Search for
	In: ato.gov.au Businesses section only	Advanced search Search tips

What do you want to do?
Lodge a business activity statement (BAS)
Lodge another statement or return
Pay staff
Apply for an ABN, TFN or other registration
Make a tax payment
Find rates, calculators and tools
Find a form or publication
Fix a problem
Get help

Your business situation
Where do I start?
Record keeping & invoicing
Income tax
Expenses & deductions
Employing people
Buying & selling goods and services
Selling real estate, shares or your business
Overseas dealings
Your industry or business type

Tax topics A-Z
A-C
D-E
F-G
H-L
M-R
S-Z
List all

Law, rulings & policy
Legal Database
Law
Rulings & ATO view
ATO policy & guidelines

Compliance issues
Our Compliance program
How we make it easier for you to comply
Tax planning & schemes
Tax evasion & crime
Objections, amendments & reviews

Community consultation
About consultation
Forums
Excise

News and seminars
Communicating with large businesses
Non-profit news service
Speakers and seminars
Activity statement updates
SME Communicator
Workforce education news
Back to business bulletins

National rental affordability scheme - refundable tax offset and other taxation issues

Background

The national rental affordability scheme (NRAS) is designed to encourage large-scale investment in affordable housing. The NRAS offers tax and cash incentives to providers of new dwellings on the condition that they are rented to low- and moderate-income households at 20% below market rates.

The NRAS offers annual incentives for a period of 10 years. The incentive comprises:

a Federal Government contribution in the form of a refundable tax offset or payment to the value of $7,486 per dwelling per year in 2012-13
a state or territory contribution in the form of direct financial support or an in-kind contribution to the value of at least $2,495 per dwelling per year in 2012-13.

The incentive will be indexed in line with the rental component of the consumer price index.

The Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) is responsible for administering and implementing the scheme.

For more information about the national rental affordability scheme, visit the FaHCSIA website at www.fahcsia.gov.au/nras

Last Modified: Friday, 28 September 2012

Table of contents

When did NRAS start?

What NRAS incentives are provided through the tax system?

What is a refundable tax offset?

Who is entitled to the NRAS tax offset in their annual tax return?

Partnerships and trust beneficiaries who indirectly derive NRAS rent from a rental dwelling

Dwelling owners investing under a head lease agreement

Claiming the NRAS refundable tax offset

Amendments to NRAS tax offset entitlements

State and territory contributions

Capital gains tax

Does participating in NRAS impact on charitable status for tax purposes?

Calculating the NRAS tax offset

Examples of arrangements participating in NRAS

Election to relinquish your entitlement to the NRAS tax offset

More information

Give us your feedback

© Australian Taxation Office for the Commonwealth of Australia