The National Rental Affordability Scheme (NRAS or the Scheme) is a long term commitment by the Australian Government in partnership with the States and Territories, to invest in affordable rental housing.
The Scheme commenced in 2008 and seeks to address the shortage of affordable rental housing by offering financial incentives to persons or entities such as the business sector and community organisations to build and rent dwellings to low and moderate income households at a rate that is at least 20 per cent below the market value rent.
However on the other side, the NRAS provides an annual incentive to investors (either persons or other entities, like financial institutions, medium to large-scale investors, private developers, not-for-profit organisations and community housing providers) to build and rent new dwellings to low and moderate income households. The incentive is available to approved participants.
The annual incentives last for ten years (indexed annually for the rental component of CPI) and are made up of two parts:
1. A Commonwealth Government Incentive of $7,846 per dwelling per year as a refundable tax offset or payment
2. A State or Territory contribution of $2,587.00
Making a total of $10,350.00 for 2013-14
NRAS aims to:
- increase the supply of new affordable rental housing
- reduce rental costs for low and moderate income households
- encourage large-scale investment and innovative delivery of affordable housing.
The Australian Government is committed to stimulating the construction of 50,000 high quality homes and apartments, providing affordable private rental properties for Australians and their families.
There is lot of information available for investors on the website of Department of Social Services