The National Rental Affordability Scheme (NRAS) is an Australian Government initiative to stimulate the supply of new affordable rental dwellings by up to 50 000 by June 2012. Successful NRAS applicants are eligible to receive a National Rental Incentive for each approved dwelling where they are rented to eligible low and moderate income households at 20 per cent below market rates.

Potential investors in investment vehicles involving the NRAS should note that the allocation or reserved allocation of National Rental Incentives does not constitute Government endorsement of the development proposal as an investment opportunity.

Governments, the business sector and community organisations recognise that housing affordability is an issue of significant community concern. The growing cost of housing is having a serious impact on the ability of many Australians to meet their financial commitments.

Under NRAS, the Australian Government is providing Incentives to:

The two key elements of the Incentive are:

The Incentive is provided annually on the condition that throughout the ten year period the dwelling is rented at 20 per cent below the market rent to eligible low and moderate income households.

NRAS is designed to pool significant resources from a range of participants including financial institutions, non-profit organisations and Local Government which, when combined with the Incentives from the Scheme, will increase the supply of lower-rent housing. These resources could include loans; equity investments; capital grants by Commonwealth, State and Territory or Local Governments; donations by charities; free or discounted land by churches; or contributions by developers in accordance with planning requirements.

The tenant eligibility criteria ensure that the Scheme is open to a range of household types on low and moderate incomes.

  Read more at the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) website >>>