A reader wants to know how the income and assets thresholds apply to someone living permanently in public housing.
Q: Brendon
Does Centrelink treat a person living permanently in housing commission as a homeowner or non-homeowner when applying the income and assets thresholds? So how much can a ‘houso’ inherit before their full Age Pension or disability pension decreases, assuming their only income is a pension.
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A: Brendon said he had searched online for an answer to his queries and we struggled too, so YourLifeChoices reached out to Services Australia for an answer for this one.
In reply, Services Australia general manager Hank Jongen said there were certain rules for social housing.
“People who lease from a state or territory housing authority are assessed as non-homeowners for income support payments, including the Age Pension or Disability Support Pension,” Mr Jongen said.
“The pension has an income test and an assets test. When looking at your pension payment, we assess your rate under both tests. Whichever test pays the lowest rate of pension is the one used.”
If you are a homeowner, your principal home is not considered an asset under the assets test.
Mr Jongen also said people living in most social housing options are not eligible for certain Centrelink assistance.
“You can’t get Rent Assistance if you’re leasing from a state or territory housing authority,” he said.
There’s a full list of state and territory government housing authorities here.
As for the second part of Brendon’s question about inheritance, Mr Jongen said any extra income or assets needed to be reported if you are on any Centrelink payments.
“If you’re a beneficiary of a will, you may get new assets that could affect your rate of payment,” he said.
“If you’re getting a payment from us, you need to tell us within 14 days of the assets of the estate being received or able to be received by you.”
For more information about the income and assets test limits visit the Services Australia website, including the Age Pension and DSP.
If you have any questions about Centrelink services and payments, please email [email protected]
Has an inheritance changed your payments? Why not share your story in the comments section below?
Also read: Centrelink Q&A: Should we put our land on one title?
Don’t you worry, the Public Housing Authority will squeeze every last cent they can out of you. For instance and especially if your Pension is your only income. They not only take 25% of your pension as rent, they also take 25% of your Pension supplements. The supplements that are put there to help Pensioners with Utility and Medicine etc. Up until about 10-12 years ago these supplements were excluded from rent, but then some bright spark decided yes we should pay rent on the supplements but you try and get any maintenance done on your home and 9 times out of 10, you the Tenants will be footing the bill and most of the maintenance Private Landlords have to pay for but if you’re in Public Housing they will do their best to give you the bill. I got an $800 bill for them changing my locks, even though I didn’t ask for them to be changed and I was in hospital when my Property Manager rang and said they were changing my locks. I was pretty sick so I didn’t question it until I got the bill and then I asked why they’d changed my locks as there was only one set of keys and I had them. They said and it’s true that they did for my safety because there was a lot of upheaval in my complex. I could go on but it gets you no where and to be honest I do have a nice Villa and couldn’t possibly be able to pay Private Rent and for that I’m grateful and my main complaint is them taking rent out of our Pension Supplements.