If my 2 over 25-year-old children who still live at home and are on Centrelink benefits pay me $400 a fortnight each for board and lodging and claim rent assistance. Do I need to declare this as rental income? It is becoming very difficult to keep them at home without charging them more to live here.
If you charge someone the basic amount for board and lodging to cover expenses, it isn't seen as income for your taxes. However, if you are charging commercial rent rates, it is seen as income you'd need to declare, which you can also claim deductions against. See information on the ATO's website, under domestic arrangements.
However, I can't say what Centrelink would say and if they consider that your children are paying sufficient rent to get rent assistance.
You'll need to ask Centrelink this question as well.
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If you charge someone the basic amount for board and lodging to cover expenses, it isn't seen as income for your taxes. However, if you are charging commercial rent rates, it is seen as income you'd need to declare, which you can also claim deductions against. See information on the ATO's website, under domestic arrangements.
However, I can't say what Centrelink would say and if they consider that your children are paying sufficient rent to get rent assistance.
You'll need to ask Centrelink this question as well.
Thanks. Going by the Centrelink website Rent has to be $390 a fortnight to claim max rent assistance.
It is for lodgings only not board. Does this make a difference?
Hi @Katgewill
I can help with this, any domestic nature arrangements, including payments from family members in the form of board and lodgings aren’t declared as income.
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