National Rental Affordability Scheme (NRAS) Questions and Answers Outcome of applications for incentives through NRAS Round 5

National Rental Affordability Scheme (NRAS) Questions and Answers Outcome of applications for incentives through NRAS Round 5

Please refer to the following Question and Answers (Q&As)  on the Round 5 decision before calling the Helpline. Most general queries on the decision will be answered by this Q&A.

All other website content is currently being reviewed in line with the Round 5 decision.

General Information

What was the outcome of Round 5 applications?

The Government announced in the Budget on 13 May 2014 that it is not proceeding with Round 5 of NRAS. This means that no incentives will be allocated for Round 5.

Will there be any future rounds?

There are no funds for future rounds at this time. Any decision regarding future funding rounds is a decision for Government.

What will happen to the money that was set aside for Round 5?

The money that was set aside for Round 5 will be returned to the Budget and contribute to Australia's savings.

Does this mean that affordable housing is not a priority for Government?

The Government remains committed to addressing the undersupply of affordable housing. NRAS will continue to contribute over $1 billion to housing supply and affordability over the next 4 years until 30 June 2018.

The Government continues to invest $1.3 billion each year through the National Affordable Housing Agreement. We expect to spend around $4.3 billion in Commonwealth Rent Assistance in 2014-15. It has also recently committed $115 million, to be matched by the states and territories, to renew the National Partnership Agreement on Homelessness, which will enable critical homelessness initiatives to continue.

Why couldn’t the scheme be fixed and incentives offered?

The scheme has been slow in delivering affordable homes and has failed to achieve its delivery targets despite ongoing Government funding. The Government remains committed to improving the administration of the scheme for incentives already allocated.

Approved Participants

How does this impact the incentives I already have as an Approved Participant?

Incentives already allocated through the scheme will continue to be paid for up to ten years as long as eligibility requirements are met and homes in the construction pipeline are built according to agreed timeframes and in agreed locations.

The Government will be improving the administration of the scheme by imposing tighter conditions on the delivery of dwellings within agreed timeframes. Participants will be notified of any changes to delivery conditions.

Investors

What does this mean for me as a current investor in the scheme?

If you are an investor in dwellings that are currently rented as part of the scheme, this decision will not impact your existing investment in the scheme. For dwellings not yet delivered, you should discuss the progress of the project with your Approved Participant.

In the past, many dwellings have been delivered long after the agreed date and the Department will be withdrawing incentives where insufficient progress has been made. The Australian Government cannot become involved in private commercial arrangements between Approved Participants and Investors.

What does this mean for me as a potential investor in the scheme?

Investors can continue to invest in the scheme as there are still a number of dwellings to be delivered through the scheme (around 18,000 dwellings are currently in the construction pipeline).

For more information please read through the information for private investors.

Tenants

What does this mean for me as a current NRAS tenant?

Current NRAS tenants and existing tenancy agreements will not be impacted by the decision not to offer any incentives under Round 5. Homes currently rented through the scheme will continue to be paid NRAS incentives, subject to the requirements of the scheme continuing to be met.

What does this mean for me as a potential tenant?

You will still be able to register your interest in becoming an NRAS tenant.  Homes are still available for rent through the scheme, with many more homes to be delivered.  If you are interested in tenanting a NRAS home, please contact a NRAS tenancy manager directly to register your interest.  See list of current tenancy managers.

Round 5 applicants

The Round closed in August last year, why has it taken so long to get an answer about Round 5?

The Round was advertised by the former Government. The future of the scheme was carefully considered in the context of other Budget priorities by the new Government.

What will happen to my application?

The assessment process was not finished and no further work will be undertaken.

Applicants were advised that submitting an application for Round 5 did not guarantee they would receive any incentives. The Round 5 application guidelines indicated that the department could terminate any part of the assessment process, including not making any offers.

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