The maximum grant is $3,000, but not everyone will receive the full amount. The grant is designed to reduce your rent to 30% of your income (before tax) where possible.
Example 1 – part grant payable
Sally had a weekly income of $1000, which was reduced to $750 because of COVID-19. Her rent was $320 a week, but her landlord agreed to reduce it to $270.
The government expects Sally to pay up to 30% of her income towards rent: 30% of the $750 she earns per week is $225. However, her rent is $45 more than that ($270). She is therefore eligible for a grant of $45 x 39 weeks (the current length of the grant period), which equals $1755. This amount will be paid to Sally’s landlord.
Example 2 – full grant payable
Like Sally, Alex had his income reduced from $1,000 a week to $750 due to COVID-19. His rent was $380 a week, and his landlord agreed to reduce it to $320.
Again, the government expects Alex to pay up to 30% of his income towards rent: 30% of the $750 he is earning per week is $225. However, his rent is $320, $95 more; $95 x 39 weeks equals $3705, which is more than the $3000 limit. Alex is therefore eligible for the maximum grant of $3000, which will be paid directly to the landlord.