The National Rental Affordability Scheme is an Australian
Government initiative to stimulate the supply of up to 50,000 new
affordable rental dwellings at a cost of $623 million over the next
The National Rental Affordability Scheme will be implemented in
1) The establishment phase will be run from July 2008 to June
2010 and provides for the allocation of 11,000 National Rental
Incentives (NRI's); and
2) The expansion phase will be run from July 2010 to June 2012
and provides for the allocation of 39,000 NRI's.
Generous tax offsets and incentives come from two sources for
those willing to deliver the scheme, namely the Commonwealth and
State Government. Those participating in round one of the NRAS were
bestowed a refundable tax offset of $6,000 and further financial
contribution of $2,000 and a waiving of CGT consequences from
receipt of incentives provided, for each dwelling they made
available at a 20% discount to market rate for the benefit of low
and moderate income households targeted by the scheme.
There are five Assessment Criteria which applicants must address
in order to qualify for National Rental Incentives under the
Scheme. These Criteria are:
There is a demonstrated need for the Proposal
The Proposal addresses Priority Areas of Interest
The Proposal delivers accessibility and sustainability
The Consortium or Organisation has demonstrated capacity and
The Proposal is financial viable
Application to participate in the NRAS must be submitted between
the opening and closing dates for each of the rounds listed
Round 1 – Establishment phase: Now closed.
2,800 incentives were offered.
Round 2 – Establishment phase: Closes 27 March
2009. 8,200 offers to be made.
Round 3 – Expansion phase: Opens early 2009/10
financial year. 39,000 offers to be made.
It has also been suggested that another 50,000 NRI's may be
issued, subject to demand, after 2012 thus creating a fourth round
to further implement the expansion phase.
The Commonwealth Government will be holding various information
session about the NRAS and will explore potential funding and
operational scenarios for the Scheme. The Melbourne session is on 3
February 2009 at the State Library of Victoria from 10am to12 noon.
Enrolment is required by emailing email@example.com
Applications for allocations of National Rental Incentives
available under the Scheme need to comply with mandatory
requirements and guidelines which apply to each round of
applications and the year of the Scheme's operation.
Mandatory requirements include:
Dwellings to be rented to 'eligible tenants'.
Dwellings will be rented for a period of 10 years.
Dwellings will be rented at a rate that is at least 20 percent
below the market rate.
Dwellings must either:
Not have been lived in as a residence; or
Not have been lived in as a residence since having been made
fit for occupancy where otherwise the dwelling was recognised as
being uninhabitable; or
If it has been converted to create additional residences, then
a part of the dwelling or building that is capable of being lived
in as a separate residence must not have been lived in as a
Dwellings will comply with State, Territory and local
government planning and building codes and requirements.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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