PRAAL is eligible to those who are assessed as within the Department of Communities (Communities) income limits, are at risk of eviction due to rental arrears, and are experiencing financial hardship.
A tenant is responsible for repaying the loan to Communities at a predetermined rate.
To find out if you are eligible to apply for a PRAAL loan, you will need to complete a Housing Options Assessment.
This can be completed via the link or collected at any Communities Housing Office and submitted in person, via email, by mail or fax. Where required, arrangements can be made to complete the form over the phone. The assessment will provide you with information about a range of housing products and services you may be eligible for based on your current household circumstances.
If the applicant meets the eligibility criteria, Communities will grant an interest-free loan designed to secure the tenancy by covering a maximum of up to six weeks' rental arrears.
The loan is paid directly to the landlord who must provide confirmation that the eviction will not proceed. The landlord or tenant must provide evidence/confirmation of this directly to Communities.
Eligibility criteria
To qualify for PRAAL you must meet the following criteria:
- Communities income and asset eligibility requirements
- Be a signatory to the Tenancy Agreement
- have an Aboriginal or Torres Strait Island Heritage, or have an Indigenous Australian child/family member in the household
- reside in the household ‘at risk’ of eviction with a minimum of two weeks and a maximum of six weeks rent arrears owed on the tenancy
- be experiencing financial hardship
- not be a tenant of community or public housing.
- For more information see PRAAL Policy.
How to apply
After completion of your Housing Options Assessment, if you would like to apply for PRAAL, request an application form from the Housing Officer. When submitting the completed form, you will need to supply:
- an income statement from Centrelink (further information on this below) or your employer
- proof of rental arrears via a letter from your landlord/agent
- a copy of the Notice of Breach or Termination Notice
- a reason for your rental arrears
- evidence of financial hardship
- the required field on the back of the brochure completed by your landlord.
If you are successful with your application the rental arrears will be paid on your behalf by Communities to your landlord.
An applicant who receives a Centrelink payment can complete an Income Confirmation Scheme Consent form that authorises Communities to obtain your income details electronically from Centrelink. This is a free service saving you time and money by not having to phone or go to a Centrelink office for an income statement.
Common reasons for financial hardship and non-payment of rent:
- cultural reasons
- contributing to family funeral expenses
- loss of financial contribution to the household
- accommodation – family visiting for short term stay for medical or cultural reasons
- medical reasons - ambulance bill or child/family member hospitalised.
How to pay the loan back
The minimum loan repayment is $25 per fortnight starting from the date of approval.
Payment can be made by direct deduction from your Centrelink payment, direct debit from your bank account or by using a Housing Authority Payment Card at any post office.
The applicant is responsible for repayment of the debt.
Any arrangement for the household to share the debt is a private matter between the applicant and members of the household.
If you would like to find out whether you are eligible for Shared Home Ownership or other housing assistance products and services, please visit a local Housing Office to complete a Housing Options Assessment.
