NRAS APPROVED

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The National Rental Affordability Scheme (NRAS)

A Federal Government initiative to encourage the construction of new housing in Australia

NRAS OVERVIEW

NRAS is a long term commitment by the Australian Government to invest in affordable rental housing. The Scheme seeks to address the shortage of affordable rental housing by offering financial incentives to build and rent dwellings to low and moderate income households at least 20% below market rates for ten years.

The primary focus of NRAS is to:

  • increase the supply of affordable rental dwellings;
  • reduce rental costs for low to moderate income households; and
  • encourage large scale investment and delivery of affordable housing.

 

HOW IT WORKS

Investors agree to rent an Approved NRAS Property to an Eligible Tenant at least 20% below the market rate for a period of 10 years or 40% for certain approved properties in the Western Australian North West.

HOW YOU BENEFIT

The Federal and State Government will contribute tax free incentives, available each year for 10 years, to owners of Approved NRAS Properties. The Government Incentives for the 2014/2015 NRAS year are $10,661.

SECURITY OF REAL PROPERTY

Your Approved NRAS Property may be a house and land package or a completed apartment or townhouse not previously resided in. Questus have approved NRAS properties available for sale and participation in the Questus Residential Investment Fund.

INCREASE IN VALUE OF PROPERTY

The value of many asset classes and investments may fluctuate over time. Investments in direct property have generally showed consistent returns and have demonstrated to be less volatile than other asset classes and investments such as listed equities. As your underlying investment is direct real property, you will benefit in any capital growth.

NO PROPERTY MANAGEMENT HASSLES

There is no need for you to worry about rent collection or tenancy management, as Questus will appoint an approved Property and Tenancy Manager in order to maintain compliance with NRAS.

OTHER TAXATION BENEFITS

A significant taxation benefit of an Approved NRAS Property is that the Government Incentives are a refundable tax offset (RTO) and non assessable non exempt income (NANE), which means the income is tax free. All property investments enable the investor the ability to deduct associated costs with managing their property, including but not limited to property management fees, insurances, rates, interest costs, as well as specific taxation benefits such as depreciation. By owning an Approved NRAS Property all these taxation benefits are available to you. However, recent taxation rulings have determined that expenses associated with deriving the NANE are non-deductible. As a result, the portion of expenses able to be claimed by an investor is limited to the proportion of assessable income. You should seek your own independent tax advice to find out what tax benefits are available to you.

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