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  • Claiming the NRAS refundable tax offset

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    Individuals

    Eligible individuals can claim the NRAS refundable tax offset in their tax return (supplementary section) or via myTax.

    While the tax return label is specific to partnerships and trusts, all individuals making a claim must use this label. This includes individuals who are claiming because they are a member of an NRAS consortium. Do not claim the refundable tax offset under any other tax offset labels.

    Corporate tax entities

    Eligible corporate tax entities can claim the NRAS refundable tax offset, or a share of it, in the Company tax return.

    The amount recorded at J must also be included in the calculation statement at label E.

    Super funds

    Eligible super funds can claim the NRAS refundable tax offset, or a share of it, in the Fund income tax return.

    An eligible self-managed super fund can claim the NRAS refundable tax offset, or a share of it, in the Self-managed superannuation fund annual return.

    Partnerships and partners

    A partnership that has received or is taken to have received an NRAS refundable tax offset certificate can claim the total NRAS refundable tax offset in the Partnership tax return.

    Each partner's share of the NRAS refundable tax offset will be included as part of the statement of distribution in the return.

    The partners of a partnership who are entitled to the NRAS refundable tax offset must claim their share in their respective tax returns.

    The following table shows how to calculate your NRAS tax offset for each dwelling if you are a partner of a partnership who indirectly derives NRAS rent from a rental dwelling.

    Step 1

    The certificate the partnership received states the amount of the refundable tax offset for that entity.

    Step 2

    Apportion that amount by the NRAS rent you derive from the dwelling for the income year and the total NRAS rent derived from rental dwellings covered by the certificate for the income year.

    Step 3

    Add together the amounts you have worked out for each dwelling to work out the total amount of your refundable tax offset. This is the amount of the tax offset you can claim in your tax return.

    Trusts, trustees and beneficiaries

    A trust that has received or is taken to have received an NRAS refundable tax offset certificate can claim the total NRAS refundable tax offset amount in the Trust tax return.

    Each beneficiary's share of the NRAS refundable tax offset will be included in the Statement of Distribution in the return.

    The beneficiaries of a trust who are entitled to the NRAS refundable tax offset must claim their share in their respective tax returns.

    If the trust has no net income, the full amount of the NRAS refundable tax offset will be included under the column entitled 'Income to which no beneficiary is presently entitled and in which no indefeasible vested interest, and the trustee's share of credit for tax deducted' in the statement of distribution in the Trust tax return.

    The following table shows how to calculate your NRAS tax offset for each dwelling if you are a trust beneficiary who indirectly derives NRAS rent from a rental dwelling.

    Step 1

    The certificate the trust received states the amount of the refundable tax offset for that entity.

    Step 2

    Apportion that amount by the NRAS rent you derive from the dwelling for the income year and the total NRAS rent derived from rental dwellings covered by the certificate for the income year.

    Step 3

    Add together the amounts you have worked out for each dwelling to work out the total amount of your refundable tax offset. This is the amount of the tax offset you can claim in your tax return.

     

    Example

    Matthew and Jessica are beneficiaries of Trust X. Trust X derives NRAS rent of $160,000. Matthew and Jessica are each entitled to 50% of this income. Trust X received a certificate on 15 June 2019 for the 2019 income year stating that the refundable tax offset in relation to Trust X's participation in the NRAS is $60,000.

    Matthew is entitled to claim a refundable tax offset of $30,000, which is worked out as follows:

    Step 1

    The certificate the trust received states that the amount of the refundable tax offset for that entity is $60,000.

    Step 2

    $60,000 × ($80,000 ÷ $160,000) = $30,000

    Step 3

    Matthew can claim a refundable tax offset of $30,000 in the income year that begins in the NRAS year ending 30 April 2019.

     

    End of example

    Income tax exempt entities

    Endorsed charitable institutions participating in the NRAS in their own right can receive their NRAS incentive as a payment from the Housing Secretary. Where an NRAS participant was an endorsed charitable institution for only part of an NRAS year, special apportionment rules apply.

    An income tax exempt entity that is entitled to the NRAS refundable tax offset can claim it by completing the Return for refund of tax offset – National rental affordability scheme – Income tax exempt entities (NAT 72789)(PDF 196KB)This link will download a file.

    Members of an NRAS consortium

    Members of an NRAS consortium who are entitled to the NRAS refundable tax offset must claim their share in their respective tax returns.

    The following table shows how the NRAS tax offset is calculated per dwelling for a member of an NRAS consortium.

    Step 1

    The certificate the approved participant of the NRAS consortium receives from the Housing Secretary states the amount of NRAS tax offset for each rental dwelling. The approved participant should identify your share of the NRAS tax offset.

    Step 2

    Divide the amount of NRAS rent you derived 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 to step 2 will be equal to 1.

    Step 3

    Multiply the amount at step 1 by the amount you worked out at step 2. The result is the amount of NRAS tax offset you are entitled to for that rental dwelling.

    Step 4

    If you have derived NRAS rent for more than one rental dwelling, repeat steps 1–3 for each rental dwelling.

    Step 5

    Add together the amounts you worked out at step 3 for each rental dwelling you derived NRAS rent from. This is the amount of NRAS tax offset you are entitled to.

    Step 6

    Claim the amount at step 5 in your tax return.

    It is recommended that the approved participant of the NRAS consortium provide a signed and dated letter addressed to the member of the consortium that contains the information necessary for the member to make their claim. That information could be presented as follows:

    Sample letter – NRAS tax offset entitlement

    You are a member of an NRAS consortium. The Department of Social Services has issued NRAS certificate [certificate ID] to [name of approved participant] as the approved participant for the NRAS consortium.

    Your NRAS tax offset entitlement details for [NRAS year] are:

    Dwelling ID

    Dwelling address

    NRAS tax offset

    [Dwelling ID]

    [[Dwelling address]

    [Value]

    Keep a copy of this statement with your tax records.

    End of example

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      Last modified: 15 Oct 2019QC 21519