NSW Social Housing for Kinship Carers

Social Housing and Kinship Care in NSW

Taking on a grandchild or relative's child often means you need a bigger home — or at least another bedroom. If you are a pensioner or low-income carer in NSW, social housing through Homes NSW (formerly Housing NSW) may be an option. The rules around how kinship care allowances interact with your rent assessment matter, and understanding them before you apply can prevent expensive surprises.

DCJ Allowances Are Not Counted as Income

This is the single most important rule for kinship carers in social housing. Homes NSW classifies Statutory Care Allowances, Supported Care Allowances, and Guardianship Allowances as non-assessable income for rent subsidy calculations. These payments are treated as reimbursements for the cost of raising a child on behalf of the state, not as personal income.

That means a grandparent on the Age Pension who is also receiving $806 per fortnight in DCJ care allowance will have their rent assessed solely on the pension, not on the pension plus the care allowance. This preserves the subsidised rent rate and avoids the perverse outcome where caring for a child would price you out of affordable housing.

Centrelink Family Tax Benefit (FTB) Parts A and B are assessable for Homes NSW rent subsidy calculations when paid fortnightly or recurrently. FTB paid as a lump sum through the tax system is non-assessable. Confirm how your payment is recorded with your housing provider.

Applying for Social Housing

If you are not already in social housing and need to apply, the process starts with a Housing Pathways application through Homes NSW or a participating community housing provider. You can apply online, by phone, or in person at a Homes NSW office.

Eligibility depends on:

• Income — your gross assessable household income must fall within the current limit for your household size. Receiving the Age Pension, Disability Support Pension, or Carer Payment does not by itself establish eligibility.
• Assets and property — Homes NSW assesses whether you own assets or property that could reasonably resolve your housing need. Do not assume a home you own is automatically excluded.
• Residency and status — you generally must live in NSW and be an Australian citizen or permanent resident; specific exceptions apply.
• Need — your current housing must be inadequate, unaffordable, or inappropriate for your household composition.

Priority Housing for Kinship Carers

Priority housing is assessed against three criteria: you must be eligible for social housing, have an urgent housing need, and be unable to resolve that need in the private rental market. An urgent need may involve unstable housing, risk factors, or accommodation that is unsuitable for your basic housing requirements. Kinship care alone does not establish priority.

If you already have a social housing tenancy, you can ask for a transfer when your circumstances make the home unsuitable. Homes NSW lists transfers to meet the needs of a child returning from out-of-home care or to help prevent a child entering care among its priority transfer grounds. You must show that the ground applies and provide supporting evidence, such as placement or custody documents and relevant housing or medical information.

Bedroom Requirements

Bedroom entitlements vary between social housing providers. Under Homes NSW's standard public housing rules:

• Children of the same sex can share a bedroom up to age 18.
• Children of different sexes can share a bedroom up to age 10.
• A child with a disability may require a separate bedroom depending on their care needs.

If a child comes into your care and your current property does not meet your household's needs, ask your provider whether you meet the criteria for a transfer or an additional bedroom. The provider assesses the evidence and the applicable transfer ground.

If You Are Already in Social Housing

If you already hold a social housing tenancy and a child comes into your care:

1. Notify your housing provider within 28 days — report the change in household members. The provider will review whether it affects eligibility or priority.
2. Confirm the rent treatment — remind the housing officer that DCJ care allowances are non-assessable income. Bring a copy of your DCJ allowance letter or payment summary to the appointment.
3. Ask whether a transfer is available if the property is now overcrowded — the provider will assess your circumstances and supporting evidence against its transfer criteria.
4. Apply for any available property modifications — grab rails, ramps, or other modifications if the child has a disability.

Private Rental Assistance

If social housing is not immediately available, Homes NSW also administers:

• Rentstart — bond loans and advance rent payments to help you secure a private rental.
• Private Rental Subsidy — temporary subsidies to reduce private rent to an affordable level while you wait for social housing.
• Temporary Accommodation — short-term emergency accommodation if you are in crisis.

These services are available through the Housing Contact Centre or your local Homes NSW office.

The NSW Kinship Carer Support guide covers every payment that affects your housing position — DCJ allowances, Centrelink entitlements, and how each interacts with social housing rent assessments — in one reference.

See more New South Wales guides →