NRAS - What does it mean for YOU!

 

The National Rental Affordability Scheme (NRAS) is a long term commitment by the Australian Government to investors prepared to build affordable rental housing.

NRAS seeks to address the shortage of affordable rental housing by offering tax-free financial incentives to the business sector, private investor and not for profit housing providers to build and rent affordable dwellings.

NRAS is an Australian Government initiative to:

  1. stimulate the supply of up to 50,000 new affordable rental dwellings in Australia
  2. reduce rental costs for low and moderate income households
  3. encourage large scale investment and innovative management of affordable housing.


The incentive, payable either as a grant or refundable tax offset, is paid annually for up to 10 years. The investor must:

  1. rent dwellings to eligible tenants
  2. charge rent at least 20% below the market rent
  3. provide the dwelling for participation in the scheme for 10 years.

When Do you receve the Funds?

1. $7486.00 Paid each July by the Federal Goverment as a tax off set against income

2. $2495.00 Paid each September by the State Governement

 


Federal & State Government Tax Credits

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  •  
  • Federal & State Government Tax Credits·

* You will receive $9,524 pa This rises to $9,981 on the 1st May 2012 ... 4% increase!

* equates to over $95,000

* over 10 Years!

Government Backed

 

 

 

 

 

 

 

BENIFITS TO YOU

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* Tax deductions greater on new property.

* Tax deductions on property management.

* Tax deductions on insurance.

* Tax deductions on interest expenses.

* NRAS Government incentives are ‘Tax Free’.

* Improved net ‘rental yield’ with NRAS, but regularly

* higher negative gearing due to tax free subsidy.

* Hassle free property management

 

 

 

 

 

 

NRAS INCREASE RETURNS

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TENANTS

Leader Property Group will co-ordinate property management to be undertaken by NRAS approved Property Managers. Tenants are generally key workers such as police, nurses & teachers.

For example a couple with 2 children earning an income between $86,000 &· $108,000 per annum would be eligible to tenant these properties.

 

NRAS is not a public housing program; it is a tax incentive to induce more private investment in the lower price range of the residential construction market. Approximately 1.5 million households are currently eligible to rent NRAS properties, ensuring a strong ongoing demand for NRAS properties and a large pool for investors to choose from.