The National Rental Affordability Scheme (‘NRAS’ or ‘the Scheme’) provides investors with NRAS tax free incentive payments for investing in affordable housing. NRAS is an Australian Government affordable housing initiative. The Scheme commenced on 1 July 2008. It is delivered in partnership with state and territory governments.
Summary of NRAS:
NRAS homes are not social housing. NRAS properties are owned predominantly by mum and dad investors. They are rented as affordable private dwellings. All rental property costs are paid by the owner, as is the case with a normal rental property. The NRAS Scheme will conclude in 2026. For detailed government reports about the Scheme CLICK HERE
The NRAS Year runs from 1st of May to 30th April each year. It is offset from the financial year by two months. The Federal Government contributes 75% of the National Rental Incentive (NRI) for NRAS each year. The other 25% of the NRI is contributed by the State and Territory Governments.
The NRI is indexed annually to the CPI. It is $11,270.59 for the 2020 – 2021 NRAS Year.
To view the Australian Government NRAS Incentive 2021 indexation fact sheet, plus all prior year incentive payments, please CLICK HERE
Incentive values have reduced for the 2021-22 NRAS year from the prior year and are listed below.
|Australian Government Contribution||$8,343.05|
The Federal Government portion is claimed through your income tax return by submitting a Refundable Tax Offset (RTO). It is paid directly to you by the Australian Taxation Office (ATO). The NRAS Approved Participant is responsible for supplying you with your NRAS RTO Certificate. The Federal Government issued RTO (Refundable Tax Offset) certificates to your NRAS Participant by late July in past years. The RTO Certificates are then forwarded to you (the NRAS Investor). If you would like more information about the timing of payment for claims in the current NRAS year, please contact your NRAS Approved Participant, or contact Affinity Property for further information.
In Queensland, the State Government pays the state component of NRI to the NRAS participant. This payment is made following the issue of the Federal Government RTO Certificate. The State Government funds are then deposited into your bank account.
NRAS Tax Free Incentive payments may be paid on a pro rata basis where:
Affinity Property has more than 12 years’ experience managing and selling NRAS properties. We are one of Australia’s largest accredited NRAS Property Managers, and we have expertise working across multiple NRAS models.
We can advise you: which NRAS models are good; NRAS models you should avoid; and, how to set up your NRAS property management arrangements to best safeguard your financial and legal interests.
Don’t Take Our Word For It
At Affinity we understand the importance of unbiased information, education and high-quality property advice – our clients believe this is what sets us apart from other real estate agents. We manage a wide range of quality homes, duplexes, townhouses, units and retirement living. Our clients include first time investors through to experienced landlords who own large property portfolios.
Our team is 100% focused on providing you with outstanding service and assistance.
Need Help With Your NRAS Property?
NRAS Landlords entrust us to reliably manage and sell their properties for greater profitability and less worries.
We get the highest possible rent from quality tenants with many properties leased within 48 hours!
We also consistently sell NRAS properties at prices significantly above the average appraisal.
Our comprehensive 100% Service Guarantee for Landlords ensures you get the best outcome for your investment property.
Like to know how much your NRAS property is worth right now? Contact us today.
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We’ll advise you how you can achieve the best price whether you are selling or leasing your property.