NEWSLETTER March 2011
Keeping developers and investors apprised on the latest progress and incentives offered with the National Rental
Affordability Scheme (NRAS), a Federal and State Government initiative to drive construction and investment of
affordable rental dwellings.
IN THIS ISSUE
Current Status of Scheme
Application process
Round 4
AMC Investor
Information Packs
NRAS properties being
rented
Increase in the NRAS
Incentive, tenant salary
ranges and rentals
What entity should hold
an NRAS investment
Credentials and
acknowledgements;
1- Current Status of the Scheme
The total national NRAS dwelling quota reinstated back to 50,000 dwellings after the
Federal Labour Government came to agreement with the greens in February 2011.
There is however a change with funding for 15,000 dwellings to be provided for after
2014/2015.
Whilst this is good news, we are still waiting for clarification as to what this means in
practical terms for the current round 4 applications.
2- Application process Round 4
Since the announcement of the proposed cut in the dwelling numbers to be funded, no
approvals have been granted.
We are hoping that in the next 4 weeks some approvals will be announced if
government policy is determined on how they will access and allocate that.
We will inform all applicants of any developments.
Affordable Management
Corporation (AMC) was
formed by the chartered
Accounting Firm HMW
Partners to be the lead
approved applicant on behalf
of consortiums for the
National Rental Affordability
Scheme (NRAS).
Steve Koman, for and on
behalf of AMC and HMW
Partners
[email protected]
Date of publication;
30 March 2011
Its been an uncertain and frustrating 8-10 weeks with the uncertainty over the scheme
but we hope that this is now overcome.
3- AMC investor information packs
For those developments that have received NRAS approvals, we have with AMC
investor information packs with include
- Summary of how NRAS operates
- AMC services and fees
- Copy of the Non Entity Joint Venture Agreement (NEJV) and appendices
If any developers required an electronic copy please email Sarah Obst
[email protected]
You are free to distribute copies to investors and potential investors.
Level 22, 333 Ann Street, Brisbane, Queensland 4000 Ph: 07 3234 8988 Fax: 073221 7431
GPO Box 888 Brisbane QLD 4001 Email: [email protected]
NEWSLETTER March 2011 p2
4- NRAS properties being rented
We have a number of properties being completed and will be rented out under the scheme this year.
The most recent to come in line are a number of 2 bedroom units located at Yorkeys Knob in Cairns.
AMC liaises with the developer and property manager prior to commencement of letting to ensure all necessary
procedures in relation to compliance requirements are met.
Prior to being let, we require a certificate of completion from the local authority, plus a market rental valuation must be
conducted within 30 days from when they are available to be occupied. This must be undertaken by a licensed Valuer.
5 – Increase in the NRAS incentive, tenant salary ranges and rentals
From 1 May the current incentive of $9,140 will be increased by the rental component of CPI for Australia.
Tenant Salary levels will increase by CPI and rents charged to tenants may be increased by the rental component of CPI
for the Capital City of the state that the dwelling is located in. This will be released shortly and we will distribute details
to all developers and property managers.
6- What entity should hold an NRAS investment (Provided by HMW Partners Chartered
Accountants)
We have had a number of investors and developers wanting to hold properties long term in a number of different
entities.
Care needs to be taken as the choice of entity and its taxable income can effect how the tax incentive is treated and in
some cases can result in the incentive becoming taxable.
If you require formal taxation advice on investment structures please call Steve Koman or Allan De Nooyer on 3234
8988.
Level 22, 333 Ann Street, Brisbane, Queensland 4000 Ph: 07 3234 8988 Fax: 073221 7431
GPO Box 888 Brisbane QLD 4001 Email: [email protected]