Frequently Asked Questions
INVESTORS
What are the main NRAS criteria?
To be eligible to receive the NRAS incentive payment, investors must:
For more information, please read your NRAS owners agreement and the product disclosure statement .
Is the payment secure?
Yes, NRAS is a joint government initiative backed by legislation and funded by the Commonwealth and State Governments. AHC has obtained approval of its NRAS arrangement by the Australian Securities Investment Commission (ASIC). The terms of the ASIC approval require AHC to ensure that any payments it receives from Government are paid directly into a trust account held on behalf of investors. The trustee is legally obligated to act in the interests of the beneficiaries (the investor and AHC) and distribute the money according to the NRAS agreement.
AHC does not get paid until the investors have been paid because AHC’s fees are based on a percentage of the National Rental Incentive. AHC will always act in the best interests of the investor to ensure the incentive payment is maximised for the mutual benefit of the investor and AHC.
Is the state payment taxed?
No, the payment is treated as non-accessible, non-exempt (NANE) income for the investor. Investors should undertake their own investigations and seek appropriate independent advice to how this may impact them.
Can I choose my own tenants?
Yes. Tenants must meet eligibility criteria and must not be an owner of the property.
How is the rent set?
The rent is set by an independent valuation in years 1, 5 and 8. In all other years, the rent can be set by a variety of methods, but it must not increase by more than the percentage change in the rental component of the housing group CPI for the relevant state capital city.
Can I get more than one valuation?
If your property is valued by an independent valuer for years 1, 5 and 8 and you are not happy with the market rent that has been listed, you are free to seek an alternate valuation from an other independent valuer.
You must however be aware that once a valid valuation has been conducted and provided to the Department of Social service a subsequent valuation cannot be provided, regardless of the reasons. It is also imperative that AHC, your property manager and the Department of Social services are working off of the same valuation and market rent.
Is the payment guaranteed?
No. The Australian government does not endorse, guarantee or secure the investment in any way. The provision of the incentive payment is dependent on the satisfactory completion of all conditions and compliance requirements under the scheme. Investors should undertake their own investigations and seek appropriate independent advice to ensure investing in an NRAS dwelling is right for their circumstances.
Can my son or daughter rent my NRAS property?
Yes. The tenant must be eligible and the property must not be rented to the owner.
What fees are involved?
Affordable Housing Consulting charge a once off establishment fee and a yearly facilitation fee which is based on a % of the total annual incentive payment.
Can I sell my NRAS property?
Yes you are free to sell your NRAS property in the same manner that you are able to sell any investment property. It is recommended that you use an agent that is familiar with the NRAS scheme or at the very least get your agent to contact us so that they can become familiar with the scheme.
There is no fees involved with selling an NRAS property provided the purchaser takes on the NRAS entitlement, in this case we simply transfer the NRAS entitlement over to the new owner as of the settlement date of the property for a fee of $550.00 which is payable by the new owner.
If the new owner does not wish to take on the NRAS entitlement, for example they wish to purchase the property as an owner occupier dwelling, an NRAS exit fee is payable. This fee is outlined in your NRAS owners agreement and is calculated as a % of the current years NRAS incentive payment multiplied by the number of years remaining in the 10 year NRAS period.
For more information on the sales process, download our sales fact sheet.
Can I take my property out of the scheme so that I can live in it?
Yes you can however there is an exit fee to do this. This fee is outlined in your NRAS owners agreement and is calculated as a % of the current years NRAS incentive payment multiplied by the number of year remaining in the 10 year NRAS period.
Do I still get paid the incentive payment if my property is vacant?
It will depend on how long the property is vacant. Under the NRAS scheme your property can be vacant for up to 91 days (13 weeks or 3 months) and you will still be entitled to the full NRAS payments.
If the property is vacant between 92 and 182 days (26 weeks or 6 months) you will be entitled to a pro-rated incentive payment based on the number of days that the property was tenanted.
If the property is vacant for more than 182 days no incentive payment is payable for the entire NRAS year.
If you property is vacant for 182 days or more and the vacancy extends across 2 NRAS years, you may not eligible for an incentive payment for either of the NRAS years.
What are the main NRAS criteria?
To be eligible to receive the NRAS incentive payment, investors must:
- Rent out a brand new property
- Use an approved property manager
- Discount the rent by at least 20%
- Rent the property to eligible tenants
- Increase the rent no more than once per year.
- Adhere to the state tenancy act at all times.
For more information, please read your NRAS owners agreement and the product disclosure statement .
Is the payment secure?
Yes, NRAS is a joint government initiative backed by legislation and funded by the Commonwealth and State Governments. AHC has obtained approval of its NRAS arrangement by the Australian Securities Investment Commission (ASIC). The terms of the ASIC approval require AHC to ensure that any payments it receives from Government are paid directly into a trust account held on behalf of investors. The trustee is legally obligated to act in the interests of the beneficiaries (the investor and AHC) and distribute the money according to the NRAS agreement.
AHC does not get paid until the investors have been paid because AHC’s fees are based on a percentage of the National Rental Incentive. AHC will always act in the best interests of the investor to ensure the incentive payment is maximised for the mutual benefit of the investor and AHC.
Is the state payment taxed?
No, the payment is treated as non-accessible, non-exempt (NANE) income for the investor. Investors should undertake their own investigations and seek appropriate independent advice to how this may impact them.
Can I choose my own tenants?
Yes. Tenants must meet eligibility criteria and must not be an owner of the property.
How is the rent set?
The rent is set by an independent valuation in years 1, 5 and 8. In all other years, the rent can be set by a variety of methods, but it must not increase by more than the percentage change in the rental component of the housing group CPI for the relevant state capital city.
Can I get more than one valuation?
If your property is valued by an independent valuer for years 1, 5 and 8 and you are not happy with the market rent that has been listed, you are free to seek an alternate valuation from an other independent valuer.
You must however be aware that once a valid valuation has been conducted and provided to the Department of Social service a subsequent valuation cannot be provided, regardless of the reasons. It is also imperative that AHC, your property manager and the Department of Social services are working off of the same valuation and market rent.
Is the payment guaranteed?
No. The Australian government does not endorse, guarantee or secure the investment in any way. The provision of the incentive payment is dependent on the satisfactory completion of all conditions and compliance requirements under the scheme. Investors should undertake their own investigations and seek appropriate independent advice to ensure investing in an NRAS dwelling is right for their circumstances.
Can my son or daughter rent my NRAS property?
Yes. The tenant must be eligible and the property must not be rented to the owner.
What fees are involved?
Affordable Housing Consulting charge a once off establishment fee and a yearly facilitation fee which is based on a % of the total annual incentive payment.
Can I sell my NRAS property?
Yes you are free to sell your NRAS property in the same manner that you are able to sell any investment property. It is recommended that you use an agent that is familiar with the NRAS scheme or at the very least get your agent to contact us so that they can become familiar with the scheme.
There is no fees involved with selling an NRAS property provided the purchaser takes on the NRAS entitlement, in this case we simply transfer the NRAS entitlement over to the new owner as of the settlement date of the property for a fee of $550.00 which is payable by the new owner.
If the new owner does not wish to take on the NRAS entitlement, for example they wish to purchase the property as an owner occupier dwelling, an NRAS exit fee is payable. This fee is outlined in your NRAS owners agreement and is calculated as a % of the current years NRAS incentive payment multiplied by the number of years remaining in the 10 year NRAS period.
For more information on the sales process, download our sales fact sheet.
Can I take my property out of the scheme so that I can live in it?
Yes you can however there is an exit fee to do this. This fee is outlined in your NRAS owners agreement and is calculated as a % of the current years NRAS incentive payment multiplied by the number of year remaining in the 10 year NRAS period.
Do I still get paid the incentive payment if my property is vacant?
It will depend on how long the property is vacant. Under the NRAS scheme your property can be vacant for up to 91 days (13 weeks or 3 months) and you will still be entitled to the full NRAS payments.
If the property is vacant between 92 and 182 days (26 weeks or 6 months) you will be entitled to a pro-rated incentive payment based on the number of days that the property was tenanted.
If the property is vacant for more than 182 days no incentive payment is payable for the entire NRAS year.
If you property is vacant for 182 days or more and the vacancy extends across 2 NRAS years, you may not eligible for an incentive payment for either of the NRAS years.