National rental affordability information for non-entity joint venture participants

For income years 2010-11 onwards, an approved participant of a national rental affordability scheme (NRAS) consortium can relinquish their refundable tax offset entitlement to another member of their consortium if ATO ID 2009/146 National Rental Affordability Scheme applies.

The following information will not apply where an approved participant of an NRAS consortium makes an election to relinquish their refundable tax offset entitlement (in circumstances where ATO ID 2009/146 applies). It may continue to be applicable to NRAS participants, to work out any tax obligations before the 2010-11 income year and where an election has not been made by an approved participant to relinquish their refundable tax offset entitlement.

Introduction

ATO Interpretative Decision ATO ID 2009/146 may impact on NRAS investors participating in a non-entity joint venture.

This outlines the tax implications of participating in a non-entity joint venture and clarifies who has an entitlement to an NRAS tax offset.

If you have entered into, or are thinking about entering into, a non-entity joint venture to participate in NRAS, it is important to consider the following:

• Will you have an entitlement to an NRAS tax offset?
• If you do have an entitlement, what is the amount of NRAS tax offset that you can claim?
• If you do have an entitlement, when do you claim an NRAS tax offset?

If you have entered into an arrangement similar to the one outlined in ATO ID 2009/146 and you are concerned that you will not have an entitlement to an NRAS tax offset as expected, see No entitlement to an NRAS tax offset.