Rent Explained

Here is some helpful information about your rent and how it is calculated.

How is my rent calculated?

Foundation Housing will calculate your rent in line with the Community Housing Rent Setting Policy which is set by the Department of Communities.

Your rent is calculated using a percentage of the household income plus 100% of your Commonwealth Rent Assistance (CRA) rent assistance entitlement.

The percentage for each household will differ from 25-30% based off which band your household falls under.

What is Commonwealth Rent Assistance?

Commonwealth Rent Assistance (CRA) is an additional allowance paid by the Australian government to people on low incomes who rent privately or in community housing. We will deem you eligible for this payment where applicable.

If you are not receiving CRA and we have deemed you eligible for this payment, you will need to contact Centrelink to apply. If you are not receiving the amount we have deemed that you are eligible for, please contact us and we will investigate the issue further.

Band and eligibility limits

Income and Asset limits are set and updated yearly by the Department of Communities under the Community Housing Income and Asset Limit Policy. These limits differ depending on the location of your property (remote/metro), how many people live in your household and if there is anyone in your household living with a disability.

If you would like to understand more about which band your household falls under, please reach out to us and we will be happy to talk with you about your individual household band eligibility.

Rent increase vs rent variation

A rent increase takes place when the method of calculating your rent changes meaning your assets/income have pushed you into a higher band.

A rent variation is when the method of calculation has not changed, meaning you have stayed in the same band, however your rent may still be higher due to higher income in the household.

Household and income changes

Foundation Housing needs to be advised of any changes to ensure we are charging the correct rent for your household. These changes include:

  • if a household member moves in or out of the property (this includes children)
  • increase in household income
  • if a household member starts or stops work, or if a household members Centrelink payment type changes or stops.

Please contact Foundation Housing to advise of any change in circumstance and we will assist you on what the next steps will be.

If you do not advise Foundation Housing of an increase to your household income, you may be committing rental fraud.

Tenants are encouraged to immediately advise of any change to household income to avoid this action.

How to pay rent

You must always pay your rent on time and in advance otherwise you risk losing your tenancy. Rent can be paid in the following ways:

  • Centrepay deductions – Your rent is paid directly to Foundation Housing from your Centrelink benefit.
  • Direct debit – You can use internet banking or set up a direct debit from your bank account to pay your rent.
  • In person at the bank.

Paying your rent is absolutely critical to keeping your tenancy. Rent needs to be paid on time and in full. Centrepay is the simplest method for doing this and is the preferred method where possible. Your Housing Coordinator can provide advice and help with setting up Centrepay deductions.

Our payment details

  • BSB: 086 006
  • Account Number: 84 376 7322
  • Account Name: Foundation Housing Ltd
  • Reference: Your PayBook ID/Tenant first name/Tenant surname.

What happens if I fall behind in paying rent?

  1. We will make contact to remind you that your rent is overdue.
  2. If the rent remains unpaid, we will again try to contact you and will send a letter warning that you are in breach of your tenancy agreement. This is serious and should not be ignored.
  3. If the rent is still not paid and we have not heard from you, we will send you a notice to end your tenancy and move out of your property, unless you repay your debt immediately. This notice will result in court action if you do not contact us to make arrangements to pay off the debt.

Contact us immediately if you are having trouble paying your rent. The sooner we know the sooner we can put plans in place to help.

Rent reviews and income changes

Foundation Housing will conduct up to 2 rent reviews per year. This is to ensure all tenants are paying the correct amount of rent according to their income.

When a rent review is completed you will be asked to provide updated income details. You can also request a rent review at any time if your income changes.