❓ Hon Tim Clifford questions the adherence to the 75% market rent limit for community housing, citing anecdotal evidence of exceedances and potential GST implications. The Department of Housing and Works admits to not tracking rent data.

The standard formula for calculating rent for community homes involves a limit set at 75% of the market rent. However, theCommunity Housing Rent Setting Policystates that the only solid rule is that rents should not exceed the market rate, although providers should stick to the 75% limit to preserve their GST-free status under Federal law. We have anecdotal evidence of community housing clients being charged well in excess of 75% of market rent. I ask:(a) can we get an idea of how often the 75% limit is adhered to, and how often it is exceeded;(b) in reference to (a), are there numbers available; and(c) is it the case that some community housing providers are risking their GST-free status under Federal law? The standard formula for calculating rent for community homes involves a limit set at 75% of the market rent. However, theCommunity Housing Rent Setting Policystates that the only solid rule is that rents should not exceed the market rate, although providers should stick to the 75% limit to preserve their GST-free status under Federal law. We have anecdotal evidence of community housing clients being charged well in excess of 75% of market rent. I ask: (a) can we get an idea of how often the 75% limit is adhered to, and how often it is exceeded; (b) in reference to (a), are there numbers available; and (c) is it the case that some community housing providers are risking their GST-free status under Federal law?

(a-b) The Department of Housing and Works does not maintain a database of rents and market rents of Community Housing managed tenancies. The Community Housing Registration Office assesses the capacity and compliance of registered community housing providers in relation to rent setting in line with the Community Housing Rent Setting Policy. (c)     The Department cannot provide legal or tax advice on this matter.