NRAS(National Rental Affordability Scheme) incentive
The NRAS scheme assessment process was not finished and no further work will be undertaken. As on 13 Jun 2014.
Incentives already allocated through the scheme will continue to be paid for up to ten years as long as eligibility requirements are met and homes in the construction pipeline are built according to agreed timeframes and in agreed locations.
The Government will be improving the administration of the scheme by imposing tighter conditions on the delivery of dwellings within agreed timeframes. Participants will be notified of any changes to delivery conditions.
The original scheme
The NRAS Tax Incentive is $9,981 [2012-2013]. This will be indexed from 1 st May each year. Majority of this comes from the Commonwealth as a tax offset and other part comes from the State as a cash transfer that is non-taxable.
The annual Incentive is available to compliant dwellings for a maximum of 10 years.
The Commonwealth Tax Incentive is payable as a Refundable Tax Offset, this means it reduces your tax bill. If you do not pay enough tax you can receive it as a tax refund. The States contribution is non assailable and non exempt for tax purposes.
In laypersons terms these Incentives are Tax-Free.
The Incentive is available to individuals, corporations and superannuation funds.
The NRAS Consortium should arrangement to ensure that the full value of the Incentive is received by its investor-partners. Its agreement is compliant with NRAS Regulations and passes all NRAS entitlements in full to investors.
For further information read