NRAS axed in budget
The government announced in the budget on 13 May that it is not proceeding with Round 5 of National Rental Affordability Scheme. This means that no incentives will be allocated for Round 5.
There are no funds for future rounds at this time and the money that was set aside for Round 5 will be returned to the budget.
Despite this, the government says it remains committed to addressing the undersupply of affordable housing. NRAS will continue to contribute over $1 billion to housing supply and affordability over the next four years until 30 June 2018.
According to the government, the NRAS scheme has been slow in delivering and has failed to achieve its delivery targets despite ongoing government funding.
Incentives already allocated through the scheme will continue to be paid for up to ten years as long as eligibility requirements are met and buildings in the construction pipeline are built according to agreed timeframes and in agreed locations. The government will be improving the administration of the scheme by imposing tighter conditions on the delivery of dwellings within agreed timeframes. Participants will be notified of any changes to delivery conditions.
If you are an investor in dwellings that are currently rented as part of the scheme, this decision will not impact your existing investment in the scheme. For dwellings not yet delivered, you should discuss the progress of the project with your approved participant.
