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The National Rental Affordability Scheme, explained.

NRAS is a Government program designed to stimulate investment in the rental property market through tax-free incentives. Its goal: To address the nationwide housing shortage by increasing the supply of affordable rental housing across Australia.


NRAS and Australia’s rental affordability crisis

Launched in 2007, the Federal and State Government-backed National Rental Affordability Scheme is part of the solution to Australia’s housing shortage. It has been created to:

  • Increase the supply of new affordable rental housing through the construction of approximately 38,000 high quality homes and apartments across Australia by 2016.
  • Reduce rental costs for low-moderate income households by providing affordable private rental properties for Australian families at 20+ percent below the market value rent.
  • Encourage large-scale investment and the innovative delivery of affordable housing.
  • The 2014 Federal Budget does not include any further funding for NRAS beyond the 38,000 incentives currently offered.

More than 1.5 million households were predicted to be eligible for tenancies under the Scheme, providing a large and diverse pool of potential tenants for investors to choose from.


How NRAS incentives work for investors

The Scheme offers financial incentives to businesses, community organisations and private investors who build and rent dwellings for low and moderate income households at 20 percent (or more) below the market rent rate. These incentives, which are available for ten years for each dwelling, comprise two key elements:

  • A Commonwealth Government incentive at the commencement of the Scheme of $6,000 per dwelling, per year, as a refundable tax offset or payment; and
  • A State or Territory Government incentive at the commencement of the Scheme of $2,000 per dwelling, per year, in direct or in kind financial support.

Both incentives are indexed annually on 1 May to CPI (average for eight capital cities). The combined incentive payment is currently $11,114.33 (NRAS 2017/18).

For more information, read our NRAS fact sheets and find out more about the opportunities for investors. Alternatively, discover how we can help you maximise your returns by investing in NRAS properties with Quantum and check out some upcoming NRAS projects.


How NRAS works for tenants

The Government incentives for investors in NRAS properties are dependent on the owner offering the property to low-moderate income households at no less than 20 percent below the normal market rent.

Find out if you’re eligible for an NRAS property and check out our NRAS properties that are currently available for rent.