New water charges for public housing tenants

This information is adapted from the Department of Housing website. For more information visit ‘Policies and forms’ at www.housing.nsw.gov.au

• What has changed?
• Who does it apply to?
• How will it be charged?
• How much will it cost?
• How do tenants pay for it?
• Financial hardship

What has changed?
The NSW Parliament has amended the Residential Tenancies Act 1987 to enable the Department of Housing (DOH) to charge tenants for water usage. The changes will be introduced in two stages.

Who does it apply to?
From 5 December 2005 (Stage One), all new and existing tenants will pay a water usage charge, whether or not their property is separately metered. All residential properties or tenancies managed by DOH (including Aboriginal Housing Office tenancies) are required to pay for water usage. The department will pay for water usage in separately metered common areas. For common areas that are not separately metered the cost of common water usage will be taken into account by reducing the state-wide percentage rate that is applied to tenants’ net rent. Where the tenant is away on an approved absence from the dwelling and no other persons are living in the dwelling, there is no water usage so no water usage charge applies.

How will it be charged?
The water usage charge is an additional charge that is separate from the rent charge. Each tenant has a water account, which is separate from their rent and other accounts. Each week the department will place the fee for water usage onto the water account. This account has its own Payment Reference Number and replaces the former Excess Water Account. A full written account of tenants’ water usage charges will appear on the rent statement which the department sends to tenants each quarter. The February 2006 rent statement will be the first to show details of a tenant’s new water account.

How much will it cost?
The charge is calculated by applying a state-wide percentage (4.1%) to each tenant’s net rent. All tenants will be charged a minimum of $1 per week and a maximum of $7 per week. This state-wide percentage and weekly cap will be reviewed annually to reflect changes in the total water usage of unmetered properties and changes to the cost of water set by NSW water authorities. In mid-2006 (Stage Two), DOH will adjust the water account of tenants with a separate water meter, to reflect their actual usage.

How do tenants pay for it?
Public housing residents who receive income from Centrelink can pay their water usage charge through the Rent Deduction Scheme (RDS) by authorising deductions from their Centrelink payment. Most residents do that now for their rent. Any household member can pay the water usage charge. The water usage charge can also be paid with a tenant card at Australia Post or by direct debit from a savings account with a bank or other financial organisation.

Financial hardship
At Stage Two, DOH will consider discounts on water usage for tenants of separately metered properties whose households can establish they have high water usage because of their health and/or disabilities. Where a tenant has difficulty paying their water charge, they should contact their local DOH office. Under a further amendment to the Residential Tenancies Act 1987 EWON is to review any guidelines in force as soon as possible after two years from the policy commencement date.