Australia's Future Tax System

Architecture of Australia's tax and transfer system

2.11 Additional tax and transfer tables (continued)

Table 2.24: Rent assistance

Payment type Payment rates Other features

Rent Assistance (RA) is additional financial assistance to private renters paying private rent.

RA is paid at the rate of 75 cents for each dollar of private rent above specified minimum rent thresholds until the maximum rate is reached.

RA is paid as part of the maximum rate of income support for people without dependent children aged under 16.

RA is paid as part of the maximum rate of FTB Part A for families with dependent children aged under 16.

RA with Income Support

Maximum rates

Single: $107.20 pf

Single, sharer: $71.47 pf

Couple: $101.00 pf

Rent thresholds

Single: $95.40 pf

Couple: $155.20 pf

Maximum RA paid if rent is more than:

Single: $238.33 pf

Single, sharer: $190.69 pf

Couple: $289.87 pf

RA Paid with FTB Part A

Maximum rates:

One or two children: $125.86

Three or more children: $142.38

Rent thresholds:

Single: $125.44

Couple: $185.64

Maximum RA paid if rent is more than:

Single, 1,2 child: $293.25

Single, 3 or more: $315.28

Couple 1,2: $353.45

Couple 3 or more: $375.48

Taper rates

RA is not separately income tested but is subject to the income test of the payment it is included in. This is 20% (FTB Part A), 40% (pension), 60% (allowance). (RA paid with FTB Part A can also reduced by receipt of child support — at a MIT rate of 50%)

RA is not generally available for income support recipients aged under 25 (under 21 for DSP) living with a parent or guardian.

To get RA you must be receiving an income support payment or more than the base rate of FTB Part A. Unless eligible to receive the Rent Assistance component of FTB Part A for a regular care child(ren) (that is, at least 14 % and less than 35% care).

To receive RA, a level of proof of rent expenditures is required.

People in retirement villages, aged care homes and community housing can receive RA (subject to a range of conditions). Government tenants are not eligible.

Maintenance income can reduce RA paid with FTB Part A but not RA paid with income support.

Disability Support Pension and Carer Payment recipients are not subject to the reduced sharers' rate, nor are people in some forms of group accommodation such as boarding houses.

RA is non‑taxable.