary reduced rent payable

In some situations, Homes NSW will reduce the rent payable by the tenant for a short period of time. These situations are set out in Table 1 below.

Refer to Amend Rent Payable – Procedure

Water usage charges

1. Tenancies and properties which are exempt from water usage charges

Some tenants are exempt from water usage charging due to the type of tenancy they have, or the program purpose of the property they live in. Tenancies and properties that are exempt from water usage charges are detailed in Tables 1 and 2 below.

Table 2: Properties with program purposes exempt from water usage charges

2. Percentage water charge rate

From 1 July 2024, the percentage water charge rate is 5.3% of the rent payable, capped at the maximum charge of $11.00 per week.

Under the Social Housing Management Transfer program, at the time of management transfer a community housing provider will accept the following conditions:

Shared Water Meter:

• Tenants are charged a percentage water rate (5.3% of the net weekly rent payable – excluding the vacant bedroom charge, capped at $11.00 per week).
• Once the tenant’s income changes, the community housing provider may apply their own policy for assessing the tenants new rent and water charges.

Separate Water Meter:

• Tenants pay the actual water usage based on a bill that is received from the water authority every 13 weeks.
• Once the community housing provider receives the first bill they may apply their own policy for assessing the tenant’s water charges.

For specific requirements to tenancies transferring to community housing provider management under the Social Housing Management Transfer program, please refer section 5.6.1 of the Community Housing Rent Policy (https://www.facs.nsw.gov.au/housing/community-housing-policies/rent).

3. Minimum and maximum charges

Some water charges have minimum and maximum limits. These are outlined in Table 1 below.

4. Water usage allowances

Homes NSW will provide water usage allowances as outlined in Table 1 below:

Rent Subsidy Non-Disclosure

1. Receipt of information by Homes NSW

There are many ways Homes NSW can become aware that a tenant may be receiving a rent subsidy to which they are not entitled. The most common ways include:

• the tenant provides information that is inconsistent with information supplied for previous rent subsidy applications
• Homes NSW receives information that is inconsistent with its current records relating to the tenant’s household circumstances
• an acquaintance, relative or work colleague of the tenant advises Homes NSW of changes to the tenant’s household circumstances.

2. Inquiries related to alleged subsidy non-disclosure

Homes NSW may make inquiries about matters related to an alleged failure to disclose a change in household circumstances where:

• there is a lawful reason to do so (for example, where the information is required for a purpose directly related to assessing the tenant’s eligibility for rent subsidy)
• there is a current signed authority (for example, the tenant has signed an application for rent subsidy authorising contact with third parties)
• there is a clause in the tenancy agreement giving consent to Homes NSW to make enquiries with third parties about the tenant’s income and assets
• an exemption has been granted and is documented in the Homes NSW Privacy Code of Practice (for example, protection of the public revenue).

Homes NSW may make inquiries with, for example:

• the tenant’s employer or alleged employer
• the tenant’s neighbours
• supply authorities, such as gas, electricity, water and telephone providers
• the police or other government agencies
• the appropriate local council
• any other likely sources of relevant information.

Homes NSW will also review the tenant’s file and any Rent Subsidy Applications submitted by the tenant during the period of the alleged failure to disclose information.

3. Assessment criteria and evidence for determining subsidy non-disclosure

Homes NSW will carefully consider the merits of any information before using it as the basis of a decision regarding a tenant’s alleged failure to disclose changes to their household circumstances. Homes NSW will weigh information according to its reliability, strength, impartiality and importance. Homes NSW will not give weight to evidence or factors that are not relevant or important to the case.

Homes NSW will take into account the following information when deciding whether a tenant’s alleged failure to disclose information about their household circumstances amounts to an unsubstantiated allegation, rent subsidy non-disclosure or possible rent subsidy fraud:

• whether the tenant has denied the allegations
• whether the tenant has admitted the allegations in part or in full
• whether the tenant has a reasonable explanation for failing to disclose information about changes to their household circumstances
• whether the tenant was aware of their obligation to disclose information about the change to their household circumstances. If the tenant claims they were not aware of this obligation, whether this claim is reasonable
• whether the tenant signed a rent subsidy application form during the relevant period
• any previous history of the tenant’s failure to disclose information about changes to their household circumstances
• the estimated monetary value (in terms of arrears of new weekly rent)
• length of time involved
• the number of times Homes NSW has previously interviewed the tenant in relation to current and/or previous allegations
• whether the tenant has a reasonable ability to obtain the information required to clarify the circumstances
• whether the tenant has refused or failed to supply information that is reasonably available to them to clarify the circumstances
• relevant evidence/information provided by the tenant
• any extenuating circumstances or mitigating factors.

Extenuating or mitigating circumstances may include:

• diminished capacity of the tenant to understand their obligations, for example, due to disability barriers
• any duress the tenant may have suffered to falsely declare, or not declare, changes to the household circumstances, for example, threatened or actual domestic/family violence.

Homes NSWwill take into account the following evidence when deciding whether a tenant’s alleged failure to disclose information about their household circumstances amounts to an unsubstantiated allegation, rent subsidy non-disclosure or possible rent subsidy fraud:

• any Rent Subsidy Application form(s) which contains information about a tenant’s obligation to disclose any change to their household circumstances signed by the tenant during the period of alleged failure to disclose information
• any information that Homes NSW has given to the tenant (verbal or written), which outlined the tenant’s obligation to advise Homes NSW of any change to household circumstances
• oral or written advice from any third party that the tenant has had a change in their household circumstances
• file notes and information held on Homes NSW computer system
• information about the tenant’s income that differs from previous information supplied for the same period
• any explanation provided by the tenant or other household member
• proof of residency of alleged additional occupants, e.g., driver’s license, correspondence addressed to the tenant’s or other address
• proof of income for the tenant or alleged additional occupants, e.g., Centrelink income statement discloses income besides the basic benefit/allowance, such as wages
• evidence of ownership of property or other assets
• evidence of any extenuating or mitigating circumstances.

Evidence that Homes NSW may consider in determining whether any mitigating or extenuating circumstances apply includes:

• file notes and information held on Homes NSW computer system relating to incidents of domestic violence or problems relating to cultural issues
• police reports
• support letters from advocates
• information held about the tenant’s capacity to read, write and understand English
• documentation of health or intellectual disability issues which may affect a person’s comprehension or decision-making ability.

4. Outcome of assessment

Homes NSW may take a range of actions depending on whether it has determined that the situation is one of unsubstantiated allegation, rent subsidy non-disclosure or possible rent subsidy fraud. The actions are outlined in the table below.

Account management

1. Evidence requirements when making decisions about managing accounts

Homes NSW will consider the following evidence requirements when making decisions about managing accounts.