Cladding Hardship Scheme

The ACT Government is providing a concessional loan scheme to assist with the cost of remediation of combustible cladding on privately owned buildings in the ACT. More information on the scheme can be found at: www.act.gov.au/majorprojectscanberra/act-cladding-program

It is anticipated owners corporations will pass on the costs of the loan to individual unit owners through increased strata/unit fees. For owner occupiers who find themselves in financial hardship due to the increased fees, the Cladding Hardship Scheme allows payment of these fees to be temporarily deferred. Interest at the concessional rate will be applied to the amount of deferred loan repayments.

Unit owners who are eligible for the Cladding Hardship Scheme can have their increased fees deferred until the earlier of:

  1. the unit owner ceases to be in financial hardship;
  2. the unit is sold;
  3. the unit ceases to be the owner's principal place of residence; or
  4. the expiry of the Owners Corporation loan.

Following one of the above events, unit owners are expected to enter into an arrangement with their Owners Corporation to repay the deferred fees.

The ACT Revenue Office will assess unit owners’ eligibility for the Cladding Hardship Scheme. If approved, this information will need to be provided to the Owners Corporation. Owners Corporations are responsible for the recovery of levies, including providing the unit owner with information on the balance of any outstanding levies.

Eligibility Criteria

To be eligible to apply for the Cladding Hardship Scheme, an applicant must have:

  1. acquired their Unit before their Owners Corporation entered into a Concessional Loan agreement to fund the cladding remediation;
  2. continue to own their unit while the hardship support is being received; and
  3. use the unit as their principal place of residence while the hardship support is being received.

Income Test

To be eligible for the Cladding Hardship Scheme, the applicant/s income must be less than the Services Australia age pension cut-off points (regardless of if you are a pensioner or not).

If you’re a member of a couple, the limit is for both you and your partner’s fortnightly income combined.

Your situation Income cut off point
Single $2,243.00
A couple living together $3,431.20 combined
A couple living apart due to ill health $4,442.00 combined

Asset Test

To be eligible for the Cladding Hardship Scheme, the applicant/s assets must be less than the Services Australia part pension cut-off points (regardless of if you are a pensioner or not).

If you’re a member of a couple, the limit is for both you and your partner’s assets combined, not each of you.

Please be aware that your assets do not include your home (the unit you are applying for the Cladding Hardship for).

Your Situation

Homeowner

Single

$609,250

A couple, combined

$915,500

A couple, separated due to illness, combined

$1,077,500

Applicants will be required to demonstrate financial hardship, and will be assessed on a case-by-case basis against criteria including:

  1. An inability to meet current financial obligations (e.g. home loan, immediate living expenses); and
  2. Lack of accessible savings and equivalent sources of funds; and
  3. Low income due to, for example, unemployment, pensioner or loss of a business; and
  4. Asset holdings under a certain threshold.

Required Supporting Evidence

Applicants are asked to provide a statement of reasons for their request as well as evidence to allow for an assessment of financial hardship. Applicants may be contacted to provide further documentation or information to support of their application.

If the unit owner has a residential partner, income and asset details will be requested as part of the application form and will need to be provided to form part of the financial hardship assessment process.

If Your Circumstances Change

Unit owners who are receiving the Cladding Hardship Scheme will be required to inform the ACT Revenue Office of any changes to their circumstances that may affect their continuing eligibility. As the Cladding Hardship Scheme is a temporary measure, the ACT Revenue Office may contact unit owners to determine their continued eligibility.

The Revenue Office can be contacted by email at claddinghardshipscheme@act.gov.au.