About the Scheme

The National Rental Affordability Scheme (“NRAS”) was introduced in 2008 in response to the growing shortage of affordable rental dwellings in Australia. NRAS is financially supported by the Federal and State Governments and is managed and regulated under the legislative framework provided through the National Rental Affordability Scheme Act 2008 (NRAS legislation).

The aim of the Scheme is to:

    1. Increase the supply of affordable rental dwellings;
    2. Encourage private sector investment in affordable housing; and
    3. Reduce rental costs for low to moderate income earners.

Increase the supply of affordable rental dwellings

  • The Government awarded 36,807 NRAS incentives to 133 NRAS approved participants Australia wide.
    • As at 30 June 2017; 34,173 NRAS dwellings have been delivered into the Scheme with a further 2,634 NRAS dwellings yet to be delivered. (Source: NRAS Quarterly Performance Reporting for June 2017)
  • In Victoria there are:
    • 18 Approved NRAS Participants, including Loddon Mallee Housing Services Limited t/as Haven; Home, Safe (“HHS”).
    • As at 30 June 2017; 5,895 NRAS dwellings have been delivered into the Scheme with a further 211 NRAS dwellings yet to be delivered. (Source: NRAS Quarterly Performance Reporting for June 2017)
  • The Scheme is administered by the Government through the Department of Social Services (“DSS”).
  • The Government works with NRAS Approved Participants to administer the compliance, reporting and payment of the NRAS incentive for each property that meets the condition as prescribed under NRAS legislation.
  • NRAS approved Participants include not-for profit community housing providers and universities through to ASX listed property companies.

Encouraging Private Sector Investment

  • NRAS provides an investor with an annual incentive for up to 10 years.
  • The current NRAS Incentive amount is $11,114.33 (2017/18 year)
  • The NRAS Incentive is received annually in arrears in two components:
    1. Federal component paid as a Refundable tax offset (“RTO”) or Cash payment (currently $8,335.75)
    2. State component paid as a Cash payment (currently $2,778.58)
    • The NRAS Incentive amount is fixed per dwelling and indexed annually on 1 May.
    • To receive the NRAS Incentive, an investor must:
        1. Purchase an NRAS approved property and enter into an agreement, with the NRAS Participant for the dwelling;
        2. Lease the property at a rental of no more than 80% of market value rent to an eligible tenant.
        3. Ensure the property does not exceed the vacancy provisions and complies with all other conditions as prescribed under NRAS legislation.

      Further details of the NRAS scheme can be found on the Australian Government Department of Social Services website: dss.gov.au/our-responsibilities/housing-support/programmes-services/national-rental-affordability-scheme

       

    Reducing Rental Costs for eligible tenants

    • To rent under NRAS you must be an “eligible tenant”.
    • Eligibility is based on the gross annual household income prior to entering into a lease; eligibility is re-assessed annually for continuing tenancies.
    • “Eligible tenants” receive the benefits of a discounted rent of at least 20% below market value rent.
    • The provisions of the Residential Tenancy Act apply to NRAS tenants.
    • Income limits are set by the Government and is indexed annually on 1 May. Income limits for 2017/18 are noted in the table below:

    Household composition

    Initial household income limit ($)

    Existing tenant income limit ($)*

    One adult

    49,547

    61,934

    Two adults

    68,501

    85,627

    Three adults

    87,455

    109,319

    Four adults

    106,409

    133,012

    Sole parent with one child

    68,548

    85,685

    Sole parent with two children

    84,983

    106,229

    Sole parent with three children

    101,418

    126,773

    Couple with one child

    84,936

    106,170

    Couple with two children

    101,371

    126,714

    Couple with three children

    117,806

    147,258

     

      About Loddon Mallee Housing Services Limited.

      Loddon Mallee Services Limited t/as Haven; Home, Safe (“HHS”) is an Affordable Housing Association and the second largest Approved Participant under the National Rental Affordability Scheme in Victoria. HHS is responsible for managing the compliance obligations for over 1,100 NRAS dwellings on behalf of the investor, to the Government authorities.

      Contact Information

      Investors
      T: 03 9479 0700 (select option 3)
      E: nrasadmin@hhs.org.au

      Property Managers
      T: 03 9479 0700 (select option 3)
      E: nrasapplications@hhs.org.au