Bond loans and credit for unemployed people receiving Rent Assistance in Australia

What Rent Assistance does and does not do

Rent Assistance is a fortnightly payment from Services Australia added to certain income support payments, family payments or ABSTUDY. It is for people who pay rent above a minimum amount, and it stops at a maximum.

For every dollar of rent above the minimum, you receive 75 cents, up to the cap. It lowers your ongoing housing cost, but it is not a lump sum, so it does not fund a bond, removalist or furniture.

Why the move-in costs are the problem

Moving into a new rental typically means paying a bond and rent in advance in the same week. For someone living on a payment, that can be several weeks of rent at once.

Because Rent Assistance changes when your rent, income or living arrangements change, tell Services Australia about any move. It can alter the amount you receive.

If you share a house, your rent for Rent Assistance purposes may be treated differently from a sole tenant's, and a lower single-sharer rate can apply. Make sure the amount you report matches your lease, so the payment you rely on is correct.

Queensland: bond loans and rental grants

The Queensland Government lists several types of help. A Bond Loan covers the bond on a new home, up to four weeks' rent, and must be repaid with no interest or fees. A Bond Loan Plus adds two weeks' rent, up to six weeks in total.

A Rental Grant is different: it is a one-off payment of two weeks' rent for people in housing crisis, paid to the owner or manager and not repaid. Your first rent may fall due before your application is processed, so keep some funds available.

Victoria: Homes Victoria bond loans

In Victoria, Consumer Affairs Victoria explains that government bond loans are available to people on low incomes who cannot pay the bond and have no other options. Applicants must meet the criteria, which include being an Australian permanent resident.

A loan may cover the whole bond or just part of it, in which case you or another renter pays the rest. The loan cannot be transferred to someone else.

Ask the housing department how long assessment usually takes and whether the money is paid to you or to the rental provider. Some schemes pay directly, which changes how you plan your first week in the new home.

Other states and territories

Most states and territories run a similar scheme, but names, limits and eligibility rules differ. Look for the housing department or tenancy authority in your own state, and read the criteria on the official page rather than relying on a summary.

• Check whether the loan is interest-free.
• Ask how and when it must be repaid.
• Find out what happens to the bond at the end of the lease.

What happens when the lease ends

In Victoria, if the rental provider makes no claim, the bond returns to Homes Victoria and you owe nothing further. If part is claimed, you are encouraged to repay the amount kept, and a bond with no claim form lodged can remain as a debt against you.

Keep your condition reports and photos. They help protect you from unfair claims whoever paid the bond.

Using credit for a bond, and the alternative

Putting a bond on a credit card or payday loan can turn a housing problem into a debt problem. High-cost credit adds fees at the time you can least afford them.

The No Interest Loan Scheme can lend up to $3,000 for a bond on a new property for people who meet its income or concession card test. If a state bond loan is not available to you, ask a local provider about it.

Preparing your application

Gather your lease or rental offer, proof of identity, and recent income statements before applying. Agents and owners often want a quick answer, so being organised helps.

Ask the agent for the bond amount in writing, along with the weekly rent and the date the first payment is due. Those figures are what the housing department will ask for.

If you are leaving a home with an existing bond, ask when it will be released, since a returned bond can sometimes reduce what you need to borrow.