NRAS offers a substantial annual tax-free incentive, the NRAS Incentive, for every dwelling built under its auspices.

Investors need to apply for NRAS Incentives, and if offered, must agree to rent approved dwellings at a rate that is at least 20 per cent below prevailing market rates, to low and moderate income households.

The NRAS Incentive is a funding stream not available to standard residential property investors. Each approved dwelling attracts the NRAS Incentive for 10 years, so long as investors continue to comply with conditions relating to tenant eligibility and rent discounts.

The annual income-tax free Incentive is currently $9,524 per dwelling, and is indexed each year to the rental component of the CPI. The Incentive comprises:

• an Australian Government contribution of $7,143 per dwelling per year (as a refundable tax offset or payment); and
• a State or Territory Government contribution of $2,381 per dwelling per year (in direct or in-kind financial support).

The Incentive provided under the Scheme assists investors and property developers to work up proposals that offer an attractive and competitive rate of return.

The Government is committed to ensuring that the full value of the NRAS Incentive is passed to all investors. Prospective investors are encouraged to talk to the Australian Tax Office before finalising their investment structure or applying for NRAS Incentives, to ensure this policy objective is achieved.

The Australian Government has no legal or equitable claim over an NRAS property.