Understanding Rent Assistance: What pensioners need to know

Renting in Australia can be an expensive feat, with the cost of a room, unit or house continuing to rise steadily across most states and territories. However, if you are currently renting and receive the Age Pension then you may also be entitled to some financial help from Centrelink in the form of Rent Assistance.

Your eligibility for the payment will be assessed by the Department of Human Services and, depending upon your personal circumstances, you could receive as much $182 per fortnight. So, if you’re unsure whether you may be entitled to Rent Assistance or don’t know how to proceed, Starts at 60 has pulled together everything you need to know.

Am I eligible for Rent Assistance?

Rent Assistance is intended to support Australians who are already in receipt of various payments from Centrelink and help them to afford the cost of living in a rental property. This includes older Australians who qualify for fortnightly pension payments, as well as those on the Newstart Allowance.

However in order to get the payment you must also be paying either private rent, board and lodging fees, fees in a retirement village or site or mooring fees if your primary residence is a caravan, relocatable home or a boat. You can also claim Rent Assistance if you pay fees to non-Australian Government funded aged care facilities, such as a hostel or nursing home.

How do I claim Rent Assistance?

If you’re unsure how to claim the payment, then we have good news for you – you don’t have to! According to the Department of Human Services’ website, as soon as you submit a claim for the Age Pension, or another payment from Centrelink, the department will automatically consider your eligibility for Rent Assistance. Your circumstances will then be assessed and you will receive a letter advising the results of your claim, as well as whether you will receive Rent Assistance.

You may also be asked to complete a Rent Certificate by Centrelink to prove that you are making regular rent payments. If you do need to complete the form though, this will be sent to you directly for you to complete and submit.

How much Rent Assistance can I get?

The rate of Rent Allowance you receive is dependent upon your individual circumstances, as well as the amount you are paying to live in your home. For example if you are single your fortnightly rent must be at least $123.20 to qualify. For single Australians to receive the maximum Rent Assistance payment of $138 every two weeks, their rent must be $305.33 or more per fortnight.

The figures differ for single sharers and couples, including couples who may be separated temporarily perhaps due to illness. Couples must pay combined rent of at least $372.73 per fortnight to receive the maximum fortnightly Rent Assistance payment of $130. The figures also change if you have dependent children living with you.

And of course not everyone fits Centrelink’s cookie cutter mould, for example those who pay board and lodging are advised to call Centrelink to discuss their eligibility. If you do pay board and lodging, your claim will be assessed purely on the amount you pay for lodging alone. And if you’re unsure, this will be worked out as two thirds of the total amount you pay.

It is also worth noting that the amount of Rent Assistance you receive may change, for example if your rent payments go up or down, you move house or your family circumstances change. The amount of Rent Assistance is also updated twice a year by the government in line with the Consumer Price Index.

What happens to my Rent Assistance if I move?

If you move house it is important to update Centrelink and let them know of your change of details. This can be done easily by heading to myGov and logging into your account. Once you are logged in, go to ‘My details’ and select either ‘Update address details’, ‘Update accommodation details’ or ‘Update contact details’.

However if you would prefer not to update your details online, or are not comfortable doing so, you can also visit your nearest Centrelink service centre, call the payment line or use the Express Plus Centrelink mobile app. Your eligibility will be reassessed and you will be notified of any changes to your Rent Assistance eligibility.