About NRAS
What is NRAS?
The National Rental Affordability Scheme (NRAS) was introduced in 2009 by the Federal Government. NRAS is designed to encourage investment in residential housing and allows tax free incentives from Federal, State and Territory Governments (currently $10,917) to be paid to the owner of the NRAS allocation.
The NRAS payment increases in line with the rental component of CPI and is guaranteed every year for 10 years from rental availability date, subject to compliance with the scheme.
There is a national consensus, based on independent evidence, that Australia has a serious housing supply shortfall and an ongoing affordability problem that is impacting lower and moderate income families and individuals in increasing numbers. NRAS has successfully stimulated supply and met its affordability target. There is no better and more tax effective way to meet this national challenge. NRAS is good for housing, good for low income earners, good for employment and good for tax payers.
How did NRAS start?
NRAS was legislated after the National Housing Supply Council released its report on housing demand, supply and affordability over the next 20 years. The report highlighted the pressure on the private rental sector and identified several issues, including increasing rents and the difficulty of low to middle income households to access the private rental property and the reduced supply of social housing. The report identified several key issues in the housing industry, including:
The Council report estimated that by the end of 2013 there would be a shortfall in dwelling supply of 203,000 properties. The shortfall is expected to continue until 2028 when an increase in the supply of new homes will begin to meet future demand.
The National Rental Affordability Scheme (NRAS) was introduced in 2009 by the Federal Government. NRAS is designed to encourage investment in residential housing and allows tax free incentives from Federal, State and Territory Governments (currently $10,917) to be paid to the owner of the NRAS allocation.
The NRAS payment increases in line with the rental component of CPI and is guaranteed every year for 10 years from rental availability date, subject to compliance with the scheme.
There is a national consensus, based on independent evidence, that Australia has a serious housing supply shortfall and an ongoing affordability problem that is impacting lower and moderate income families and individuals in increasing numbers. NRAS has successfully stimulated supply and met its affordability target. There is no better and more tax effective way to meet this national challenge. NRAS is good for housing, good for low income earners, good for employment and good for tax payers.
How did NRAS start?
NRAS was legislated after the National Housing Supply Council released its report on housing demand, supply and affordability over the next 20 years. The report highlighted the pressure on the private rental sector and identified several issues, including increasing rents and the difficulty of low to middle income households to access the private rental property and the reduced supply of social housing. The report identified several key issues in the housing industry, including:
- Projected demand exceeding supply;
- Increasing housing costs affecting lower and middle income home buyers and tenants; and
- Planning and development processes that constrain housing supply and affordability.
The Council report estimated that by the end of 2013 there would be a shortfall in dwelling supply of 203,000 properties. The shortfall is expected to continue until 2028 when an increase in the supply of new homes will begin to meet future demand.
NRAS Links and Documentation
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Consent to release information to investors forms (DSS)
Application Form to Extend Lodgement of Statement of Compliance (DSS)
Application Form to Extend Lodgement of Market Rent Valuation (DSS)
Request to Withdraw Allocation (DSS)
Fact Sheet - Provisional Allocations
Fact Sheet - Maximum Permissible Rent
Fact Sheet - NRAS Regulation Amendments (4 November 2014)
Fact Sheet - NRAS Regulation Amendments (19 September 2014)
Application Form to Extend Lodgement of Statement of Compliance (DSS)
Application Form to Extend Lodgement of Market Rent Valuation (DSS)
Request to Withdraw Allocation (DSS)
Fact Sheet - Provisional Allocations
Fact Sheet - Maximum Permissible Rent
Fact Sheet - NRAS Regulation Amendments (4 November 2014)
Fact Sheet - NRAS Regulation Amendments (19 September 2014)