National Rental Affordability Scheme's fifth round announced

The Australian Government, in partnership with the States and Territories, has announced a new round of

National Rental Affordability Scheme (NRAS) allocations.

The scheme is a long term commitment by multiple levels of government to invest in affordable rental housing by offering financial incentives to investors of residential dwellings on the basis that they are rented to people on low to moderate incomes at a discount of at least 20 per cent below market rent.

The Federal Government has already allocated

approximately 40,000 NRAS entitlements with approximately 11,000 NRAS delivered, as of December 2012 (above).

According to the Federal Minister for Housing and Homelessness Mark Butler, NRAS is an important strategy to assist Australians who are vulnerable to the rising cost of housing.

“We know that housing affordability is a concern for many families right across Australia and we’re investing heavily to address that concern,” Mr Butler said.

“Already, more than 12,000 homes have been built under the National Rental Affordability Scheme, with close to 28,000 under way,” Mr Butler said.

“This latest round of incentive allocations will aim to deliver the last 10,000 homes, to reach our goal of 50,000 new more affordable rental homes by 30 June 2016.”

Round Five allocations will comprise two phases:

•  will seek applications for up to 1,000 homes to be completed by June 2014 and available for rent by end December 2014. The applications open on 18 April 2013 and close on 22 May 2013.

•  will seek applications for up to 10,000 new affordable rental homes that are available for rent in financial year 2016. The applications open on 7 May 2013 and close on 6 August 2013.