The National Rental Affordability Scheme

The National Rental Affordability Scheme (NRAS) is an Australian Government initiative to increase the supply of new affordable rental dwellings by up to 50,000 by June 2012.

Under NRAS, the Federal, State Governments & Territories are providing incentives to approved applicants to;

• Increase the supply of affordable rental dwellings for key workers & tenants experiencing rental stress
• Reduce rental costs for low to moderate income households
• Encourage large scale investment and innovative delivery of Affordable Housing by the private sector

NRAS payments to investors;

• NRAS offers annual tax free incentive payments for ten years.
• Payments increase annually & are indexed in line with the rental component of CPI
• Payments are made annually to the owner of the property(via the approved applicant)
• The NRAS payment for the 2010/2011 year is $9140. Federal Government ($ 6855) State or Territory Government ($ 2285)
• Properties must be made available at 20% below market rent, to income eligible tenants.

For detailed information provided by the government please go to the Fachsia website.