Division 4: How rent allowance is worked out

1. The fortnightly rent paid by the member for a property.
2. The approved rent ceiling for the property.

The rate of rent allowance is worked out using this formula.

rent allowance = rent - A

Where:

A is the member's contribution set out in Division 3.

1. They are eligible for rent allowance.
2. Their contribution is set by table item 2 of subsection 7.8.17.2.
3. They are sharing a home.

The fortnightly rate of rent allowance is calculated using the following formula.

fortnightly rate of rent allowance = (A ÷ B) - C

Where

A is the fortnightly rate of rent.
_{Note:   This the rate of rent payable for the property, not the member’s portion.}

B is the number of people, including the member, sharing the home.

C is the fortnightly contribution set by table item 2 of subsection 7.8.17.2.

1. If the visitor has no permanent home, the member’s rent allowance must be recalculated based on the visitor living in the home from the first day of the visitor’s stay.
   _{Note 1:  Rent allowance is based on the contribution a member is required to make under section 7.8.17 and their rent ceiling under section 7.8.10.
   Note 2: If the visitor has a permanent home at another location, the visitor is not taken to be living in the home and therefore will not affect the member’s rent allowance.}

2. The member must inform the Defence Housing Australia Contact Centre in writing that the person will be living in the home for longer than 4 weeks.

If subsection 3 applies, after considering all of the circumstances in which the person is living in the home, the CDF can decide that the person is not sharing the home for the purpose of calculating the members rent allowance under subsection 2.

1. They are eligible for rent allowance.
2. Their contribution is set by table item 2 of subsection 7.8.17.2.
3. They are boarding.

The fortnightly rate of rent allowance is calculated using the following formula.

rent allowance = A - B

Where

A is the lower of the following.

1. The fortnightly boarding fee paid by the member.
2. The rent ceiling under section 7.8.10. 

B is the member’s contribution set out in Division 3.
_{Note: If the outcome is zero or less, the rate of rent allowance payable is $0.}

1. If the visitor has no permanent home, the member’s rent allowance must be recalculated based on the visitor living in the home from the first day of the visitors stay.
   _{Note 1: Rent allowance is based on the contribution a member is required to make under section 7.8.17 and their rent ceiling under section 7.8.10.
   Note 2: If the visitor has a permanent home at another location, the visitor is not taken to be living in the home and therefore will not affect the member’s rent allowance.}

2. The member must inform the Defence Housing Australia Contact Centre in writing that the person will be living in the home for longer than 4 weeks.

1. The member meets one of the following.
   
   1. They have no resident family or recognised other persons.
   2. They have unaccompanied resident family and no accompanied resident family.
2. The member is absent from rental accommodation on deployment or temporary duty.
3. The member has arranged for a house-sitter to occupy their rent allowance accommodation.

1. The house-sitter pays no rent to the member for the rent allowance accommodation.
2. The house-sitter leaves when the member returns from the deployment or temporary duty.
3. The house-sitter does not normally share with the member.

A member may have a resident child carer living with the family.

The member must inform their unit administrator in writing when either of the following occurs.

1. A resident child carer moves into their rented home. The member is to provide a date when the arrangement is expected to end, if known.

2. A resident child carer moves out of their home.

The member's unit administrator must forward the information provided by the member under subsection 2 to the Defence Housing Australia Regional Operations Manager.

_{Note: The disclosure in this section is necessary to ensure that a member's housing benefits are not reduced. It also helps to clarify that the person living in the house is not intended by the member to become resident family.}

The resident child carer will not affect the amount of the member's rent allowance.

This section applies to a member in either of the following situations.

1. The member meets all of the following.

   1. They have accompanied resident family and no unaccompanied resident family.

   2. They have sublet part of the home that they get rent allowance for.

2. The member meets all of the following.

   1. They have no resident family or recognised other persons or they have unaccompanied resident family and no accompanied resident family.

   2. They are on deployment for more than 6 months.

   3. They have sublet the home, or part of the home, that they get rent allowance for.

The rate of rent allowance is a fortnightly rate worked out using this formula.

the rent – (contribution + the fortnightly rate of sub-lease rent)

The member must inform the Defence Housing Australia Regional Operations Manager in writing if a person will be living in their home for longer than four weeks. The CDF will then decide if the member is subletting their home. The CDF must consider all the circumstances in which the person is living in the home.

This section applies to a member who meets one of the following.

1. They have no resident family or recognised other persons.

2. They have unaccompanied resident family and no accompanied resident family.

Subject to subsection 2A, a member may include the cost of hiring items in the cost of rent up to their rent ceiling.

2A. Costs that may or may not be include in the cost of rent are set out in the following table.

1. Column A sets out costs that can be included.

2. Column B sets out costs that cannot be included, unless the member meets all of the following.

   1. They are a member who has unaccompanied resident family and no accompanied resident family.

   2. They own similar items used in their resident family’s home.

A member must not be paid an amount for any of the following costs under this section.

1. Hire costs that assist the member to buy furniture.

The cost of an item that is already in the home and available for the member's use.

The cost of an item that the member already owns and that it is reasonable for them to use in the rented home.

The rules about rent ceiling increases apply to a member this section applies to.

This section applies to a member who meets both of these conditions.

1. They hold the rank of Major General.

2. They rent a home of the same standard as a class D Service residence.

The member's rent allowance is worked out as if the member was a Brigadier.

This section applies to a member who is eligible for rent allowance and is promoted.

If the member stays in the same rank group, their eligibility for rent allowance will not change.

If the member does not stay in the same rank group, their benefit may change. The amount they must contribute toward rent costs may also increase.

The member may apply in writing to the CDF to have their benefit reviewed. The review must be based on whether the member's rent ceiling is affected by their change in rank group. The member can ask for the review either before or after they are promoted. The CDF must notify the member of their decision in writing.

If the CDF determines that the amounts of rent allowance and contribution should change, the new rates are payable from the latest of these dates.

1. The day the member is promoted.

2. A day chosen by the member.

When the member moves out of the home, all later benefits will be assessed at the higher rank.

This section applies to a member who is eligible for rent allowance and is reduced in rank.

If the member's rank group changes, their eligibility for rent allowance would normally change. This is because the contribution rates that apply to the member would be the ones for the lower rank group. However, the rent ceiling would remain at the higher rank group rate.

The contribution the member must make toward the cost of rent is reduced if they belong to a lower rank group after demotion.

The reduced contribution under subsection 3 starts on the day the member's demotion takes effect.

Despite subsection 2, the member does not get a lower rent ceiling from the day that their rank is reduced.

The member may move into another home that they get rent allowance for. In this case, the rent ceiling for the member is reduced to the amount that applies to their new rank group. The reduced rent ceiling applies from the day the member moves out of the home they were living in at the time they were demoted.

A member who has been reduced in rank must notify the Defence Housing Australia in writing. This allows the Defence Housing Australia to assess whether the reduction in rank has any effect on the member's contribution.

A member must re-apply for rent allowance if they move to another rented home at their housing benefit location or family benefit location.

A rent ceiling increase approved for a previous home cannot be kept for the new home.

The member can seek a rent ceiling increase for the new home under section 7.8.12. They must include any evidence that section requires.