Rent Assistance in a Share House: How CRA Works for Shared Accommodation

Commonwealth Rent Assistance (CRA) is available to Centrelink recipients who pay rent, including those living in share houses. The key principle is that CRA is based on the amount of rent you personally pay, not the total rent for the property.

If you share a house with 3 other people and the total rent is $800 per week ($1,600 per fortnight), your share of $200 per week ($400 per fortnight) is what Centrelink uses to calculate your CRA. For a single person with no children, the maximum CRA is $188.20 per fortnight. CRA kicks in once your fortnightly rent exceeds $135.20, increasing by 75 cents for every dollar of rent above that threshold until the maximum is reached.

Let's break this down. With rent of $400 per fortnight, your CRA would be ($400 minus $135.20) times 0.75 equals $198.60, but capped at the maximum of $188.20. You receive the full maximum CRA.

For CRA purposes, rent includes regular payments you make for the right to occupy a dwelling. This includes: formal lease payments to a landlord (whether you're on the lease or a sub-tenant), board payments if you're a boarder (only the shelter component — typically 2/3 of the board amount if meals are included), payments for a room in a share house, caravan park site fees, retirement village maintenance fees (the accommodation component), and mooring fees for a houseboat.

Rent doesn't include: mortgage repayments (even if your housemate owns the property), payments to a government housing authority for public housing at less than market rent (CRA is reduced or nil), board payments to a parent if you live at home (unless the ATO would consider it a genuine tenancy), and body corporate fees. If you pay an all-inclusive amount covering rent plus utilities, Centrelink may need to determine the rent component separately.

Many share house arrangements are informal — you may not be on the lease or have a written agreement. Centrelink still accepts CRA claims in these situations, but you need evidence.

The strongest evidence is a formal sub-lease or co-tenancy agreement, but alternatives include: a letter from the head tenant or landlord confirming you live there and pay rent of a specific amount, regular bank transfer records showing consistent rent payments to the head tenant or landlord, a statutory declaration from you and your housemate describing the arrangement, rent receipts (even handwritten ones signed by the person receiving rent), or a Centrelink Rent Certificate (SU523HD) completed by your landlord or head tenant. If you pay rent in cash, start paying by bank transfer instead — electronic records are much stronger evidence. Centrelink may contact your landlord or head tenant to verify your arrangement, so ensure they're aware you're claiming CRA.

Quick reality check. If you're a couple sharing a house with other people, your CRA is calculated based on your share of the rent as a couple (not individually). For a couple with no children, the maximum CRA is $177.20 per fortnight, starting when your combined rent exceeds $220.40 per fortnight.

If you're a couple with children sharing accommodation, the maximum CRA is $209.58 per fortnight (1-2 children) or $237.18 (3+ children), with higher rent thresholds. Your "share of rent" is the amount you as a couple or family pay, regardless of how many other people live in the property. If you and your partner pay $500 per fortnight for your rooms in a shared house, the full $500 is assessed for CRA. If you're separated from a partner but still sharing the house (separated under one roof), each person claims CRA individually based on their personal rent contribution. Centrelink may request a Relationship Details form to verify your arrangement.

Several issues commonly arise with CRA in share houses. Rent increases: if your rent goes up, update Centrelink within 14 days to receive the higher CRA — you can't be backdated for late notifications.

Housemate changes: if a housemate moves out and your share of rent increases, report this to Centrelink. Paying rent to a partner or family member: CRA is generally not available if you pay rent to your partner, parent (if under 25 on Youth Allowance), or child. However, if you rent from a sibling, uncle, or other non-immediate family member at arm's length market rates, CRA may be payable — Centrelink assesses whether the arrangement is a genuine tenancy. Government housing: if you live in public housing or community housing, CRA is generally not payable as the rent is already subsidised. However, if you share a private rental and one housemate receives public housing assistance but you don't, your portion of rent may still qualify for CRA. Always declare your full living arrangements to Centrelink to avoid debts.