Claiming Rent Assistance for site fees

Will Janet be able to claim Rent Assistance on site fees?

Senior woman looks at her finances and rent assistance eligibility

Janet is looking to purchase a unit in an over-55s complex and would like to know if she’ll receive Rent Assistance to cover site and amenities fees.

Q. Janet
I am in the process of selling my marital home and when this is complete, I am contemplating buying a park home. I am still working part-time and receive a part Age Pension from Centrelink, and as I am renting I also receive Rent Assistance. However, my question is if I purchase the park home which is in an over 55s complex, the site and amenities rent is extra. As I will own the unit, will I be eligible for a subsidy on that or not?

A. 
To be eligible for Rent Assistance, a customer must be in receipt of a qualifying payment from Centrelink and satisfy other eligibility criteria. 

For situations specific to customers in retirement villages, if a customer is assessed as a non-homeowner, the fees and charges are assessed as rent and Rent Assistance may be payable as long as the customer meets all other eligibility requirements. If the customer is assessed as a homeowner, they are not eligible for Rent Assistance. When a customer takes up residence in a retirement village, the homeowner status is determined by the entry contribution amount (if any) that they have paid. 

Currently, if the amount of the entry contribution is less than or equal to the ‘Extra Allowable Amount’, then they may be entitled to Rent Assistance. The ‘Extra Allowable Amount’ is the difference between the non-homeowner and the homeowner asset test limits at the time the arrangement is entered into. You can find the current limits here. The entry contribution amount does not include ongoing costs such as general service or maintenance fees, which are payable on a regular basis. Only those facilities covered by state retirement village legislation can be classified as retirement villages. 

Lifestyle villages are different from retirement villages and often offer a resort-quality lifestyle for people over 45. Lifestyle villages are administered under specific state-based legislation relating to caravan parks or manufactured homes. People usually own or are buying the home which they are living in, and pay site or service fees as a condition of occupancy. Rent Assistance may be payable for site or service fees. 

You can view the current Rent Assistance rates and thresholds here.

As each individual’s circumstances can vary, we strongly recommend that anyone with financial questions contact the Department of Human Services and speak to a Financial Information Service (FIS) officer. You can make an appointment by calling 13 2300.

RELATED ARTICLES





    COMMENTS

    To make a comment, please register or login
    veepee
    24th Apr 2017
    11:09am
    I would recommend that anyone going into a caravan park type village check costs carefully. Even with a rental rebate, the site fees can cost more than rates on a house, and the homes in some of those parks can cost as much as a modest house or a unit.
    Kathleen
    24th Apr 2017
    11:16am
    Also, there is a trend not to own the land and having to pay rent on that. That happens in retirement villages. People would be far worse off than being on their own home.
    Rae
    24th Apr 2017
    2:53pm
    Janet there are some over 55 retirement villages that rent the accommodation. That option may be a better solution. You can track them online.
    eggles01
    24th Apr 2017
    5:15pm
    this is a bit confusing,firstly she states she is selling her home,then she is renting and receiving rent allowance while she is selling her home, and now wants to know if she still will be eligable to receive the rent assistance when she buys into a park home,""why is she renting and receiving rental assistance while she is selling her home?""
    tia-maria
    24th Apr 2017
    6:33pm
    eggles01 point taken
    Rae
    25th Apr 2017
    8:23am
    Sounds like a divorce. Selling the marital home but renting while either a divorce sale or a deceased estate is finalised.

    I still think she should take her time and consider options. The once I jumped in too fast I lost a heap of money.
    Property is priced very high and prices are not justified on current wages.
    johnnydownunder
    19th Apr 2018
    8:11pm
    narrabeen village holiday camp site, around $600,000 for a two bedder and site rent of roughly $200 a week, and of course you never own the land,wow.
    Nan Norma
    20th Apr 2018
    9:06pm
    There are villages where you can buy as cheap as $200.000 and get rent allowance. Check with each village.


    Join YOURLifeChoices, it’s free

    • Receive our daily enewsletter
    • Enter competitions
    • Comment on articles