Rent Assistance for Grandparents Raising Grandchildren in Australia

Housing costs are usually the biggest line item for grandparent carers, and taking in a grandchild often means needing more space on the same pension. Centrelink's Rent Assistance can help — but most grandparents don't realise that receiving Family Tax Benefit for a grandchild changes their Rent Assistance calculation, sometimes significantly.

Who Qualifies for Rent Assistance

Rent Assistance is not a standalone payment. It's an add-on paid with a qualifying Centrelink payment. For grandparent carers, the most common qualifying payments are:

• Family Tax Benefit Part A at more than the base rate (this alone qualifies you, even without a pension)
• Age Pension
• Disability Support Pension
• Parenting Payment Single or Partnered
• Carer Payment

You must be paying eligible rent (or board and lodging above a minimum amount) for your principal home, and the rent must be above the minimum threshold before Rent Assistance starts. You don't qualify if you own your home outright, rent from a state or territory housing authority, or live rent-free.

How a Grandchild Changes Your Rate

Here's where it gets useful. Rent Assistance rates differ for people with dependent children. If you receive more than the base rate of FTB Part A for a grandchild and pay eligible rent, Services Australia assesses you under the Rent Assistance with FTB rate. Your amount depends on your circumstances, the number of children in your care, and your rent.

From 20 September 2026, a single person with one or two children can receive up to $263.06 per fortnight with FTB when fortnightly rent reaches $558.09. Rent Assistance starts when eligible rent is more than $207.34 per fortnight.

Your actual amount can differ from the maximum and depends on your eligible rent and circumstances. The maximum rate for a single person with one or two children is $263.06 per fortnight.

To make sure you're getting the right rate:

1. Lodge your FTB claim (this is what registers the grandchild as a dependant).
2. Confirm your rent details are up to date on myGov — go to your Centrelink account → Income and assets → Accommodation.
3. Upload a copy of your lease or a rent certificate (form SU523) if Centrelink asks.

Board and Lodging Arrangements

Some grandparent carers live in shared households and pay board rather than formal rent — for example, living with an adult child and contributing to the mortgage or household costs. Centrelink treats board and lodging differently from rent: it assesses the lodging amount. If you can't tell Centrelink how much of your combined board and lodging payment is for lodging, it uses two-thirds of the total as rent.

If you're paying board, report it through the accommodation section of your Centrelink record. The system will calculate the assessable amount automatically.

The Energy Supplement

The Energy Supplement is a small fortnightly payment designed to help with electricity and gas costs. For grandparent carers, the rate depends on which payment you receive:

• Age Pension / DSP single: $14.10 per fortnight
• Parenting Payment Single: $12.00 per fortnight for a single parent under Age Pension age
• FTB Part A (per child, maximum): $3.50 per fortnight (age 13 and under) or $4.48 (ages 13–19)
• FTB Part B: $2.80 per fortnight if the youngest child is 4 or under, or $1.96 if aged 5–18

The FTB-related Energy Supplement is paid with your FTB — you don't need to apply separately. FTB recipients only receive it if they have maintained eligibility since 19 September 2016. This grandfathering rule does not apply to Age Pension or DSP rates. Check your Centrelink payment breakdown on myGov to confirm.

Getting Both Right

Rent Assistance and the Energy Supplement are calculated automatically once your Centrelink record reflects the grandchild. The key step is making sure your FTB claim is processed and your accommodation details are current. If your rent has changed since the grandchild moved in — because you moved to a larger place, for example — update your accommodation details the day you start paying the new amount.

The Centrelink Payments for Grandparents guide maps out every add-on payment alongside the core claims, so nothing falls through the gaps between your pension, your FTB, and the supplements that attach to each.

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