What is NRAS?

The National Rental Affordability Scheme, otherwise known as NRAS, was launched to provide assistance and funding to increase the supply of affordable rental dwellings to low to middle-income earners.

NRAS is a promise from the election in 2007 by the Australian Government to address the shortage of rental housing. They are doing this by offering a tax-free financial incentive to the business sector and not for profit housing providers to build and rent affordable dwellings.

NRAS aims to:

• Stimulate the supply of up to 50,000 new affordable rental dwellings in Australia, by June 2012
• Reduce rental costs for low and moderate income households
• Encourage large scale investment and innovative management of affordable housing.

The incentive is payable either as a grant or refundable tax offset and is paid annually for up to 10 years. To receive the incentive the investor must:

• Rent dwellings to eligible tenants
• Charge rent at least 20% below the market rent
• Provide the dwelling for participation in the scheme for 10 years.

NRAS tenants are typically key workers such as childcare workers, nurses, police officers, fire-fighters and paramedics. Approximately 1.5 million households are currently eligible to rent NRAS properties, ensuring a strong ongoing demand for NRAS properties.

Tennant Income Levels

Household type	Initial income limit $	Upper income limit $
One adult	42,386	52,983
2 adults	58,596	73,246
3 adults	74,808	93,510
4 adults	91,048	113,773
Sole parent with 1 child	58,638	73,298
Sole parent with 2 children	72,695	90,869
Sole parent with 3 children	86,752	108,440
Couple with 1 child	72,653	90,817
Couple with 2 children	86,710	108,388
Couple with 3 children	100,768	125,960

Benefits of NRAS for Investors

• The minimum annual $9,140 National Rental Incentive for each rental dwelling will improve rental yields over conventional residential investment properties.
• There is no limit on the amount of NRAS properties you can purchase.
• Rental incentive will increase by CPI it started off at $8,000 in 2008, in 2010 it is $9,140, What will it be in ten years time.
• The investor will still be eligible for the benefits of regular property investing, including depreciation.
• With more than 1.5 million households eligible to rent NRAS properties, the vacancy risk is negligible.
• NRAS is available to be purchased through a superannuation fund or property trust.

Further Information on NRAS (National Rental Affordability Scheme)

NRAS Information For Investors

NRAS Information For The Banks

NRAS Prospectus

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