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

Overview

In order to be eligible for an incentive under NRAS, approved participants must ensure 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 must 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 increase above the income limit in subsequent years. However, a dwelling ceases to be eligible for an incentive if the tenants’ 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 the 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 2014-15 household income eligibility limits

The 2014-15 household income eligibility limits are:

2014-15 Year

Household Income ($)

1st Adult

47,289

First Sole Parent

49,738

Each Additional Adult

18,089

Each Child

15,685

For ease of application purposes, a variety of 2014-15 income eligibility limits for various household compositions are presented below.


Household composition

Initial household income limit ($)

Existing tenant income limit ($)*

One adult

47,289

59,111

Two adults

65,378

81,722

Three adults

83,466

104,333

Four adults

101,555

126,944

Sole parent with one child

65,423

81,779

Sole parent with two children

81,108

101,385

Sole parent with three children

96,793

120,991

Couple with one child

81,063

101,329

Couple with two children

96,748

120,934

Couple with three children

112,433

140,541

*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.

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