National Rental Affordability Scheme

Notice of disqualifying breach determination against National Rental Affordability Scheme (NRAS) approved participant McKenzie Bond Pty Ltd (McKenzie Bond)

Particulars of disqualifying breach

On 12 December 2019, a delegate of the Department of Social Services (the department) made an official determination that the approved participant McKenzie Bond had committed a ’disqualifying breach’ as set out at regulation 22BC of the National Rental Affordability Scheme Regulations 2008 (NRAS Regulations).  The determination takes effect from 10 January 2020 following the expiry of the appeal period.

McKenzie Bond’s breach resulted from an insolvency event triggered by entering into liquidation on 14 October 2019.

Consequences of disqualifying breach determination

The ‘disqualifying breach’ determination means that all McKenzie Bond’s allocations must be transferred or revoked within six months of the determination. If you are a current or a previous NRAS dwelling owner with McKenzie Bond as the approved participant  (from 1 May 2018 onwards) and you have not already been in contact with the department, please email nras@dss.gov.au to find out how the breach will affect you.

Notice of serious breach determination against National Rental Affordability Scheme (NRAS) approved participant BRAL Investments Pty Ltd (BRAL)

Particulars of serious breach

On 16 September 2019, a Deputy Secretary of the Department of Social Services (the department) made an official determination that BRAL had committed a “serious breach” as set out at regulation 22BB(1)(b)(ii) of the National Rental Affordability Scheme Regulations 2008 (NRAS Regulations).

BRAL’s breach resulted from its failure to comply with an obligation to provide information to a gaining approved participant as requested by the Secretary of the department under regulation 22D(3) of the NRAS Regulations.

Consequences of serious breach determination

A determination under regulation 22BB(2)(b) that a “serious breach” has occurred means that any investor who owns an approved NRAS dwelling for which BRAL is the approved participant may make a request to transfer the NRAS allocation attached to that dwelling to another approved participant. Such a request must be in writing and addressed to the Secretary of the department. Written requests to transfer should be sent by email to nras@dss.gov.au.

**Recent information**

October 2019 National Rental Affordability Scheme Amendment Bill 2019

The National Rental Affordability Scheme Amendment Bill 2019 passed the Senate on 22 July 2019 and the House of Representatives on 17 October 2019. The Bill was given Royal Assent and enacted on 30 October 2019. The new National Rental Affordability Scheme Act 2008 clarifies provisions and provides further flexibility in the administration of the NRAS, including supporting the making of new regulations to replace the National Rental Affordability Scheme Regulations 2008 (the current Regulations) which are due to sunset on 1 April 2020.

National Rental Affordability Scheme Regulations re-write

The department is currently making new regulations to replace the National Rental Affordability Scheme Regulations 2008 before they sunset on 1 April 2020.