User:Amir arif two reinle

national rental affordability scheme Scheme or NRAS a Federal and State Government backed incentive scheme launched in 2008 which is designed to:

   encourage investors to develop additional new houses for the rental market.
   provide an affordable rent program for average Australian wage earners as individuals, couples and families. It is not social housing.
   yield higher than usual returns for investors in the residential property market.
   increase the number of rental dwellings built through the stimulation of demand and investment, while supporting the building industry and related jobs and the Australian economy.

The government aims to achieve this by providing a tax incentive for investors in NRAS property in return for the property being rented at a discounted rate. NRAS property is not housing commission or social housing. NRAS properties are rented to private individuals with incomes of up to $100,000 pa.

In addition to the normal tax incentives for negatively geared real estate investments, over $9,000 in tax credits are available each year for ten years to investors. The trade off is that the property must be rented at a discount to the market rate for an identical property. In Queensland for example that discount is a minimum of 20%. So for a house that would otherwise have rented for $400 per week, the owner gets $320 per week. In exchange for losing $80 per week in rent or $4,160 per year, the owner receives tax credits of over $9,000.

There are strict guidelines for property to qualify under the NRAS scheme. It must be close to transport, schools, shops etc making NRAS property desirable for tenants and property investors.

More information on the National Rental Affordability Scheme is available