DEAR News Of The Area,

THE Albanese Government has stated repeatedly it is firmly committed to delivering greater assistance to the Australian’s facing cost of living challenges.

“Indexation together with our budget measures, means maximum rates of Commonwealth rent assistance will have increased by around 45 percent since the Albanese government was elected,” the government said.

The Government has again announced increases to recipients of Centrelink benefits including rental assistance.

While the increases may be helping a minority within the group, it is certainly causing concern and confusion for most, being those who are receiving Centrelink payments and are also living in social or community housing (affordable housing) and able to apply for a rental rebate.

Under the rent rebate system, housing providers charge market rent for their dwellings.

If you cannot afford this rent (based on your assessable income), you can apply for a rental rebate.

The rent payable by the tenant is not more than 25 percent of the ‘assessable income’ and the rebate is the difference between the market value and the tenant’s contribution.

If you are eligible for rental assistance, the housing provider adjusts the level of rental rebate to take this additional income into account.

The tenant pays the rental assistance in its entirety towards the rent payable, as rental assistance is not assessable income.

The housing provider reviews rental rebates twice yearly, in line with indexation.

Bravado would lead us to believe the increases in pension and rental assistance to the group mentioned is of great support and benefit.

It is in fact the opposite.

The most vulnerable are receiving no benefit from the funding at all.

It is not money in their pocket.

It does not help pay rent, it increases the rent payable.

Minimal value comes from the increase to pension as it also causes an increase in income and an increase in rent payable.

The only good news here: the tenant cannot be charged (under current legislation) more than the market rent of a property.

Really!

Shirin MILLER,
Coffs Harbour.