NRAS Frequently Asked Questions - answering common questions about NRAS

Frequently Asked Questions about NRAS?

FAQ about NRAS?

The NRAS program (National Rental Affordability Scheme) is designed to stimulate the building of rental homes in growth areas to satisfy a high demand for reasonably priced rental property by middle income Australian families. In this FAQ or frequently asked questions, we explain the facts and dispel any misunderstandings.

Q: Can anyone invest in NRAS properties?

A: Yes. NRAS is designed to be attractive to the Australian property investor, subject of course to being able to get finance. You should discuss any the suitability of any investment with an advisor, taking into consideration your equity and income, before you make a committment. Access Commercial Transactions can guide to a suitable expert if you do not have anyone to refer to.

Q: Is NRAS just another name for privately funded housing commission properties?

A: No. It is important to distinguish this program from the Federal Government "Social Housing Program". This is NOT part of that program and attracts totally different tenants. The National Rental Affordability Scheme is designed to address the housing affordability crisis by increasing the supply of private rental housing. A couple with three children can earn $100,000 pa and still qualify to rent.

Q: Are the NRAS scheme incentives tax free?

A: Yes. The incentives are paid as a refundable tax offset this means it reduces your tax bill or if you do not pay enough tax you can receive it as a tax refund. The States contribution is 'non assessable and exempt' for tax purposes. That means if you pay less tax than the offset amount you receive it as a refund.

Q: What happens when the investor lodges their tax return?

A: When the property owner lodges their tax return the incentive is used as a tax offset. This can reduce the overall tax payable or can be received as cash refund if there is no tax debt for the year.

Q: When does the NRAS Tax Free incentive contribution actually get paid?

A: Once the Department is satisfied that NRAS conditions have been met, NRAS investors are provided with their annual tax offset certificate for their NRAS property investments. The NRAS year is from 1 May until 30 April each year. Payments are usually made by the Australian Government in July and by the states/territories around September, following the end of each NRAS year.

Q: Does the Australian Government back the incentive?

A: Yes - The Aust. Government is committed to paying the annual NRAS incentive for approved dwellings.

Q: Who determines the 20% discount rental rate?

A: Independent registered and qualified valuers. They determine what the market rent is for years 1, 4 and 7. A 'desk top' valuation is used for the other years.

Q: Can I sell my NRAS property or remove it from the Scheme and rent it at market rates?

A: Yes

Q: Can I buy more than one property?

A: Yes, we can help you with a strategy if you would like to do so.

Q: Can I sell the property at any time?

A: Yes and the NRAS entitlements goes with the property on what time is left of the 10 years.

Q: When do the NRAS incentives begin?

A: When the tenant moves in and is pro-rated for the remainder of the period until 30 April.

Q: What happens at the end of the 10 years?

A: You can sell or keep the property and the market rent returns to the normal rent.

Q: Where can I find out more?

A: Watch the video webinar at NRAS webinar page and contact us using the form for information that is specific to your circumstances.

For more information call us 1300 NRAS AU - 1300 67 27 28

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