National rental affordability information for non-entity joint venture participants

Calculating your entitlement

If you are a party to a non-entity joint venture and you have an entitlement to an NRAS tax offset, you will need to calculate the amount of the NRAS tax offset that you are entitled to claim.

To work out the amount of NRAS tax offset you are entitled to claim refer to the following steps:

Step	Action
1	The certificate issued by the Housing Secretary to the non-entity joint venture states the amount of NRAS tax offset in respect of each rental dwelling. Identify the NRAS tax offset for the rental dwelling from which you have derived NRAS rent.
2	Divide the amount of NRAS rent derived by you from the dwelling for the income year by the total NRAS rent derived from that rental dwelling for the income year. If you were the only one deriving rent from this dwelling, the answer is 1.
3	Multiply the amount at Step 1 by the amount you worked out under Step 2. The result is the amount of NRAS tax offset you are entitled to for that rental dwelling.
4	If you have derived NRAS rent in respect of more than one rental dwelling, repeat Steps 1-3 for each rental dwelling.
5	Add the amounts worked out at Step 3 for each rental dwelling you have derived NRAS rent from. This is the amount of NRAS tax offset you are entitled to claim.
6	Claim the amount at Step 5 in your tax return. For more information on where in your tax return to include your entitlement to the NRAS tax offset, refer to 'Claiming the NRAS refundable tax offset', which is found in National rental affordability scheme - refundable tax offset and other taxation issues.

Example

Lee is a party to a non-entity joint venture participating in the NRAS and owns two properties that have received an allocation. Lee owns one of these properties, 2 Lake Drive, outright. The second property, 42 Hitchhiker Cres, Lee owns jointly (50/50) with his wife.

The two properties are rented to eligible NRAS tenants. Throughout the income year 1 July 2009 to 30 June 2010 $13,000 of NRAS rent is derived from 2 Lake Drive and $20,800 NRAS rent is derived from 42 Hitchhiker Cres.

On 28 June 2010, the Housing Secretary issues the non-entity joint venture with a certificate for the NRAS year 1 May 2009 to 30 April 2010. The non-entity joint venture manager provides Lee with a copy of the certificate. The total NRAS tax offset available for all the properties to the non-entity joint venture is $580,000.

The NRAS tax offset available for Lee's properties are:

2 Lake Drive - NRAS tax offset $5,400

42 Hitchhiker Cres - NRAS tax offset $6,200

Lee is entitled to claim an NRAS tax offset of $8,500 worked out in the following way:

Step	Action
1	The certificate lists the NRAS tax offset for 2 Lake Drive as $5,400
2	Lee derived all of the NRAS rent derived from 2 Lake Drive, $13,000 / $13,000 = 1
3	$5,400 x 1 = $5,400
4	Lee repeats Steps 1-3 for 42 Hitchhiker Cres

Step	Action
1	The certificate lists the NRAS tax offset for 42 Hitchhiker Cres as $6,200
2	Lee derived half of the NRAS rent derived from 42 Hitchhiker Cres, $10,400 / $20,800 = ½
3	$6,200 x ½ = $3,100
4	Lee has completed Steps 1-3 for all his properties, he then moves onto Step 5
5	$5,400 + $3,100 = $8,500
6	Lee would claim $8,500 at the NRAS tax offset label in his tax return for the income year 1 July 2009 to 30 June 2010