What's
Bond Assistance?
General
Overviews
The
Department of Housing and Works offers bond assistance as an interest-free
loan to help people obtain accommodation in the private
rental market. The loan is repaid in regular payments
of at least $15 per fortnight. Applicants must meet
public housing income and asset limits, and should be
16 years or over.
The
bond loan cannot be used for other expenses such as
advance rent or letting fees, and rent cannot be more
than 60 per cent of an applicants gross income. The bond must
not have already been paid.
The
applicant can call into any Department of Housing and Works office
(no appointment is necessary) and their application
will be processed immediately. They will need to supply
documents to show proof of income and identity. If approved
for bond assistance, Homeswest will confirm this immediately
with the landlord and arrange for prompt payment.
This
loan scheme is extremely popular, with some 13,000 loans
approved each year.
The
maximum levels of assistance available are currently
as follows:
| Household
Type |
Maximum
Level of Assistance |
| Single |
$400
|
| Two
people without dependants |
$550 ($275 each)
|
| Three
people without dependants |
$620 |
| Couple
or supporting parent with one child |
$550
|
| Couple
or supporting parent with two children |
$620
|
| Couple
or supporting parent with three children |
$740
|
| Couple
or supporting parent with four children |
$740
|
| Two
or more non-related persons with up to three dependant
children |
$740
|
| Two
or more non-related persons with four or more dependant
children |
$740
|
How
the process works
Step
1
The tenant applies for a bond loan at any office of
the Department of Housing and Works.
Step
2
If eligible, the tenant will be given a letter addressed
to the Landlord or Property Agent confirming the following:
- "in
principle" approval of the loan
- the
name of the tenant/s approved and the maximum amount
of the loan
- the
date the letter was issued with the name and signature
of the Department of Housing and Works officer approving the loan.
A
form will also be attached to this letter.
Step
3
The Landlord or Agent is to complete the Tenancy and
Landlord Details form attached to the letter presented
by the tenant. The form requires information about the
tenant, the bond and rent amounts, the rental property
and Landlord or Agent details. Once completed and signed,
the form should be handed back to the tenant.
Step
4
The tenant returns to the Department of Housing and Works office
and presents the completed form. The Department then gives
final approval of the loan. The tenant will make their
first loan repayment to the Department. The officer approving
the loan will then confirm the approval by telephoning
the Landlord/Agent. Do not sign a lease agreement or give the tenant
keys to the property until the loan is confirmed by telephone.
Step
5
A bond cheque made payable to the Landlord/Agent will
be forwarded to the Landlord within ten working days.
Step
6
The Landlord/Agent is required under the Residential
Tenancies Act of 1987 to jointly sign with the tenant
a Form 8 "Lodgement/Variation of Security Bond
Money". The bond should then be deposited either
with the Bond Administrator or an approved account
held by the Landlord/Agent.
Step
7
At the conclusion of the tenancy, the Landlord/Agent
is required under the Residential Tenancies Act of 1987
to jointly sign with the tenant a Form 4 "Joint
Application for Disposal of Security Bond".
Where a tenant signature cannot be obtained, then a
Court Order from a Magistrate of the Local Court must
be obtained approving disposal of the bond.
Unless
notified by the Department of Housing and Works in writing, any
bond refund should be directed back to the Department
and not the tenant. The Department will then refund any
credit balance due to the tenant.
|
