The National Rental Affordability Scheme (NRAS) is a long term commitment by the Australian Government to investors prepared to build affordable rental housing.

NRAS seeks to address the shortage of affordable rental housing by offering tax-free financial incentives to the business sector and not for profit housing organisations to build and rent affordable dwellings. Through this, NRAS will:

• increase the supply of new affordable rental housing;
• reduce rental costs for low and moderate income households; and
• encourage large scale investment and innovative management of affordable housing.

The financial incentive, payable either as a grant or refundable tax offset, is paid annually for up to 10 years. To remain eligible to receive the incentive, known as the NRAS Incentive, the investor must rent their property to low and moderate income households at a rate that is at least 20 per cent below prevailing market rates.

The Australian Government is committed to stimulating the construction of 50,000 high quality homes and apartments. Up to 35,000 new dwellings will be supported in the years up to 2014-15, with a further 15,000 dwellings to be supported beyond 2014-15.

NRAS is not a public housing program; it is a tax incentive to induce more private investment in the lower price range of the residential construction market.