Chapter 1: Introduction and overview
November 2017
Revision history
Version / Amended section / Effective / Details1.0 / November 2017 / Incorporation of version control table
Accessible format
More information
To find out about housing options visit the Housing website< or contact your local Housing Office <
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Authorised and published by the Victorian Government, 1 Treasury Place, Melbourne.
© State of Victoria, Department of Health and Human Services, November 2017.
ISBN: 978-1-76069-124-0(pdf/online/MS word)
Available on the Rental rebate manual page on Services Providers website <
Contents
Revision history
Overview
Introduction
Rental Rebates
Relationship to Centrelink policies
Key elements of the Department’s rent policy
Revision History
New Revision History Format
Overview
Introduction
Public and social housing is targeted to low income Victorians most in need. The Housing Act 1983 includes in its objectives:
(a)(a) “to ensure that every person in Victoria has adequate and appropriate housing at a price within his or her means….”
Tenants may be eligible for a Victorian Government subsidy known as a rental rebate, which can reduce their weekly out of pocket cost for public housing to 25 per cent of household income.
Rental Rebates
In assessing eligibility for a rental rebate, the market rent for a property is determined and compared to the household income.
Where the market rent is more than 25 per cent of the household income, the amount a tenant pays is based on the household income.
The gap between the market rent and the actual amount paid by a tenant is termed a rental rebate. The value of rental rebates is a measurable cost to the Victorian Government.
In determining the rebate amount, some types of household income such as Child Maintenance and Family Tax Benefit payments are treated at rates of less than 25 per cent, while other income types such as Pharmaceutical Benefit, which is paid for a specific purpose, are not assessed.
Relationship to Centrelink policies
The Department’s rent policy changes from time to time as Centrelink payments and methods change, but the broad intent of assisting with housing affordability, while not substituting housing assistance for Commonwealth income support, remains the same.
Key elements of the Department’s rent policy
There are four key policy components used to determine the rent payable for a household. These four components comprise:
•market rent policy, which is used to determine the value of rent to be charged on a property, based on what it would attract in the private market
•assessable household income policy, which determines how various household income types are treated in the calculation of rebated rent
•fixed rent policy, which is used to determine the period for which an amount payable is set before it is reassessed
•rebate policy, which is used to ensure that households pay no more than 25 per cent of their assessable income
•These policies and related initiatives such as the Income Confirmation Service are outlined in detail in the following sections
The system changes outlined in the following sections are not retrospective with the exception of:
•rebated rent effective date - when an increase in household income occurs between an AFRR and FRED, the date that the increase applies is the following FRED;
•credit backdate periods - removal of credit backdate limitation; and
•income validation - removal of automated validation of income.
Reference to the archived rent policies should be made when determining the rent payable for periods prior to 2012.
Revision History
The following table shows the development of this manual.
Version / Amended/ Section Number / Pages from / Effective date / Details1.1 / 1.1.2
1.2.2
1.2.1
2.1.1
2.1.2
2.1.3
2.2.1
2.1.4
2.1.8
2.2.7
2.1.11
2.1.15
2.2.13
2.1.17
2.2.9
2.2.10
3.1.3
4.1.1
4.1.10
4.1.12
4.2.7
4.1.13
4.2.8
4.1.14
4.2.9
5.1.1
5.1.2
5.1.3
5.2.2
5.3 / 1-18
1-21
1-20
1-25
1-28
1-29
1-43
1-30
1-35
1-46
1-38
1-41
1-51
1-42
1-48
1-49
1-59
1-72
1-79
1-80
1-89
1-80
1-90
1-81
1-90
1-94
1-94
1-95
1-9
1-103 / Mar 99 / Information received from an anonymous or other source. Policy and Procedures updated.
Updated information regarding time frames when incomplete applications are received.
Removed reference to ‘Youth Homeless Allowance’.
Clarification of policy for a tenant o1.r resident in receipt of Veterans Affairs War Disability Pensions in excess of the maximum Centrelink entitlement.
Clarification of policy for imputing income when wages are earned. Policy and Procedures updated.
Clarification of the ‘deemed’ interest rate versus actual interest rate earned.
Income that is assessed when a child has a trust fund. Policy and Procedures updated.
Wage earners - Retrenchment and Voluntarily left employment.
Clarification of TAC policy when a lump sum payment is received for loss of wages.
Residents receiving reduced rate Youth Allowance Payments due to parental income testing.
Clarification on withdrawn superannuation funds and funds that have been rolled over.
Clarification on Tenants/Residents who have to wait for benefits after leaving voluntarily or being retrenched from their employment.
Assessing rebate applications for vacated accounts.
Clarification of policy when a tenant dies.
Clarification of policy for overseas students with a temporary visa.
Tenants in Geriatric Nursing Homes policy and procedure clarification.
Tenants in Rehabilitation or Respite Care policy and procedure clarification.
Tenants in Jail policy and procedure clarification.
Updated information relating to Automatic reviews.
Changes in Market Rent.
Additional section on age Reviews.
Updated income codes for HiiP.
1.2 / 2.1.1
2.1.2 / 1-24
1-27 / Sep 1999 / Introduction of Carer’s Payment and Carer’s Allowance.
1.3 / 2.1.2
2.1.5 / 1-27
1-33
1-32 / Oct 1999 / Extension of Family Allowance to dependents aged 18 - 24.
Clarification of policy where a tenant lends money to a family member.
1.4 / 1-24 to 1-52 / Dec 1999 / Reprinting of ‘Assessable and Non-assessable incomes’ chapter.
Clarification of lump sum payment calculations.
1.5 / 2.1.1
2.1.2
2.1.8
2.2.6
2.1.2
2.1.9
2.2.8
2.1.13
2.2.12
2.1.4
2.2.2
Intro / 1-24
1-27
1-35
1-46
1-28
1-36
1-47
1-40
1-51
1-30
1-44
1-6 / Feb 2000 / Clarification of assessment of children’s trust funds.
Clarification of assessment of Veterans War Disability Pension.
Changes to gifting policy. Lowering of the maximum amount that clients may gift from $10,000 to $5,000 per year.
Clarification of policy where lump sum compensation payment is received - loss of wages component.
Updated deemed interest rate for savings and investments.
Clarification that where OOH policy does not address a specific circumstance, the Centrelink assessment should apply in the interim.
1.6 / 2.1.2
2.1.3
2.1.9
2.2.8 / 1-27
1-30
1-36
1-47 / Mar 2000 / Addition of Adequate Means of Support Pension paid by Department Veteran’s Affairs to non-assessable income list
Updated deemed interest rate for savings and investments.
Clarification of gifting policy limit. Change from $10,000 to $5,000 does not apply
1.7 / 2.1.1
4.1.9 / 1-6
1-8
1-24
1-77
1-78 / Apr 2000 / Scope to include occupiers of movable units
Addition of a definition for a movable unit
Updated Assessable incomes to include Asylum Seekers Allowance
Assessment of household members who hold a Temporary Protection Visa Class 785
2.0 / Throughout
1.1.1
1.2.1
2.1.1
2.1.2
2.1.4
2.1.5
2.1.13
2.2.2
3.1.3 / 1-6
1-6
1-7
1-11
1-12
2-3
2-5
2-7
2-10
2-16
2-22
3-6 / May 2000 / Re-issue of complete manual. Includes new page numbering system
Addition of documentation required from Income Stream Products
Update of documentation required for Payments In Kind
Changes in procedure for incomplete applications to reflect the new HIIP generated letter for incomplete applications.
Assessable incomes updated to include: Fringe Benefits, Incomes Generated for Income Stream Products, Salary Sacrificed Income
Non-Assessable Incomes updated to include lump sums invested into income stream products
Change of income limits for deemed interest rates from 1/7/00
Addition of policy regarding investments generating a regular income from Income Stream Products
Assessment for Payments In Kind
Addition of procedures where a regular income is generated from Income Stream Products.
Changes in procedure as to how a rebate is assessed for a vacated account.
2.1 / 1.1.1
1.2.1
2.1.1
2.1.2
2.1.3
2.1.3
2.1.4
2.1.7
2.1.8
3.1.1
3.1.1
3.1.2
3.1.4
3.2.3
4.1.9 / 1-5
1-11
2-3
2-5
2-6
2-7
2-7
2-11
2-23
2-13
3-2
3-4
3-5
3-8
3-12
4-6
4-7 / Nov 2000 / Addition of documentation required for household members who have shares.
Correction as to when a rebate is cancelled after additional information requested has not been received.
Assessable incomes updated to include Family Tax Benefit Part A and B
Non-assessable incomes updated to include GST Component on Centrelink Payments.
Addition of policy regarding household members whose income has been reduced by Centrelink penalties.
Addition of policy regarding household members whose Centrelink income has been reduced as a result of an over payment.
Addition of policy regarding household members who have shares in a company.
Addition of policy regarding households who receive Centrelink family related payments.
Addition of procedures relating to calculations for household members who hold shares in a company.
Addition of assessments from 1/10/200 for maintenance payments
Change in policy regarding start dates where a household has a change in income.
Changes in policy regarding calculations of Centrelink family related payments.
Change in policy regarding start dates where a household has a change in income for backdates.
Addition of policy regarding ineligible applicants who have been incorrectly signed up as tenants.
Addition of procedures relating to how a rebate is assessed when a household receives Centrelink family related payments as well as maintenance.
Addition of a note regarding how a rebate is assessed where a resident is on a temporary or bridging visa.
Addition of policy regarding how a resident on a temporary or bridging visa was assessed prior to 5 July 1998.
Addition of assessment of Temporary Protection Visa Holders subclass 786.
2.2 / 2.1.15
2.1.16
2.1.71
4.1.8 / 2-19
2-24
4-5
4-6
4-15
4-16 / Feb 2000 / Clarification of policy concerning household members who have a lump sum compensation payment made to them and:
Are subject to a Centrelink Preclusion Period
Are unable to verify the Loss of Wages component
Have purchased an income stream product with the payment
Have used the lump sum payment for other purposes
A payment of Legal Costs is included in the amount.
Effective date 7 January 2001.
Reprint of entire “Assessable and Non-Assessable Incomes” chapter.
Change in policy and procedures regarding household members who are sponsored migrants under assurance of support or New Zealand Residents Subject to the Centrelink Two-year Waiting Period.
The OOH no longer imputes a relevant Centrelink income – effective date 19 November 2000.
Reprint of entire “Special Circumstances” chapter.
2.3 / 2.1.4
3.1.1
4.2.4 / 2-4
2-7
3-3
4-15 / Jun 2001 / Addition of assets deemed as non-assessable under 2.1.7 of the allocations manual to be assessed as non-assessable for rental rebate calculation purposes as well.
Correction of typographical error.Paragraph title should read “Calculations From 19/4/98 to 1/10/00” not “Calculations From 19/4/98 to 1/10/98”
Changes in HIIP procedures for sponsored migrants or New Zealand Residents subject to the two-year Centrelink waiting period.
2.4 / 2.1.2
2.1.4
2.1.7
2.1.20
2.2.14
31.3
3.2.6
4.2.4 / 2-4
2-8
2-11
2-24
2-34
3-8
3-9
3-16
3-17
4-10 / Oct 2000 / Reprint of entire manual
Inclusion of TAC Impairment Annuity Benefits as a Non-Assessable Income
Change of income limits for deemed interest rates from 1 July 2001.
Inclusion of policy regarding Centrelink’s Reconciliation of Family Related Payments for the Financial year 2000/2001.
Inclusion of How Overseas Pensions are treated when calculating a rental rebate.
Change of section number for Overseas Pension Procedure from 2.2.3 to 2.2.14.
Further clarification of procedures for assessing a UK Pension.
Inclusion of note explaining when a credit balance should be reimbursed to a tenant.
Inclusion of HIIP procedures for sponsored spouses.
2.5 / 4.1.17
4.2.3 / 4-12
4-15 / Dec 2001 / Further clarification of documentation required where a household member, who is a taxi driver, requests that they be assessed as self-employed.
2.6 / 2.1.1
2.1.2 / 2-3
2-5 / Jan 2002 / Further clarification and addition of assessable and non-assessable allowances.
Special purpose payments intended to meet a specific cost such as travel, meals, accommodation and laundry allowances are non-assessable.Other allowances paid such as height dirt risk allowances are assessable, as they are not considered payments for costs incurred.
2.7 / 1.1.1
1.2.1
1.2.2
1.2.3
2.1.2
2.1.4
2.1.12
2.1.12
2.1.12
2.1.15 and 2.1.16
2.2.2
3.1
3.1.1
3.2.3
3.3.1
3.3.2
4.1.3
4.1.4
4.1.5
4.1.11
4.1.12 to 4.1.15 4.2.7 to 4.2.9
4.1.14
4.1.12
4.2.6
4.1.13
4.1.16
4.2.6
4.2.10
4.2.3
4.2.6
5.3.2 / 1-3
1-11
1-12
1-12
2-4 to 2-6
2-8to 2-10
2-19
2-19
2-20
2-21
2-22
2-26
3-2
3-3
3-12
3-20
3-21
3-22
4-3
4-4
4-4
4-5
4-9
4-10 to 4-12
4-20
4-11
4-10
4-10
4-20
4-11
4-12
4-19
4-22
4-17
4-19
5-8
5-9
5-11 / Nov 2003
Various (this section only)
17 Aug 2003 (applies to this section only)
17 Aug 2003 (applies to this section only)
1 Dec 2002 (applies to this section only)
18 May 2003 (applies to this section only) / Addition of new subsection detailing the documentation required where a tenant wishes to Add a New Household Member or Dependant
Incomplete applications subsection. Rewording to read ‘any advice’ in place of ‘written advice’.
CRSA letters should be used where staff are given any advice (written or verbal) of a change of household circumstances by a household member.
New Section - Where A Tenant Provides Advice Of A Change In Household Circumstances (Written Or Verbal).
New Section – Where a Tenant Wishes To Add An Additional Household Member (Including Dependants) Or Advises Of Changes To Household Income.
As a result the two new sections -
1.2.2 Information received from an anonymous or other source has become section 1.2.4
1.2.3 Fraud has become section 1.2.5
Non-assessable incomes updated to include:
Community Development Employment Project (CDEP) Payment Supplement
Community Empowerment Project Payments paid by the City of Yarra
Language, Literacy and Numeracy Supplement
Neighbourhood Renewal Community Survey Payments (made to interviewees and interviewers) Note: This only applies to tenants or residents residing in designated
Neighbourhood Renewal Areas.
Work for the Dole Supplement
Addition of income limits for deemed interest rates
from 1/7/2003
from 1/7/2002
from 20/3/2002
from 1/7/1999
New Subsection – Tenant or Resident Residing in a Neighbourhood Renewal Area Commencing Employment
Waiting Period – Retrenchment correction of rent change date to reflect current policy.
Waiting Period – Voluntarily Left Employment correction of rent change date to reflect current policy.
New Subsection – Tenant or Resident is subject to Centrelink Liquid Assets Waiting Period
Further clarification where a household member is unable to verify the loss of wages component for a lump sum compensation payment (including WorkCover).
Changes to calculations in example to reflect current interest rate.
Inclusion of new paragraphs detailing that the OOH will provide detailed rental rebate calculations on request.
New Section - Calculations from 17/8/2003 - Inclusion of new subsection detailing OOH rebate calculation change, that is, all tenancies are charged 25per cent.
New Section - Rounding Down from 17 August 2003 - Inclusion of new OOH Policy detailing rounding calculation changes.
New appendix showing a sample Calculating Detail Letter.
Addition of appendix detailing a pilot program whereby the OOH will provide 16 weeks grace from rent increases for Office of Housing (OOH) tenants and residents in Neighbourhood Renewal Areas (NRAs) who obtain employment.
Addition of additional information required if the couple of a joint tenancy separate.
New subsection – Where A Resident Moves Out OfA Property
New subsection – Where A Tenant Moves Out Of A Property
New section (and subsections) - Where a Household Member Moves Out of the Property -clarifying policy and procedures where a tenant, resident, or dependant moves out.
As a result the new section, all other sections have increased by 1. (e.g. 4.1.5 has become 4.1.)
Changes to policy regarding how rebate calculations are made for Overseas Students.
Addition of wording to include residents who are temporarily absent.
Detail regarding who approves a temporary absence and when it is approved. That is, a HSM must approve a temporary absence request. This policy only applies where the household member is required to pay towards their accommodation costs.
Further clarification of policy and documentation required where a joint tenant is temporarily absent.
Further clarification of the documentation required where a tenant or resident is temporarily absent in a Geriatric Nursing Home.
Removal of subletting chapter reference and addition of note regarding withholding consent for a sublet.
Clarification of documentation required for self-employed household members.
Addition of HIIP procedures where a tenant or resident is absent.
Record changes of HIIP Function Keys used with regard to the Contact Review Process.
2.8 / 2.1.4
2.2.2 / 2-8
2-29 / 20 Mar 2004 / Change of deemed interest rates for investments and savings effective from 20/3/04.
3.0 / Definitions
2.1.1
2.1.1
2.1.1
2.1.2
2.1.2
2.1.2
2.1.2
2.1.2
2.1.4
2.1.7
2.2.3
2.1.7
2.1.12
3.3.2
4.1.12
4.2.11 / All
Xix
2-2
2-2
2-3
2-5
2-5
2-5
2-6
2-7
2-10
2-15
2-36
2-16
2-24
3-26
3-27
4-11
4-25 / Jul 2005
6 Sep 2004
24 Apr 2005
23 Oct 2005
Jul 2005
24 Jun 2004
Jul 2005
Jul 2005
Jul 2005
10 Jul 2005
23 Oct 2005
Jul 2005
Jul 2005
Jul 2005
20 Dec 2004
1 Sep 2004 / Re-issue of complete manual to comply with DHS publishing guidelines. Font type converted from Helvetica/Arial to Verdana.
Definition of ‘resident’ clarified to include requirement that residents must be included in the rental rebate application and their income and assets assessed in the rental rebate calculation. Clarify RGS in HASP definition
Assessable incomes updated to include Centrelink Working Credits Scheme.
Assessable incomes updated to include Defence Force Income Supplement (DFIS).
Assessable incomes updated to include Family Tax Benefit Lump Sum Supplements.
Non-assessable incomes updated to include Department of Human Services (DHS) Caregiver payments.
Non-assessable incomes updated to include Family Tax Benefit Lump Sum Amount of $600 paid before 30 June 2004.
Non-assessable incomes updated to include Family Tax Benefit Part A Lump Sum Supplement paid in respect of the 2003/04 financial year.
Non-assessable incomes updated to include Maternity Payment.
Non-assessable incomes updated to include Prisoner of War (Japan and Korea) $25,000 lump sum compensation payment.
Change of deemed interest rates for investments and savings effective from 10/7/05.
Addition of policy regarding assessment of Family Tax Benefit Lump Sum Supplements.
Addition of policy regarding reconciliation of Family Tax Benefit Part A or B from 2001/2002 onwards. Relates to families that were underpaid the previous financial year.
Clarification that waiting period applies to household members retrenched or made redundant. Rebate assessment same for both cases.
Clarification regarding the 16-week grace period for newly arrived migrants and addition of information that trial of the 16-week grace period will continue until further notice.
Addition of policy regarding the maximum permissible period for a sole tenant or entire household to be temporarily absent from their home.
Addition of updated policy where proof of visitor status is not provided.
3.1 / Definitions
2.1.1
2.1.2
2.2.4
3.1.1
2.1.2
2.1.2
2.1.4
2.1.8
3.3.2
4.1.12
4.1.12
4.2.6
4.1.12
4.1.12
4.2.6
4.1.16 / All
Xxi
2-2
2-4
2-35
3-3
2-5
2-7
2-10
2-19
3-23
3-25
4-9
4-10
4-19
4-10
4-11
4-20
4-13 / 1 Jun 2006