What Is NRAS
The National Rental Affordability Scheme (NRAS) is a Government initiative to stimulate the supply of rental dwellings around Australia.
The Scheme offers an annual tax-free incentive of $9,140.00 for ten years to each rental dwelling nominated under the scheme (indexed annually to the rental component of the CPI).
In addition to this, many State and Local Governments have provided generous planning incentives where NRAS approved dwellings are to be built.
Currently, housing affordability is at crisis levels. For society to function people need to live affordably in or around areas where they work. Key workers such as nurses, teachers, police officers, fire fighters, ambulance operators and other members of society need to be able to access housing which is affordable. This generally means that they do not spend more than 30% of their household income on rent.
The incentive is available to nearly all dwelling types such as houses, apartments, villas, flats, town houses and the like.
The National Rental Affordability Scheme is designed to address the housing affordability crisis by increasing the supply of rental housing. The scheme aims to do this by issuing 50,000 NRAS incentives by June 2012, and another 50,000 if demand remains strong after this date.
Who Is Eligible to Rent the Dwellings?
| Household type | Initial income limit $ | Upper income limit $ |
|---|---|---|
| One adult | 42,386 | 52,983 |
| 2 adults | 58,596 | 73,246 |
| 3 adults | 74,808 | 93,510 |
| 4 adults | 91,048 | 113,773 |
| Sole parent with 1 child | 58,638 | 73,298 |
| Sole parent with 2 children | 72,695 | 90,869 |
| Sole parent with 3 children | 86,752 | 108,440 |
| Couple with 1 child | 72,653 | 90,817 |
| Couple with 2 children | 86,710 | 108,388 |
| Couple with 3 children | 100,768 | 125,960 |
The Commonwealth has identified 1.5 million Australian Households as eligible for assistance under the NRAS Scheme.
Mandatory Requirements
Mandatory requirements include:
- Dwellings will be rented to ‘eligible tenants’
- Dwellings will be rented for a period of 10 years
- Dwellings will be rented at a rate that is at least 20 per cent below market rate
- Dwellings must either:
- not have been lived in as a residence or
- not have been lived in as a residence since having been made fit for occupancy where otherwise the dwelling was recognised as being uninhabitable or
- if it has been converted to create additional residences, then a part of the dwelling or building that is capable of being lived in as a separate residence must not have been lived in as a separate residence
- Dwellings will comply with State, Territory and Local Government planning and building codes and requirements.
Assessment Criteria
There are five Assessment Criteria which applicants must address for their Application to be considered under the Scheme. These Criteria are:
- There is a demonstrated need for the Proposal
- The Proposal addresses Priority Areas of Interest
- The Proposal delivers accessibility and sustainability outcomes
- The Entity or Organisation has demonstrated capacity and experience
- The Proposal is financially viable
While the National Rental Affordability Scheme has several restrictive requirements relating to who can access the incentives, buying and selling the properties, and dealing with the extensive competitive application process, National Housing Group was initiated to overcome these limitations and allow for an effective implementation of the National Rental Affordability Scheme.
The Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) is responsible for administering and implementing the scheme.
More information regarding the National Rental Affordability Scheme can be found on the FaHCSIA website. Click here to access