This week we have sent out a letter, email or SMS to all of our social housing customers with the information below about a new policy change to how social housing rent is calculated.
For Your Information: Changes to the way your rent is calculated
We are writing to let you know about a new policy change to how social housing rent is calculated.
SGCH will implement the change at the start of August 2022, however your rent will not be impacted until our usual rent review process in September 2022.
What is the rent policy change?
Currently, most customers pay 25% of their assessable gross household income, plus 100% of any Commonwealth Rent Assistance as their rent to SGCH.
Under the policy change, a small number of customers who earn over the moderate income limit will start to pay between 25-30% of their assessable gross income plus 100% of any Commonwealth Rent Assistance as their rent to SGCH.
Will it impact me?
We estimate that less than 10% of SGCH customers will experience changes to their rent.
A table of rates in the included FAQ shows the household income limits and rent subsidy percentages.
If your rent is changing, we will contact you directly to discuss the changes and answer any questions following the September 2022 rent review process.
How do I find out more?
We understand that you may have questions about these changes and we have included a Frequently Asked Questions sheet for you.
You can also call SGCH on 1800 573 370 and ask to speak to a Rent Review Officer.
Yours sincerely
Renee Wirth
Group Executive
New Rent Policy FAQ
In June 2020, the Department of Communities and Justice (DCJ) updated the rent policy. It was mandatory for community housing providers to also adopt the changes in rent percentage as applied to assessable income. We delayed this due to COVID though we are now required to communicate the impending change to our customers.
Who is impacted by the change?
We estimate that less than 10% of SGCH customers will experience changes to their rent.
If your rent is changing following the September 2022 rent review process, we will contact you directly to discuss the changes and answer any questions.
Why are you increasing my rent?
- Not all rents will increase. Your assessable income will determine if there will be a change in the percentage you are charged.
- The change is due to changes in DCJ rent charging policy that we are required to adopt.
- Rent, including CRA, will not exceed the market rent of the property.
How is the new rent being charged?
The table below explains how your new rent will be charged and who will be impacted by the new rent policy. We anticipate this change will impact about 10% of our customers.
25 to 30% | 25- 30% of total weekly gross assessable income for: Tenant, regardless of age |
+15% | +15% of the gross assessable weekly income for all household members aged between 18 to 21 years |
+15% | +15% of the weekly Family Tax Benefit A & B payments which are not taken through the taxation system. |
100% | 100% of the household’s weekly Commonwealth Rent Assistance (CRA) |
How do I know what rent percentage I will be charged?
The table below shows how we will assess your rent from 1 August 2022.
| Weekly Gross Assessable Household Income at July 2021 (excl. CRA) Note: these limits are reviewed annually | |||
| Household Member | Moderate Income Limit – 25% | 30% Limit | Subsidy Eligibility Limit (if your household income exceeds the below amount, you will be placed on market rent) |
First Adult | $835 | $1,044 | $1,555 |
Each Additional Adult | $220 | $275 | $415 |
First Child | $165 | $206 | $315 |
Each Additional Child | $115 | $144 | $205 |
When will the new rent policy start?
The new rent policy starts from Monday 1 August 2022 for all NEW tenancies and/or when a customer requests for a rent review to be completed due to a change in their household circumstances.
For all existing customers, the rent policy will apply in the September 2022 Rent Review batch.
Will there be a change to CRA?
No. All tenants and household members will still have 100% of their CRA entitlement included in their rent charge.
Can I appeal the rent change?
Whilst you cannot appeal the way we charge rent, you can appeal if you think the rent calculation or rent subsidy cancellation decision is incorrect.
We encourage you to discuss any concerns with the rent review team first and we can check any change and ensure the calculation is accurate.