National Rental Affordability Scheme (NRAS)
- Introduction
- Calls for applications
- Prospectus
- Legislation
- Interest register and Partnership Facilitators
- Information sessions
- Background
- Key features
- Implementation
Introduction
On Thursday 24 July, the Treasurer the Hon Wayne Swan MP and the Minister for Housing the Hon Tanya Plibersek MP launched the National Rental Affordability Scheme (the Scheme) and announced the first Call for Applications.The Scheme will help increase the supply of affordable rental dwellings by up to 50 000 by 2012, with a further 50 000 to be made available post July 2012, subject to demand. Rent for these properties will be charged at 20 per cent below the market rate for eligible tenants.
Calls for applications
Establishment Phase (1 July 2008 to 30 June 2010)
There will be two calls for applications for incentives in the Establishment Phase. The first call for applications, Round One, is now closed.
Applications for Incentives under Round One of the National Rental Affordability Scheme are currently being assessed. The assessment process for this Round is taking slightly longer than was expected. The Department expects to be in a position to advise applicants of the outcomes of the assessment process by 28 October 2008.
To request copies of the application documentation from Round One call for applications, please email nras@fahcsia.gov.au. National Rental Affordability Scheme Round One questions and answers are available.
As it is not expected that the full 11 000 incentives will be allocated in round one, a second call for applications (Round Two), will be issued in November 2008.
Please note that proposals received in Round One and Round Two which also seek an allocation of incentives for projects in the Expansion Phase will be accepted and assessed at this time.
To be eligible for incentives under the Scheme, applicants will need to meet National Mandatory Requirements and Weighted Criteria.
Expansion Phase (1 July 2010 - 30 June 2012)
The allocation of incentives under the Expansion Phase will be through Round Three with subsequent calls for the allocation of incentives under this phase issued annually. The timing of subsequent calls for applications will be considered following a review of the Establishment Phase. Round Three call for applications will occur in March 2009 for proposals that can deliver dwellings available for rent by June 2012. Any remaining incentives from the Establishment Phase will also be allocated in this round.Prospectus
The National Rental Affordability Scheme Prospectus outlines the details of the Scheme which provides new opportunities for governments, private sector and community organisations to work together to increase the supply of affordable private rental housing for families and individuals across Australia.To order a copy of the Prospectus please call 1800 334 505.
Legislation
The National Rental Affordability Scheme Program Guidelines support the proposed legislative framework for the Scheme. The National Rental Affordability Scheme Bill 2008 and the National Rental Affordability Scheme (Consequential Amendments) Bill 2008, which provide the enabling legislation for the Scheme and the framework to allow refundable tax offsets to be available to a wide range of investors, were introduced into Parliament on 24 September 2008.Most administrative details of the Scheme's operation will be included in regulations to provide the flexibility required to respond to changing circumstances.
An exposure draft of the Regulations will be available on this site in the near future to assist with understanding the operation of the Scheme. No significant change to the legislative framework is anticipated but it is possible that Parliament may make amendments that could impact on the policy and administrative arrangements for the Scheme. If this is the case, the Department will notify applicants of any changes in the proposed legislative framework that may affect their application.
Partnership Facilitators - interest register
Partnership Facilitators have been engaged by the Department of Families, Housing, Community Services and Indigenous Affairs FaHCSIA to support the implementation of the National Rental Affordability Scheme through assisting in the coordination of potential partnership or consortium arrangements between stakeholders interested in participating in the Scheme.| State/ territory |
Contact person | Organisation | Contact number |
|---|---|---|---|
| Queensland | Ian Barnes | MacroPlan Australia | (07) 3010 9249 |
| New South Wales / Australian Capital Territory | Michael Tilt | MacroPlan Australia | (02) 9252 1199 |
| Victoria / Tasmania | David Bruce - lead contact for all MacroPlan activities |
MacroPlan Australia | (03) 9600 0500 |
| Western Australia | David Leszenko | MacroPlan Australia | (08) 9321 8004 |
| South Australia / Northern Territory | Justin Shadiac | SA Department for Families and Communities | (08) 8124 4075 |
| National - aged care sector | Lesley Dredge Roland Naufal |
Aged and Community Services Australia | (03) 9686 3460 |
| National - community housing sector | Carol Croce | Community Housing Federation of Australia | (02) 6232 5043 |
Alternatively, an interest register has been established to assist organisations interested in participating in the Scheme but who may need support to identify possible partners. Interested organisations can register their interest by emailing nras@fahcsia.gov.au and their details will be forwarded to the relevant Partnership Facilitator.
Role of Partnership Facilitators
Partnership Facilitators have been engaged to bring together stakeholders that might be interested in participating in the National Rental Affordability Scheme. They will make details of interested organisations available to other organisations who may be seeking a partner, where the organisations involved are willing to share their information. They may, in some cases, be available to attend initial meetings of newly forming consortia or partnerships.Partnership Facilitators will not provide:
- advice to consortia or partnerships on the commercial arrangements between members;
- advice on the quality of proposals; and
- interpretation of the National Rental Affordability Scheme documentation.
Important information for interested organisations
Partnership Facilitators are a free service available to organisations that are interested in participating in the National Rental Affordability Scheme. They will provide support where they are able.There has been great demand for their services.
This may mean that it could take a few weeks before the Partnership Facilitator is able to get back to interested organisations to discuss their situations.It is important that organisations note that there will be a number of opportunities to participate in the National Rental Affordability Scheme over the next four years.
This Round One call for applications is the first of three rounds for 2008-09. Round Two will open in November 2008 and Round Three will open in March 2009. Subsequent rounds may be opened annually from August 2009 where there are National Rental Incentives still available to be allocated.
Contact details of all interested organisations will be retained with the intention of providing facilitation support in future rounds.
Disclaimer
Individuals undertaking the role of Partnership Facilitator are not employees or agents of the Commonwealth of Australia as represented by the Department of Families, Housing, Community Services and Indigenous Affairs, or any State or Territory Government. Views and recommendations that may be proposed by Partnership Facilitators do not necessarily reflect the view of the Commonwealth, State or Territory Governments, or indicate a commitment to a particular course of action. Additionally, the Commonwealth, State and Territory Governments disclaim all liability to any person in respect of any thing, and of the consequences of any thing, done or omitted to be done by such person in reliance, whether wholly or partially, upon any information presented by the Partnership Facilitator.Information Sessions
The Department of Families, Housing, Community Services and Indigenous Affairs held information sessions for interested parties, such as financial institutions, developers and land holders, Local Governments, not for profit groups, property managers and housing groups from 1 to 15 August 2008.The presentation given by FaHCSIA at the NRAS Round One Information Sessions is now available.
National Rental Affordability Scheme - PDF [707kB]
This document contains a summary of the information on this page. If you are unable to open this file please call 1800 334 505.
For State and Territory presentations please see the relevant State or Territory Government website.
Background
Governments, the business sector and community organisations recognise that housing affordability is now an issue of significant community concern. The growing cost of housing is having a serious impact on the ability of many Australians to meet their financial commitments.The National Rental Affordability Scheme is a 2007 Federal Election Commitment. The Australian Government will provide funding to:
- increase the supply of affordable rental dwellings;
- reduce rental costs for low to moderate income households; and
- encourage large scale investment and innovative delivery of affordable housing.
The National Rental Affordability Scheme offers annual incentives for a period of ten years. The two key elements are:
- A Commonwealth Government incentive of $6 000 per dwelling per year refundable tax offset or payment; and
- A State or Territory Government incentive of $2 000 per dwelling per year in direct or in kind financial support.
The Scheme will help stimulate supply of up to 50 000 new affordable rental dwellings across Australia by June 2012. If market demand remains strong, a further 50 000 incentives for new affordable rental dwellings will be available from July 2012 onwards.
Key features
The Scheme offers an incentive to providers of new dwellings on the condition that they are rented to low and moderate income households at least 20 per cent below-market rates.The incentive comprises a Commonwealth Government contribution of $6 000 per dwelling per year in the form of a refundable tax offset or payment, and a State or Territory Government contribution valued at $2 000 per dwelling per year in the form of financial and/or other support. It will be provided annually for ten years on condition that throughout that period the dwelling is rented to eligible low and moderate income households.
The Scheme is designed to pool significant resources from a range of participants including financial institutions, non-profit organisations and local government which, when combined with the incentives from the Scheme, will increase the supply of lower-rent housing. These resources could include loans; equity investments; capital grants by Commonwealth, State and Territory or Local Governments; donations by charities; free or discounted land by churches; or contributions by developers in accordance with planning requirements.
The tenant eligibility criteria will ensure the Scheme is open to families on low and moderate incomes, individuals who are looking to rent a property for the first time, and singles in private or public rental accommodation, including people working or undertaking study or training.
Implementation
The Department of Families, Housing, Community Services and Indigenous Affairs is responsible for the implementation and ongoing management of the National Rental Affordability Scheme, in consultation with the Australian Taxation Office. The Commonwealth is working with State and Territory Governments, large scale investors and not-for-profit housing providers to implement the Scheme, which commenced from 1 July 2008.On 27 June 2008, the Minister for Housing released the National Mandatory Requirements and Weighted Criteria for the Scheme and on 24 July 2008 released the National Rental Affordability Scheme Prospectus.