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National Rental Affordability Scheme to Benefit Renters

In October, the federal government announced the outcome of the latest round of the National Rental Affordability Scheme (‘NRAS’). The NRAS is aimed at delivering affordable rental housing to low and moderate income earners over the course of a decade. In this article, we look at the NRAS and its implications for renters and investors.

At a Glance: The National Rental Affordability Scheme

The NRAS began running in 2008, when the federal government incorporated it as a major component in its $3.7 billion housing package. The main goal of the scheme is to boost rental housing stocks for low to medium income earners.  In order to deliver this goal, the State and Federal governments have incentivized investors to rent out approved new properties at a discounted rent by offering them a Tax-Free payment each year for 10 years. This property investment option is suitable for many investors in relation to many approved properties all around Australia.

Under the NRAS scheme:

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