National Rental Affordability Scheme (NRAS) – household income (indexation)

Overview

Under NRAS, a condition that approved participants need to satisfy in order to remain eligible for an incentive is that dwellings are rented to eligible tenants.
The gross income limits for households of eligible tenants are specified in the NRAS Regulations.

Income levels are assessed against gross income limits according to the household composition.  For NRAS purposes, a household is considered to be all persons who are tenants of the dwelling. All persons who ordinarily reside in a NRAS home should have their income included as a member of the household.

A household’s gross income for the 12 months prior to commencement of tenancy of an NRAS dwelling must be equal to or less than the relevant income limit for the household’s composition. Household income may then increase above the income limit. However, existing tenants will cease to be eligible if their household income exceeds the applicable household income limit by 25 per cent or more in two consecutive eligibility years.

Each year, household income limits are indexed according to percentage changes of All Groups Component of the Consumer Price Index so that the limits effectively maintain the same target group of tenants over the life of the Scheme.

The 2013-14 household income eligibility limits

The 2013-14 household income eligibility limits are:

2013-14 Year

$

1st Adult

45,956

Each Additional Adult

17,579

First Sole Parent

48,336

Each Child

15,243

For ease of application purposes, a variety of 2013-14 income eligibility limits for various household compositions are presented below.


Household composition

Initial household income limit ($)

Existing tenant income limit ($)*

One adult

45,956

57,445

Two adults

63,535

79,419

Three adults

81,114

101,393

Four adults

98,693

123,366

Sole parent with one child

63,579

79,474

Sole parent with two children

78,822

98,528

Sole parent with three children

94,065

117,581

Couple with one child

78,778

98,473

Couple with two children

94,021

117,526

Couple with three children

109,264

136,580

*If the household income of an existing tenant exceeds the indicated limit (25 per cent greater than the initial income limit) in two consecutive NRAS years, the tenant will cease to be an eligible tenant. This column indicates figures which are 25 per cent higher than the household income limits for ease of reference for this purpose.

More information

For more information visit National Rental Affordability Scheme.

Content Updated: 3 September 2013