National Rental Affordability Scheme (NRAS)
- Introduction
- Calls for applications
- Legislation
- Partnership Facilitators
- Information sessions
- Background
- 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 (NRAS) and announced the first call for applications.The National Rental Affordability 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.
National Rental Affordability Scheme - deferring feedback on Round One
Decisions for National Rental Affordability Scheme Round One applications have not yet been made. Decisions will not be able to be finalised until the National Rental Affordability Scheme bills currently before the Parliament have passed and the National Rental Affordability Scheme regulations proclaimed.In these circumstances the Department has decided that it cannot provide feedback to applicants on likely outcomes. This means that Round One applicants will not be advised of their assessment as there is still scope for change that may impact on the applications or the final assessment.
The National Rental Affordability Scheme Bill 2008 and the National Rental Affordability Scheme (Consequential Amendments) Bill 2008 are currently before Parliament. A notice of amendment to the National Rental Affordability Scheme Bill was proposed and rejected in the House of Representatives. The Bills have been referred to the Senate Community Affairs Committee for review and the Bills are yet to be considered in the Senate.
Round Two call for applications has also been deferred. It was proposed that the second call for applications for National Rental Affordability Scheme would commence on Monday 10 November 2008. However, making a further call for applications before resolving the completion of the first round would be confusing and might even prejudice the interests of those seeking to participate in National Rental Affordability Scheme.
The Minister has decided that until Round One applicants are advised and provided with individual feedback, it would not be reasonable to open applications for Round Two particularly given the principle that all communication between potential applicants and the Department occurs through a single point of contact (the Helpdesk), once the application process opens. There is also a strong preference for the Scheme to be established in law before we seek further effort from potential applicants.
We anticipate a quick turn around time on announcing the Incentives and providing feedback to individuals, once National Rental Affordability Scheme is established. We plan on advertising for Round Two call for applications within two weeks after National Rental Affordability Scheme is established through legislation and regulations.
We apologise for the delays on behalf of Minister Plibersek, but believe it is in the best interests of everyone concerned. If you have any questions please call the National Rental Affordability Scheme Helpdesk on 1800 334 505.
To request copies of the application documentation from Round One call for applications, please email nras@fahcsia.gov.au or contact the call centre on 1800 334 505
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 once the enabling legislation has been proclaimed.
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 National Rental Affordability 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.Legislation
The National Rental Affordability Scheme Program Guidelines support the proposed legislative framework for the National Rental Affordability 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 National Rental Affordability Scheme Regulations 2008 was released on 14 October 2008.- National Rental Affordability Scheme Bill 2008
- National Rental Affordability Scheme (Consequential Amendments) Bill 2008
- Exposure draft National Rental Affordability Scheme Regulations 2008
It is possible that Parliament may make amendments that could impact on the policy and administrative arrangements for the National Rental Affordability 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
Partnership Facilitators were contracted by the Australian Government for the Round One call for applications only.- The Minister for Housing announced in September that the Australian Government will provide approximately $1.7million over the next two years to fund products, activities, resources and tools through the NRAS Capacity Building Strategy which includes:
- The Strategy's tools and products will be available to any interested applicants and partners in NRAS through a Business Development Clearinghouse. The Government will engage the Community Housing Federation of Australia to deliver a series of workshops for those interested in participating in NRAS, and to establish and manage the Clearinghouse.
- The workshops will provide investors with resources and products, such as legal documents, financial planning modules, standard partnership agreements and partnership development kits.
- The Clearinghouse will provide access to resources and information on NRAS, including information on individuals and organisations with proven expertise in affordable housing. It will also provide an opportunity for participants and other interested parties to share information and to link with organisations seeking partners.
Information Sessions
Round One
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 the Department at the National Rental Affordability Scheme Round One Information Sessions is now available.
National Rental Affordability Scheme - PDF [707kB]
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 incentive will be provided annually on the condition that throughout that the ten year period the dwelling is rented to eligible low and moderate income households.
The National Rental Affordability 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.
The National Rental Affordability 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 National Rental Affordability 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 National Rental Affordability 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 Natinal Rental Affordability Scheme.