Although it seems like it may only benefit renters, this isn't true. It's also a great option for anyone looking to make a move into property investment. The properties are available nationally and through various projects including units, townhouses and villas.
The properties are no different to the ones next door to you that you would otherwise purchase. This Government scheme was created to reduce the rent payable by "key workers" within the community, such as police officers, nurses, childcare workers, ambulance service workers, paramedics, teachers, fire-fighters and other critical community members. The policy can also assist other eligible tenants such as single parents, apprentices, students, pensioners and retirees as well as family members including brothers, sisters, children, parents and people with disabilities.
The biggest incentive is related to tax. The annual NRAS incentive is paid to you annually for 10 years. Investors should undertake their own investigations and seek independent financial, legal and taxation advice to ensure that they are satisfied that investing in NRAS is the right investment for their individual circumstances. In 17 November , the Department implemented amendments to the NRAS regulations to increase the protections afforded to investors within the Scheme.
The amendments introduced a power for the Secretary of the Department of Social Services or her Delegate to transfer an allocation attached to an approved rental dwelling from one approved participant to another, if certain grounds exist.
These grounds include, but are not limited to, instances where approved participants are not passing on the NRAS incentive to the NRAS investor where there is a contractual arrangement to do so within a reasonable time of receiving the incentive, or where the actions of an approved participant have contravened a consumer protection law in relation to the NRAS allocation.
The transfer can be initiated by the Department or at the request of an investor. In November the Regulations were further amended to strengthen investor protections within the Scheme and to improve administrative functions of the Department under the Scheme. More information on the NRAS Regulation amendments can be found at the information sheets for investors and approved participants.
While the amendments to NRAS Regulations do increase protections for investors within the Scheme the amendments do not extend to interfering in private, contractual arrangements between approved participants and third parties such as investors or property managers. NRAS homes must be rented to eligible tenants at a rate that is at 80 per cent or less of the market value rent and comply with all conditions of allocation in order to be eligible for the NRAS incentive annually.
The NRAS Incentive is indexed according to movements in the Rents component of the Housing Group Consumer Price Index for the year, December quarter to December quarter as at 1 March, using the weighted average rate of eight capital cities housing component, and is effective from 1 May.
However, a cash payment can be made if the approved participant receiving the NRAS incentive is an endorsed charitable institution. The current incentive payments are available on the NRAS incentive indexation page. NRAS rental homes are available to low and moderate income Australians — people who may find it hard to pay market rental prices.
The eligibility of tenants are tested against household income thresholds which differ depending on the household composition. The Department requires all persons who are tenants of an approved rental dwelling to have their income included as a member of the one household, in accordance with the income limits. New NRAS dwellings entered the Scheme up to 30 June and will continue to be rented under the scheme for up to 10 years from the date of commencement. As there is considerable demand for these dwellings the Australian Government is unable to guarantee that any tenant will be able to rent a dwelling developed under the Scheme.
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