What would you tell Centrelink?

[steveadl]

Many low to average income families are on rent assistance. It is like family tax benefits. It isn't like its a program for unemployable/drongo's or anything. It is a relatively small payment compared to the total rent. Steve, you sound like only imcompetant lowlifes are able to get it, and that they should pay it to someone responsible like the landlord instead.....

I realise many people receive it including those not on other Centrelink payments. But my point still stands - why does it need to go to the tenant as opposed to the landlord? I'm still to hear a reasonable (IMO) explanation to that effect.

I also think in certain cicrumstances that the right to have it directed to them should be taken away from them once certain criteria are breached. If you're issued with form 12's every month and have been brought before the tribunal 4 times - you obviously are icompetent to handle your rent.

There is no criteria like this and never will be as God help the political party that would suggest it.

 

[s_t]

Because it isn't a 'landlord payment'. Nor is it a 'government helping landlords prevent default situations' payment. It is a payment to people to help with costs.

Don't get me wrong, I'm a landlord and don't get rent assistance personally, but do we really want government taking responsibility for everything? Isn't part of our mantra to get people to assist themselves? Do we want the governemnt to lower everything to the lowest common denomination (in this case the defaulters/problem tenants)? Or only when it comes to government handouts that will assist us.....?

 

[steveadl]

Because it isn't a 'landlord payment'. Nor is it a 'government helping landlords prevent default situations' payment. It is a payment to people to help with costs.

Don't get me wrong, I'm a landlord and don't get rent assistance personally, but do we really want government taking responsibility for everything? Isn't part of our mantra to get people to assist themselves? Do we want the governemnt to lower everything to the lowest common denomination (in this case the defaulters/problem tenants)? Or only when it comes to government handouts that will assist us.....?

That's where we disagree. I don't think it's to help with 'costs'. It is to help with rent. Hence rental assistance. It's not intended to be used for anything else, otherwise it would be called a 'General Costs Assistance' or something like that. Although people are obviously free to do what ever they want with it once they get it and there lies the issue.

eg. someone gets $100pw rent asistance when their rent is $200pw.

But if they fall behind, rather than the LL receiving at least the Rental Assistance share of the rent at the end of the month ie. $430 - they receive nothing. My point is, this money was intended for rent but was spent elsewhere. If they need help in other areas as well then that's fine, I have no problem with that - give them extra benefits for the relevant needs/rights. But at the risk of getting repetitive; rental assistance - enough said.

 

[s_t]

It is to help with rent.

Any evidence?

The goverrment makes no such statement! At no point does it say specifically the money is to go towards rent. It can be received as a lump sum end of yr payment if desired.
You can read about it here:
http://www.familyassist.gov.au/Internet/FAO/fao1.nsf/content/payments-ra

So regarding the second part of my previous post, are you all for the governement reducing everything to the lowest common denominator?

 

[steveadl]

Any evidence?

The goverrment makes no such statement! At no point does it say specifically the money is to go towards rent.
You can read about it here:
http://www.familyassist.gov.au/Internet/FAO/fao1.nsf/content/payments-ra

So regarding the second part of my previous post, are you all for the governement reducing everything to the lowest common denominator?

Are we reading the same page? The whole pages refers to rent!

Rent Assistance gives extra help to you if you receive more than the base rate of Family Tax Benefit Part A, and pay rent to private landlords.

Rent Assistance is paid at the rate of 75 cents for each dollar of rent paid above the rent threshold...

To claim Rent Assistance you need to give us a copy of your current written lease or tenancy agreement.

You need to complete the Rent Certificate and be sure to give all the details of how much you pay in rent and who you pay it to. Your landlord will need to sign the Rent Certificate.

And how you cannot receive rent assistance if you are renting from a govt. agency, or are buying a home etc.

As to your second point, I understand what you're saying and tend to agree with you, but there shouldn't be a lot of complaint if people only use it for rent. The problem would arise for those who use it for other stuff. If they only used it for rent then they wouldn't have an issue. Whether they pay $200pw including $100pw assistance they received, or only have a bill of $100pw from the LL - there's no difference.

 

[s_t]

Yes, you've obviously got to have the expense of rent to receive it, but that doesn't mean it is only for rent!

Anyway, enough arguing on this rather minor issue

 

[alplant]

I honestly cannot think of one good reason why rent assistance shouldn't go immediately to the LL.

Be careful what you wish for. We had no end of trouble with tenants paying their rent through Centrelink. It started out reasonably ok. There was a $1.00 fee charged by Centrelink on each transaction. The tenants paid their rent fortnightly so we could live with that, although it meant that our yield was now down $2 a month. Then it changed to weekly and finally there were three separate payments of differing amounts coming in, each with that dollar fee. When we tried to find out what was going on we were told we had no right to know anything, the contract was between the Real Estate and Centrelink, nothing to do with the landlord, so more or less just cop it sweet. The Real Estate reckoned they weren't privy to the reasons for this either, privacy laws. We suspected that the rent was coming out of two or three different pensions but obviously we had no real idea. And as if that wasn't enough, when the rent was increased it took a couple of months for the new payments to start coming through.The real estate was next to useless to sort it all out, and we had other issues with them as well, so we changed real estates. The new one refuses to accept Centrelink payments at all because of the on going problems they have had with late payments etc.

 

[steveadl]

Yes, you've obviously got to have the expense of rent to receive it, but that doesn't mean it is only for rent!

Anyway, enough arguing on this rather minor issue

Deal...

 

[natmarie73]

They should just call it booze and ciggie allowance and be done with it

 

[steveadl]

They should just call it booze and ciggie allowance and be done with it

That would solve my problem with it.

 

[RumpledElf]

Also makes me wonder why someone with 6 kids on centerlink has trouble paying the rent. I worked out the figures for a friend whose sister has 5 kids and the payments are scarey high.

I cbf going to the site to get the exact figures so I'll just do some rounding, but assuming your ex-tenant was single (they usually are, it pays better)

Rent assistance about $60pw (it isn't high and isn't taxed)
Single parent pension about $550pf (taxed but is offset so in reality you never pay tax)
Per child around $150pf (varies by age, not taxed)
FTB is another $100 I think (not taxed)
If any children need 'care' ie adhd diagnosis, add $70pf each. The friend's sister was claiming this for all 5 kids, I'll assume your ex-tenant wasn't for this exercise, but I'd wager she actually was. It is very common. This is also not taxed.
Pensioners also get discount rego, bulk billing, no medical gaps, school card, discount electricity and phone (you get none of this if you are not a single parent, even if you earn less combined than a single parent), and of course everyone gets $5000 a pop for a baby - you said she had a newborn?

So we're talking around $1600 a fortnight here. Will get a tax return of $690 per kid too. So $41,000pa after tax, or $46,000 with the baby too, or $49,000 with the extra FTA tax rebate. What's that the equivalent of on a pre-tax income? $60,000pa? $70,000? More?

I realise I'm not citing exact figures, but you get the idea. And she has trouble paying rent????? Where does the money go? I almost guarantee it doesn't go to feeding those kids nourishing gourmet food and clothing them in Gucci clothes and buying really fancy mahogany furniture from Harveys.

Kids are cheap. I have two, one costs about $30pw in combined nappies/baby clothes off eBay that she grows out of within a month (and cost $500 to set up with everything in advance - we got a lot of gifties), and the other one is borderline free. Grandma makes her clothes, everyone gives her books, school is free, music lessons are free, she has a hand-me-down computer and she eats like a bird. Although I do admit to splurging several $100 earlier this year when she got a new (pink) bedroom, fully redecorated ...

 

[steveadl]

Spot on RE!

I remember at the time she got the baby bonus, my PM questioned her as to why she didn't at least pay some of the back rent she owed. Just the usual bleeding heart story about not being able to afford to.

You're right, she is 'single' and has the partner living with her who is also on benefits - despite him driving a ute and being out a lot during the day, go figure?

My fiancee used to see it all the time when she worked to get people off Centrelink payments. People sitting across the desk from her making more money that her by sitting at home doing nothing, without any intention of ever getting a job.

 

[Pushka]

Centrelink are only interested in whether or not the family should be getting entitlements and/or rorting the system. Unfortunately, the letter almost confirms that they should. Centrelink would have been much happier if you had said they owned several plasma TV's, drove a mercedes and seemed to live well above their expected level of income as a centrelink recipient.

The one thing that will interest them is the number of people (adults) living in the property. Unfortunately babies and children add 'cred' to their rent assistance application

 

[steveadl]

D'oh! Next time Pushka, except there won't be a next time.

I feel the same way though, don't think the letter will make any difference. That's why I wouldn't bother chasing up the issue myself, but if there going to send me out a nice reply paid envelope direct to the appropriate person, a 5min spiel can't hurt.

 

[s_t]

D'oh! Next time Pushka, except there won't be a next time.

How do you know there won't be a next time?

A family can earn up to $94k and get rent assistance! Are you going to reject anyone earning under that?

 

[Pushka]

D'oh! Next time Pushka, except there won't be a next time.

I feel the same way though, don't think the letter will make any difference. That's why I wouldn't bother chasing up the issue myself, but if there going to send me out a nice reply paid envelope direct to the appropriate person, a 5min spiel can't hurt.

Think of the letter as being Cathartic for you and a whole lot cheaper than getting professional counselling for stress!

 

[steveadl]

How do you know there won't be a next time?

A family can earn up to $94k and get rent assistance! Are you going to reject anyone earning under that?

Oh there will be at some point I'm sure. A bit of a tongue in cheek comment.

However I'm much more confident in general now as this was the last tenant in the area we 'inherited' - all current tenants going forward have been picked by my PM who is brilliant, so I don't expect as much trouble in the future.

 

[jasper]

Oh well,

Take comfort in the fact that your property manager should register the behaviour on the National Tenancy Database. It may not catch up with the tenant for this tennancy but it should for the following one.
Jasper

 

[jaycee]

Rent assistance would vary with each case Jaycee - I have no idea what it is. But the point is at least a portion of the rent would arrive on time. There is no need for it to even go to the tenant if it is for rent ie. it's not for kids clothes, it's not for groceries - that's why they also receive welfare payments if necessary - 'rent assistance' is just that. That's my opinion anyway.

No, Centrelink do automatic payments to lanlords. Someone here mentioned it costs the LL $0.50c-$1.00 per transfer. However the tenant is free to cancel that at their discretion and have the rent assistance sent back to them directly.

Dont misunderstand me, , I was jsut explaining what I know not having a go. Ithought ht rent asistance was "up to a a maximum of" an dthat was tit. My memory was somehting of about $90/fnight being aroudn the maxiimum, probalby years off.. I also thought the auto cnetre link - landlord was for full rnet only, not rent assistanc component, also tenat paid for it (?) suppose it could work..

how do we use it to our favour though ? Insist all tenancies = direct debit only / all centrelink = direct debit only ? not sure

 

[steveadl]

Dont misunderstand me, , I was jsut explaining what I know not having a go. Ithought ht rent asistance was "up to a a maximum of" an dthat was tit. My memory was somehting of about $90/fnight being aroudn the maxiimum, probalby years off.. I also thought the auto cnetre link - landlord was for full rnet only, not rent assistanc component, also tenat paid for it (?) suppose it could work..

how do we use it to our favour though ? Insist all tenancies = direct debit only / all centrelink = direct debit only ? not sure

Not sure, although my PM told me her office will no longer be accepting cash at their office from new tenants, from now on only direct debit. Perhaps they find people tend to be more reliable when they pay this way?