NRAS refundable tax offsets
The Federal Government pays its contribution through refundable tax offsets. Eligible investors can claim it:
- in their annual tax return
- by lodging a short-form application if they are an income tax exempt entity who would not ordinarily lodge a tax return.
Tax endorsed charitable institutions that are entitled to receive their incentive in the form of a grant do not claim this through the tax system. They receive the incentive from the Secretary of the DSS (the Housing Secretary).
What is a refundable tax offset?
Most tax offsets can only reduce the amount of tax you pay to zero – that is, if your tax offsets are greater than the amount of tax you are liable to pay, you do not get a refund of the excess amount. However, there are some exceptions to this general rule. These exceptions are classed as refundable tax offsets. Refundable tax offsets can reduce the amount of tax you are liable to pay to an amount less than zero, which results in a refundable amount. The NRAS tax offset is a refundable tax offset.