National Rental Affordability Scheme - technical paper released

The National Rental Affordability Scheme is due to commence on 1 July 2008. The Government has released a Technical Discussion Paper on the planned operation of the National Rental Affordability Scheme (NRAS).

The Technical Paper outlines the key features of the Scheme including tenant eligibility, roles for all levels of Government and potential participants in the Scheme and the assessment criteria for tenders.

The Scheme will provide incentives to institutional investors to build 50,000 affordable rental properties by 2012. If market demand remains strong the Government will deliver a further 50,000 incentives from 2012 onwards.

The National Rental Affordability Scheme offers annual incentives for a period of ten years. The two key elements are:

• A Commonwealth incentive of $6,000 per year refundable tax offset or grant; and
• A State or Territory incentive of $2,000 per year in direct or in kind financial support.

Submissions close on 31 May 2008.