Have you heard about NRAS? Australia’s National rental affordability Scheme

NRAS Explained

What is NRAS?  National Rental Affordability Scheme

  • NRAS (“National Rental Affordability Scheme”) is a commitment by the Australian Government to stimulate private investment into the affordable sector of the rental housing market.
  • Introduced in 2008 – the initial aim was to create up to 50 000 new dwellings across Australia which can be rented out to tenants who may not be able to afford full market rents.
  • NRAS is NOT a social housing scheme – the tenants have to be in a specific income bracket
  • NRAS allows for generous tax free incentives that are available to the property investor owners of NRAS approved properties
  • NRAS dwellings must be rented at a minimum of 20% below “market rent” (that is why the owner then qualifies for the incentive)
  • NRAS incentives, valued at $11 248 for the current NRAS year (split 75%/25% between Federal and State) payable to the owner, are available up to 30 June 2026. * these Incentives are paid TAX FREE to the owner.

*The property must remain “NRAS-compliant.”  The $11 248 figure is valid for the 2019/2020 NRAS year. Terms and Conditions apply – for further information please refer to https://www.dss.gov.au/housing-support/programs-services/housing/national-rental-affordability-scheme/nras-investors#06


Key Benefits

  • Available to all investors, from “Mum and Dad” to multi-unit “sophisticated” investors
  • Designed to be a “worry free” process: tenant selection and NRAS compliance work is undertaken by the property manager and the approved participant (who manage the compliance)
  • Subsidies are paid once a year – 25% in cash by the State Government, normally during August/September and 75% by the Federal Government as a “tax credit” after the lodgement of a tax return
  • The NRAS Subsidy is a fixed amount per dwelling and is indexed each year in line with movements in the rent component of the Consumer Price Index
  • Annual NRAS subsidies have increased from $ 8 000 in 2008/2009 to the current amount of $ 11 248 for the 2019/2020 NRAS year
  • The total NRAS subsidy is expected to be well in excess of $ 80 000 over the full life of the NRAS qualifying period
  • The NRAS scheme can help the property to be “positively geared”
  • You do not have to remain in the scheme, but if you choose to leave, NRAS benefits will cease
  • You can sell your property at any time during the NRAS period and if sold to another investor, the balance of the NRAS incentive payments will be paid to the new owner


Market Background and Projection


  • Originally earmarked to subsidise 50 000 dwellings across the country, the scheme has now been capped at around 38 000 dwellings and the Government has already allocated the final NRAS places – no more NRAS housing will be made available.  It is therefor an excellent opportunity to invest in these well located modern apartments – already tenanted
  • Taking a longer -term view, the rental and property market will fluctuate but the underlying trend in property values will generally be upwards
  • During the lifespan of a typical NRAS apartment, and ignoring any income generated along the way, capital growth alone should ensure a healthy longer-term return on investment


* Disclaimer:  Returns may fluctuate. There is no guarantee, expressed or implied of the accuracy of  figures and projections in this document.  Outcomes may vary due to changes in market conditions, individual investor circumstances, government regulations and taxes. We recommend independent financial advice is sought prior to making a decision to purchase


IF you are interested in buying one of these sought after apartments – please contact me

Sal Viljoen

0424 187 243

SLP Real Estate

[email protected]