ABSTUDY, Allowances and Benefits: Chapter 77 - Assessment of Rent

For the purposes of Rent Assistance, rent means amounts paid or payable on a regular basis by a student or Australian Apprentice, or his/her partner, as a condition of occupying their principal home. This includes amounts paid for:

• lodging;
• accommodation in a care situation, except for Government subsidised Residential Aged Care;
• service or maintenance fee for services provided in a retirement village;
• the use of site for, and/or rental of, a:

• caravan or other vehicle; or 
• mobile home; or 
• transportable home; or 
• tent;

• the right to moor a vessel; and
• a service or charge on certain shared equity accommodation such as some schemes provide for people with disabilities or the elderly.

77.1.1 Considered to be paid on a regular basis

Where an amount is paid at least quarterly, it is considered to be paid on a regular basis.

Where an amount for the following is paid at least annually, it is considered to be paid on a regular basis:

• site fees paid for a:

• caravan or other vehicle; or
• mobile home; or
• transportable home; or 
• tent; or

• service or maintenance fee for services provided in a retirement village.

77.1.2 Child support maintenance payments

Maintenance payments for child support purposes do not reduce a student’s or Australian Apprentice's entitlement to Rent Assistance, even if they are:

• paid specifically to help with rental accommodation costs; OR
• made directly to the landlord or agent.

The amount of rent assessed for the purposes of Rent Assistance is the gross amount of rent paid, as if there were no subsidy.

For the purposes of Rent Assistance, where a student or Australian Apprentice makes payments for board and lodging, that is, s/he is provided with meals on a regular basis in addition to the lodging, only the amount paid for lodging is considered to be rent.

77.2.1 Two-thirds rule

Where a student or Australian Apprentice pays for board and lodging and the amount paid or payable for lodging cannot be identified, two-thirds of the total amount is considered to be for rent.

77.2.2 Free board & lodging

The following table explains the provisions that apply if a student or Australian Apprentice receives free board and lodging:

If the student or Australian Apprentice...	Then the student or Australian Apprentice...
receives free lodgings, or free board and lodgings, whether in return for services or not,	is NOT regarded as paying rent. Exception: If it is accepted that amounts for lodging, or board and lodging will be paid WHEN Rent Assistance is granted.
is given the right of occupancy of a property (not being a life interest or an equity in the property) in return for the payment of rates, repairs or similar.	MAY be regarded as paying rent IF: - it can be established that they are required to pay regular amounts (usually at least quarterly), AND - it is reasonable to regard this student as paying rent.

77.2.3 Student residing at a boarding school, hostel, or residential college

For the purposes of assessing eligibility for Rent Assistance, the board fees for a student who is residing at a boarding school, hostel or residential college are regarded as being paid by the student, even if paid by a third party on behalf of the student.

See 77.3.4 for details of special rules for accommodation that is paid for by a scholarship.

Generally, Rent Assistance is payable only on the amount of rent paid by the student or Australian Apprentice, net of any subsidies or payments from tenants. The exceptions to this are:

• student or Australian Apprentice who sub-lets in community or co-operative housing;
• student or Australian Apprentice who resides in disability program accommodation;
• State & Territory rent relief schemes;
• student or Australian Apprentice scholarships;
• rent in return for work.

77.3.1 Student or Australian Apprentice who sub-lets in community or co-operative housing

A student or Australian Apprentice who sub-lets a house that is managed by a co-operative or community housing group is paid Rent Assistance based on the amount of rent paid by the student. This is usually a given percentage of their income.

77.3.2 Student or Australian Apprentice who resides in disability program accommodation

Where a student or Australian Apprentice resides in disability accommodation provided by a government or community agency, Rent Assistance is payable. This includes situations where:

• the accommodation owned by the State Housing Authority (SHA) but managed by the disability service agency; and
• rent is paid directly to the SHA.

Only the amount paid by the student for accommodation is considered to be rent. Amounts paid for maintenance and service fees are not considered to be rent.

77.3.3 State & Territory rent relief schemes

Some State and Territory Governments offer rent relief schemes which impact on the eligibility for Rent Assistance. The Government schemes offered and their treatment under Rent Assistance provisions are as follows:

State Government	Scheme Name	Details of Scheme	Rent Assistance based on …
NSW	Special Assistance Subsidy (SAS)	Subsidy paid to disabled and HIV/AIDS customers on waiting list.	gross rent payable.
South Australia	Rent Relief (closed to new applicants in May 2001)	Subsidy paid to low-income people to maintain private rental.	gross rent payable.
	Student Rent Relief	Subsidy paid to tertiary students who live more than 75km from home.	gross rent payable.
Queensland	Rental Subsidy Scheme	Assistance to people with disability or special need.	Rent Assistance is NOT payable, customers are Government renters.

77.3.4 Student or Australian Apprentice scholarships

Where a student or Australian Apprentice receives a scholarship that pays for some or all of their rental or accommodation costs, the following applies:

• if the scholarship is considered to be income under the Personal Income Test, then the Rent Assistance is based on the gross rent payable by the student and is not affected by the scholarship amount;
• if the scholarship is NOT considered to be income under the Personal Income Test, then the Rent Assistance is based only on the amount of net rent paid by the student discounted by the scholarship amount.

77.3.4.1 Commonwealth Accommodation Scholarship

Where a student receives a Commonwealth Accommodation Scholarship under the Commonwealth Learning Scholarships program, this scholarship is NOT to be taken into account when calculating Rent Assistance. Rent Assistance should be paid on the amount of rent paid by the student, without discounting it for the scholarship amount.

77.3.5 Rent in return for work

Where a student or Australian Apprentice receives rent or board and lodging as payment for services rendered, Rent Assistance is only payable where the customer would otherwise receive income for the services provided. In these circumstances, the board and lodging 2/3 rule may have to be applied to the deducted amount to determine the Rent Assistance entitlement.

For the purposes of Rent Assistance, the total combined rent payable by each member of a household cannot exceed the total rent payable for the accommodation.