ABOUT NRAS

The National Rental Affordability Scheme seeks to address the shortage of rental housing and rapidly rising rents by offering a National Rental Incentive to providers of new dwellings on the condition that they are rented to eligible low and moderate income households at 20 per cent below-market rates. The incentive comprises:

• an Australian Government contribution in the form of a payment or a refundable tax offset to the value of $6,000 per year for each individual dwelling for 10 years. Not-for-profit organisations endorsed as charities by the Australian Taxation Office will receive the contribution in the form of a payment; and
• a State or Territory Government contribution to the value of $2,000 or more in the form of a payment or other in-kind support.

The Scheme will help create 50,000 affordable rental dwellings across Australia by 2012, with dwellings managed by Tenancy Managers in accordance with relevant State or Territory Government regulatory requirements. The Recipient of the Incentive will be subject to specific reporting requirements in relation to tenancy selection and management and other aspects of compliance with the Scheme's requirements.

The Australian and State and Territory Governments will have the ability to apportion, withhold, offset or withdraw the National Rental Incentive in the event that the requirements of the Scheme are not met.

By requiring a reduction on market rent of 20 per cent, the Scheme substantially improves affordability for tenants. It also provides tenants with stronger security of tenure than is currently available to them in the wider private rental market.

The National Rental Affordability Scheme is being implemented in two phases:

• the Establishment Phase will run from July 2008 to June 2010 and will provide for the allocation of 11,000 National Rental Incentives; and
• the Expansion Phase will run from July 2010 to June 2012 and will provide for the allocation of 39,000 National Rental Incentives.

Incentives will be allocated on the basis of a competitive selection processes.

More information on the NRAS can be obtained via the Department of Families, Housing, Community Services and Indigenous Affairs website.

_{Source: Department of Families, Housing, Community Services and Indigenous Affairs (2008:5) National Rental Affordability Scheme: Draft Guidelines. Canberra.}