QAHC - About NRAS

About NRAS

About NRAS

NRAS

The National Rental Affordability Scheme is an Australian Government initiative to stimulate the supply of up to 50,000 new affordable rental dwellings. Under the Scheme successful applicants will be eligible to receive a National Rental Tax Free Incentive for each approved dwelling, on the condition that they are rented to eligible low and moderate income households. Click here for eligible tenants.

The Commonwealth has identified 1.5 million Australian Households as eligible for assistance under the NRAS Scheme.

The combined Commonwealth and State Tax Free Incentive is currently $8,672.00 and this is applied annually for 10 years as long as the approved dwelling is compliant with the NRAS requirements.

The Tax Incentive and the Tenant Rent is indexed annually to the rental component of the Consumer Price Index.

As a non-profit supplier, the Consortium's 10 year Head Lease discounts the market rent by 25%.

Applications

The Consortium has received 981 NRAS approvals in Rounds 1 and 2 making it the National leading NRAS supplier. Round 3 will compose of three streams.

The Consortium is currently preparing for Round 3, Stream 3 lodgements. Please click here to apply.

Mandatory Requirements

Applications for allocations of National Rental Incentives available under the Scheme need to comply with mandatory requirements which apply to each call for applications and year of the Scheme's operation.

Mandatory requirements include:

Dwellings will be rented to 'eligible tenants'
Dwellings will be rented for a period of 10 years
Dwellings will be rented at a rate that is at least 20 per cent below market rate
Dwellings must either:

not have been lived in as a residence or
not have been lived in as a residence since having been made fit for occupancy where otherwise the dwelling was recognised as being uninhabitable or
if it has been converted to create additional residences, then a part of the dwelling or building that is capable of being lived in as a separate residence must not have been lived in as a separate residence

Dwellings will comply with State, Territory and Local Government planning and building codes and requirements.

Assessment Criteria

There are five Assessment Criteria which applicants must address in order to qualify for National Rental Incentives under the Scheme. These Criteria are:

There is a demonstrated need for the Proposal
The Proposal addresses Priority Areas of Interest
The Proposal delivers accessibility and sustainability outcomes
The Consortium or Organisation has demonstrated capacity and experience
The Proposal is financially viable

The Consortium and Lodging a Submission

The Consortium will assess and evaluate your proposal under our internal NRAS quality assessment processes and prepare an NRAS submission based on agreed numbers and types of dwellings in each proposed project. We will provide you with hands-on advice and assistance and give you access to specific processes and documentation that will make the application easier and more professional.

The Consortium prepares and lodges your application for a fixed rate cost-recovery fee of $125+GST per dwelling.

Heads of Agreement

Once an NRAS project has been approved by the Government and the ‘offer’ accepted by the Consortium, the Consortium will provide you with a ‘Heads of Agreement’. This will provide you and us with improved certainty about our joint intention to deliver approved NRAS stock on time and enable you to promote your stock, to financiers and investors, as NRAS approved.

Head Lease & Owner's Pack

Once the NRAS approved dwelling is completed and the following documentation is provided:

a Certificate of Occupation (or equivalent)
an Environmental Report
an independent Market Rental Appraisal (via the Consortium/AON Valuation Services)
a completed Ready to Let Checklist

QAHC will provide the owner with a copy of our standard 10 year Head Lease document and full NRAS Owner's Pack. This pack sets out all the operational and payment arrangements needed to ensure good outcomes for the owner, tenant and Government.

Property Management Agreement

Within the Owner's Pack you will find the Property Management Agreement. This is signed by the owner, the Consortium and the Property Manager.

The Consortium will only select experienced Property Managers and shares the Government's view that experienced and accredited non-profit providers are well positioned to provide this service.

All QAHC property managers must meet relevant national standards.

QAHC can accommodate Body Corporate and Management Rights arrangements, including those allocated to private companies and individuals.

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