Rent Deduction Scheme
The easy way to pay your government rent.
- What is the Rent Deduction Scheme?
- Who can apply?
- How do I apply?
- How is my rent deducted from my Centrelink payment?
- What if my rent changes?
- What other deductions can I make?
- How do I know what deductions are being made?
- Where do I get more information?
What is the Rent Deduction Scheme?
The Rent Deduction Scheme allows you to have your government rent automatically deducted from your Centrelink payment and sent directly to your Housing Authority.
This scheme is provided by Centrelink in partnership with the State and Territory Housing Authorities. The service is free of charge and you can apply or withdraw from the Rent Deduction Scheme at any time.
Customers who choose to use the Rent Deduction Scheme benefit from its convenience and security, knowing that their rent payments are under control.
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Who can apply?
If you receive regular Centrelink payments and pay government rent then you can apply to use this scheme. If there are two or more people paying the rent, each person can choose to pay their share using the Rent Deduction Scheme.
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How do I apply?
To join the Rent Deduction Scheme, you need to contact or visit your local Housing Authority office and complete a deduction form.
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How is my rent deducted from my Centrelink payment?
The Housing Authority sends your details to Centrelink and requests a deduction be made from your payment. Centrelink updates your customer record with the deduction amount.
Each payday Centrelink deducts your rent from your payment and forwards it by electronic transfer to your Housing Authority along with details about the deduction. Centrelink will send you a letter telling you when your deduction will start and confirm how much will be taken out of your payment.
Note: You must continue to pay your rent in the usual way until you receive this letter. Centrelink will then start paying your rent from your Centrelink payment each payday and send it directly to your Housing Authority.
Sometimes Centrelink is not able to deduct the full amount requested if your Centrelink payment:
- is reduced because of income or earnings
- has been reduced or suspended
- is reduced because other deductions have been made, such as overpayments, leaving you with insufficient payment left for your rent deduction.
If this happens you will need to contact your Housing Authority to make other arrangements to pay your rent.
If your Centrelink payment is cancelled and then restored within 14 days, your deductions will automatically continue, otherwise they will stop. You will need to talk to your Housing Authority about restarting your deduction using the Rent Deduction Scheme if your Centrelink payment commences again or make other arrangements to pay your government rent.
If you move from one type of Centrelink payment to another, for example from Parenting Payment Partnered to Age Pension, your deduction will continue without you needing to do anything.
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What if my rent changes?
If the amount of your rent changes in any way, the Housing Authority will advise Centrelink of the new amount. Centrelink will then adjust your rent to the new amount for your next available payday and send you a letter advising you of the change.
If you no longer need rent deducted you can stop your deduction by simply contacting or visiting your local Housing Authority office and telling them. You can also use Centrelink’s online services to cancel deductions online. When your deduction is stopped, Centrelink will send you a letter confirming this and also advise your Housing Authority.
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What other deductions can I make?
The Rent Deduction Scheme is only used for government housing deductions. Centrelink also offers another deduction facility called Centrepay. Centrepay is a free direct bill-paying service offered to customers receiving payments from Centrelink. Through Centrepay you can choose to pay bills (such as electricity, gas, water, child care, telephone, education fees, private rent etc) by having a regular amount deducted from your Centrelink payment. Go to the Centrepay page for more information.
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How do I know what deductions are being made?
Centrelink will send you a letter when your deduction first commences and whenever a change is requested to the deduction amount.
The easiest way for you to check your own deductions is to use Centrelink’s online services.
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Where do I get more information?
For more information on the Rent Deduction Scheme contact your local State or Territory Housing Authority or you can telephone us on your normal payment number.
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