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  • Election to relinquish your entitlement to the NRAS tax offset

    This election allows approved participants of NRAS consortiums to relinquish their entitlement to the NRAS tax offset for an NRAS year in favour of certain other members of their consortium where the member did not directly derive NRAS rent. For an example of when this can occur, refer to ATO ID 2009/146.

    Who can make this election?

    You are eligible to make this election if the following applies:

    • you are the approved participant (within the meaning of the regulations made for the purposes of the National Rental Affordability Scheme Act 2008External Link) of a National Rental Affordability Scheme (NRAS) consortium (or you were the approved participant at any time during the NRAS year)
    • you were issued a certificate which entitles you to the NRAS tax offset
    • you want to make an election to relinquish your entitlement to the NRAS tax offset to a member of the consortium.

    What should you do with this election?

    You must give a copy of the election to the member of the NRAS consortium who will be entitled to an NRAS tax offset as a result of the election. You must keep a copy of the completed election and make it available if we request it. Do not send your completed election to us.

    When should you make this election?

    The election must be made within 30 days after the day the Housing Secretary issues an NRAS certificate to the NRAS approved participant in relation to each NRAS year.

    If the Housing Secretary issues an amended NRAS certificate for the NRAS dwelling for the income year to the NRAS approved participant, the election must be made 30 days after this day.

    How much of the entitlement can you relinquish?

    You can only pass on an amount of your NRAS tax offset entitlement equal to the proportion of the total NRAS rent derived from an NRAS dwelling for the income year belonging to the member. That amount would be equal to the member's rent proportion of the total rent.

    Can you change the election after it is made?

    Once an election is made it cannot be revoked.

    The legislation says you have to make this election in an 'approved form'. What will be considered an approved form for the purposes of making this election?

    There is no specific approved form that we have published for the purposes of making this election. However, an election will be considered to be made in the 'approved form' as long as the election records contain the following details:

    • a statement that the document is the election of the approved participant to relinquish their entitlement to the NRAS tax offset under Division 380 of the Income Tax Assessment Act 1997
    • name of the approved applicant who is making the election (the electing member)
    • name of the members to whom the NRAS entitlement is being transferred
    • mailing address for the member
    • NRAS certificate ID
    • NRAS dwelling ID
    • NRAS dwelling address
    • amount of entitlement
    • relevant NRAS year
    • date election was made
    • it is dated and signed by the approved participant.

    This can be satisfied by providing a signed and dated letter addressed to the member which contains the following:

    Example

    National Rental Affordability Scheme (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. The approved participant has elected on [date] for you to receive the NRAS tax offset. Your NRAS tax offset entitlement details for [NRAS year] are as follows:

    Dwelling ID

    Dwelling address

    Amount

    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
      Last modified: 11 Dec 2017QC 21519