Policy
Clients with No or Nil Income
SDMS ID Number
P2012/0179-035
SDMS Title
Clients with Nil or No Income – Policy – P2012/0179-035
Effective From
1 October 2013
Applies to
All Housing Tasmania clients
Custodian
Manager Housing Strategy
Summary
This policy The intent of this policy is to provide clarity on how Housing
Tasmania manages the various scenarios and parameters where clients have
declared no or nil income.
Replaces Doc. No.
n/a
Author Area
Housing Strategy – Social and Affordable Housing Policy Unit
Contact
Manager, Housing Strategy
Review Date
January 2017
Policy Purpose
Clients may present to Housing Connect claiming they have no or nil source
of income as a result of factors such as Commonwealth Government Policies
or as a result of client inaction.
When allocating properties, Housing Tasmania does not carry the financial
impact for all situations where a client has declared no or nil income.
Policy Intent
The intent of this policy is to provide clarity on how Housing Tasmania
manages the various scenarios and parameters where clients have declared no
or nil income.
Proof of income is a requirement under Housing Tasmania’s eligibility criteria
and must be confirmed prior to Housing Tasmania allocating a property.
Application
This policy is relevant to all applications for Housing Tasmania Properties.
No / Nil income
Clients may have no or nil income for a variety of reasons including:
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the requirement to serve a ‘liquid assets waiting period” before they
start to receive a Centrelink Allowance;
recipients for Newstart not seeking work and so become ineligible
for further payments for a specified period;
ineligibility of a young person for Centrelink benefits because of
parental income;
clients who have received a compensation settlement and therefore
are precluded from receiving benefits for a set period of time;
statutory income recipients who go overseas (those in receipt of a
benefit);
clients who are entitled to a benefit they do not claim;
clients who have been terminated from their employment and are not
eligible for Centrelink benefits for a specified period;
clients who are under migrant sponsorship agreements (e.g.
assurance of support);
those subjects to a two year waiting period for Centrelink benefits
(e.g. New Zealanders);
Clients in receipt of temporary or bridging visas and therefore
ineligible for Centrelink benefits; and
Self-employed individuals whose taxation returns show a zero income
or an income loss.
Reduced Income
Clients may have a reduced income if they have ‘breached’ Centrelink
requirements or they are repaying a Centrelink debt. In cases of a reduced
income the full income should be deemed as the full entitlement.
Assessing clients with
No / Nil income
Clients with no or nil income will be deemed to be receiving a Centrelink
benefit in the majority of cases.
If a client has a preclusion period with Centrelink because they have been
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terminated from their employment, or is serving a “liquid assets waiting
period”, then Housing Tasmania would deem their income to be the
Centrelink income they would otherwise be entitled to, such as Newstart.
However, in some cases it is not appropriate to deem an income, and these
clients will not be eligible for public housing. Those clients not eligible for
public housing assistance include:
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Clients who are under migrant sponsorship agreements (e.g.
assurance of support):
Those subject to a two year waiting period for Centrelink benefits
(e.g. New Zealanders);
The conditions under which these clients enter Australia are such that they
are either required to receive support from their sponsor (this includes
financial housing assistance) or be able to support themselves for the stated
period. It is not the role of Housing Tasmania to provide assistance in these
cases.
Calculating the rent of a
tenant with No / Nil
income
For those tenants who are excluded from Centrelink benefits Housing
Tasmania deems their income as if they were receiving the benefit they would
otherwise be entitled to. This only occurs when the preclusion period is 12
months or less.
The client will remain on the deemed Centrelink benefit/pension for the
precluded period. At the end of the preclusion period, the tenant will need to
complete a Household Income Statement and pay the relevant tenant
contribution according to the total household income.
For example, where a client has received a compensation settlement, they will
have a period of preclusion from receiving Centrelink benefits but Housing
Tasmania will assess their income on what they could have received from
Centrelink if they had not received the compensation settlement.
Clients who receive a large compensation payout may be in a better position
to consider alternative accommodation options such as home purchase or
private rental.
If the client’s situation does not fall into the above categories, the Area
Manager may apply discretion.
Household Members
with No / Nil income
Household members should be deemed to be receiving the Centrelink
income that they would otherwise be entitled to receive.
The exception to this includes migrants on sponsorship agreements and
migrants with two year residency requirements. If the migrant has no / nil
income it is not appropriate to deem a Centrelink income for the sponsored
migrant. Sponsored migrants are not eligible to receive a Centrelink income
for the first two years of their residency.
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Arrears
In the event that arrears accrue as the result of tenants being deemed as
having an income, these arrears will be pursued in accordance with Housing
Tasmania’s Rental Arrears Management Process.
Proof of Income
A client must provide proof of no or nil income received by all members of
their household aged 18 years and over. Proof of income documentation
must be original.
Discretion
Discretion allows organisations to be more responsive through early
intervention/prevention.
Discretion may be applied to a client’s application for housing assistance
and/or support at the time of assessment with Housing Connect.
The area manager with Housing Tasmania has the discretion to make
decisions to allocate their vacant property to a client out of order, where a
reasonable case has been presented. The decision must be adequately
documented on the relevant tenancy file.
This supports the creation of mixed communities which promotes social and
economic opportunities for all clients.
Legal Framework
This Policy adheres to the Residential Tenancy Act 1997
Exemptions
Nil
Responsibilities/
Delegations
All Housing Operations staff are responsible for ensuring the correct use of
this policy. Area managers are responsible for management of policy
application.
Disclaimer
This is a statewide policy and must not be re-interpreted so that subordinate
policies exist. Should discrete operational differences exist, these should be
set out in an operating procedure or protocol that must be approved at the
same level as this policy.
Audit and Compliance
Failure to comply with this policy without providing a good reason for doing
so, may lead to disciplinary action. Compliance with this policy is monitored
by the Manager Housing Operations, through the delegated Area Managers.
Procedures and Forms
Nil
Related Policies
Connecting to Housing Assistance Policy
Assessment for Housing Assistance and Support Policy
Policy Title and Version
Clients with Nil or No Income v2.0
Effective Date
1 October 2013
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Review Date
January 2018
Document Number
P2012/0179-035
Replaces Document Number
n/a
Custodian
Housing Tasmania, Social and Affordable Housing Policy
Approved by
Manager Housing Strategy
This Policy may be varied, withdrawn or replaced at any time. Compliance with this directive is mandatory for the
Department of Health and Human Services. Please Destroy Printed Copies. The electronic version of this
Policy is the approved and current version and is located on the Agency’s intranet. Any printed version is
uncontrolled and therefore not current.
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