National Rental Affordability Scheme (NRAS) Affordable Housing
The National Rental Affordability Scheme (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 the business sector and community organisations to build and rent dwellings to low and moderate income households at 20 per cent below-market rates for 10 years. NRAS aims to:
- increase the supply of new affordable rental housing;
- reduce rental costs for low and moderate income households; and
- encourage large scale investment and innovative delivery of affordable housing.
The Australian Government has committed $1 billion to the Scheme over four years to stimulate construction of up to 50,000 high quality homes and apartments, providing affordable private rental properties for Australians and their families.
Under the National Rental Affordability Scheme Compass Housing has been awarded 220 incentives under various rounds of funding. Some of these dwellings are tenanted and others are in planning and/or construction. The rental arrangements are as per Affordable Housing Guidelines and the household income ranges across three income bands of very low, low and moderate household incomes, rent is charged at 80% of market rent.
The transitional aspect of Affordable Housing encourages tenants to pursue real property ownership while paying reasonable rent in their present circumstances, we have had tenants go on to home ownership from the Affordable housing program.
To be eligible for NRAS Affordable Housing:
- You must be a permanent resident or have Australian citizenship.
- You must have a connection with the area that you are applying for housing in. This could be through work, education, family or long term residency.
- You must habe derived at least part of your household income from regular paid employment over the preceeding twelve months.
- You are a low-moderate income earner.
Tenant Income Levels
NRAS homes are required to be rented to eligible tenants at least 20 per cent below the market rent to be eligible for the National Rental Incentive annually. The income levels for eligible tenants are specified in the NRAS Regulations. Initial tenant income levels are assessed against gross income according to the household composition as identified below.
Initial income limit $
Upper income limit $
|Sole parent with 1 child||62,943||78,678|
|Sole parent with 2 children||78,033||97,541|
|Sole parent with 3 children||93,123||116,403|
|Couple with 1 child||77,989||97,486|
|Couple with 2 children||93,079||116,348|
|Couple with 3 children||108,169||135,211|
Household income limits are indexed annually on 1 May in accordance with the NRAS tenant income index
Eligible tenants' income must be equal to or less than the initial income limit when they become a tenant of an NRAS dwelling. Income may increase up to 25 per cent (the upper income limit) before their eligibility is affected.
Incoming NRAS eligibility for household types not covered above can be calculated using the values below:
|Each additional adult||$17,403|
|First sole parent||$47,853|
For NRAS purposes, a household is considered to be all persons ordinarily residing in the dwelling. The Department therefore requires all persons who ordinarily reside in an approved rental dwelling to have their income included as a member of the one household, in accordance with the income limits.
N.B. Some Affordable Housing Programs have specific eligibility criteria. You will be advised of any additional criteria on enquiry.
How do I apply?
You can obtain an Affordable Housing application form by contacting Newcastle Branch office by telephone, email or in person, or by downloading online from NRAS Affordable Housing Application - MPP. Completed application forms, together with any support documentation, should be forwarded to Central Administration Office.
Central Administration Office
Suite 1/44 Beaumont Street
PO BOX 967
HAMILTON NSW 2303
P 02 4920 2600 • F 02 4961 5250