Hi everyone,
We have a person interested in purchasing a wrap through us, however they are receiving rent assistance & family tax benefit from centrelink in Victoria. Would these payments still apply if they were effectively purchasing?
Thanks!Dear Elements of Design,
Am not 100% sure but I would believe that the rent assistance will go but the family tax benefit will stay.
Anybody know for sure?Best regards
Gavin
Hi Elements of Design
Gavin is correct. Once a wrap contact is signed the purchaser is no longer renting and therefore losses their rent assistance payments. Perhaps you should consider using a Lease Option if it is important for the purchaser to remain cashed up from receipt of rent assistance.
It sounds a bit risky though, if your purchaser is reliant on rent assistance monies to met payments under a wrap contract !!!Cheers
NessieHi E.O.D.,
It’s your luky day… i just happen to work at Centrelink… so here is some direction in regards to your questions!
1. Rent assistance will go. No ifs buts or maybes.
2. There are two types of family tax benefit (FTB) and although i dont personally deal with this type of benefit i would be quite confident in telling you that neither are subject to asset testing, and as such should not be affect by this person entering into a wrap contract. However, for a clear cut defining decision i would strongly suggest you have your potential wrapee ask centrelink directly and request written info confirming the situation!!
The info i have provided you with is MY interpretation only of the relevant legislation and must be taken as such. (gotta tell you that, company policy!!)
Hope this helps a bit!
cheers,
Michael…“Read books, listen to tapes, attend seminars – they are decades of wisdom reduced to invaluable hours.” – Mark Victor Hansen
Family Tax Benefit is income assessed………been there done that and it’s very complicated for self employed who have great accountants like mine(who get our incomes down low)….Judy Anderson at One 2 One Accounting Southport – will deal with people all over oz……..not sure about os, but probably. Her number is 07 55 327622 if u need a good one.
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