Housing and Homelessness Services
How we work out your rent
How does the Department of Housing and Public Works
calculate rent?
The department calculates rent based on household income.
Tenants will pay 25% of their household’s assessable income as rent or the market rent for the property,
whichever is the lowest.
Everyone living in the property has their income assessed when calculating the rent.
You can use this guide to estimate your own rent. Staff in your nearest Housing Service Centre can tell
you how much your actual rent is.
Steps to calculate your rent
Step 1 - identify all assessable income
a) Earned income (wages, casual earning, interest, etc.) is assessed on the after tax amount.
Using the table below, calculate tax and deduct from gross income for the after tax amount.
Earned income (e.g. wages, casual earning) is assessed on the after tax amount. The tax allowance
is in line with the taxation rates of the Australian Tax Office. Contact your nearest Housing Service
Centre for more information.
Income
Taxation rate
$0–18,200
0%
$18,201 –$37,000
19%
$37,001–$87,000
32.5%
$87,001–$180,000
37%
$180,001+
45%
b) Add any Centrelink income your household receives including any Family Tax Benefit
Step 2 - add the after-tax earned income amount (a) and the Centrelink amount (b) and calculate 25%
of this total. This amount is approximately your rent, if the amount is less than the market rent for the
property. If this amount is more than the market rent, you will only pay the market rent.
How we work out your rent
Is there a maximum amount of rent I can expect to pay?
Market rent is the maximum rent you can pay and is based on the rent charged for a similar
property in the private rental market.
What is assessable income?

Pensions, benefits and some allowances paid by Centrelink and the Department of Veterans’ Affairs
including Family Tax Benefits.

Wages, salaries and some work allowances including overtime, bonuses, shift allowances and penalty
rates.

Other income such as regular superannuation, compensation, interest from savings, maintenance and
lump sum payments.
Which types of income are not assessed?
Incomes are deemed non-assessable if they are:

A reimbursement or partial payment to offset costs

A one off payment

A payment that is considered discretionary income, but is an ‘earn and learn’ incentive

A payment that is considered discretionary income, but supports a broader government objective
Some of the types of income which are not assessed are:

Carers Allowance, Mobility Allowance

Pension Supplement, Pharmaceutical Allowance, Telephone Allowance, Utilities Allowance and
GST



Bereavement payments
Payments made for natural disasters
Income of household members under the age of 22 who are working part-time while studying fulltime. The working income of these dependent students will not be included except where they are
a tenant or their spouse.

Some specific lump sum payments received as part of another payment, for example Newborn
Supplement paid as part of the Family Tax Benefit Lump Sum payment

Some training and education ‘earn and learn’ payments and supplements
What if I have no income?
Rent is assessed using all household incomes. Clients who have no income, a very low income,
or cannot provide evidence of their income, will be imputed (assigned) an income based on
their Equivalent Centrelink Payment.
The Equivalent Centrelink Payment is the payment that most closely aligns with your
circumstances, even if you don’t qualify for the payment. The Equivalent Centrelink Payment
you would be assessed on depends upon your age, marital status, if you live at or away from
home or have any children.
Some situations where an income will be imputed are:
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How we work out your rent
•
•
•
You are receiving a reduced payment from Centrelink because of a breach of your
obligations to receive a payment.
You are a newly arrived resident and cannot receive a payment until you have served a
waiting period or someone has agreed to provide financial support as part of your visa
requirements.
You are working part-time or receiving a low income and you have chosen not to
receive an income from Centrelink.
What if my household’s income decreases or increases?
If you have a change to your household income or household members we will complete a full
household rent review asking you to supply all your household income. The Housing Act 2003
requires that you tell us of any changes to your income or household members within 28 days of
the change occurring, for example, if a person has moved in or a visitor is staying longer than
four weeks. Your rent will be reviewed and we will write to you about your new rent amount.
Please note: If you don’t tell us about these changes within 28 days, your rent may be
backdated and you may also incur a penalty under the Housing Act 2003.
More information
Please contact your nearest Housing Service Centre. Also refer to the fact sheets:

Your rent

How to pay your rent

How to read a rental statement
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