NRAS Tanami Apartments, Broome WA
NRAS is a long term commitment by the Australian Government to invest in affordable rental housing.
The Scheme seeks to address the shortage of affordable rental housing by offering financial incentives to build and rent dwellings to low and moderate income households at least 20% below market rates for ten years.
The primary focus of NRAS is to:
•• increase the supply of affordable rental dwellings;
•• reduce rental costs for low to moderate income households; and
•• encourage large scale investment and delivery of affordable housing.
The National Rental Affordability Scheme Act 2008 and the National Rental Affordability Scheme Regulations 2008 (the
Act) passed the Senate in November 2008.
The National Rental Affordability Scheme is an initiative by the Federal and State
Governments to encourage the construction of new housing in Australia.
The Federal Government has contributed $4.5 billion and State Governments
$1.5 billion towards NRAS to create up to 50,000 high quality new affordable
rental properties across Australia.
In the May 2014 Budget, the Federal Government cancelled Round 5 of
NRAS. The NRAS entitlements set aside for the Tanami Apartments have been
sourced from previous allocation of NRAS, are still valid, and have been activated on
completion of construction.
The Government Incentives are tax free incentives1, available each year for 10 years to owners of NRAS Approved Properties.
The State component of NRAS is paid as a non assessable, non exempt income (NANE). ATO rulings have determined that expenditure associated with deriving the NANE is non-deductible. For an Investor to be eligible for the Government Incentives, NRAS requires you to rent your Approved NRAS Property to an Eligible Tenant at least 20% below the market rate.
Under NRAS, the Federal, State and Territory Governments will currently
contribute $11,248.09 per annum for each Approved NRAS Property.
¤¤ Security of Real Property
Your Approved NRAS Property may be a house and land package or a completed apartment or townhouse not previously resided in. Australian Affordable Housing
Securities Limited (AAHS) has already made application to the Department of Social Services (DSS) to have approved NRAS properties available for sale and participation in the Australian Residential Investment Fund (ARIF), which can be arranged through AAHS.
¤¤ Increase in Value of Property
The value of many asset classes and investments may fluctuate over time. Investments in direct property have generally showed consistent returns
and have demonstrated to be less volatile than other asset classes and investments such as listed equities. As your underlying investment is direct real property, you will benefit in any capital growth. Any increase in the value of property has taxation implications.
¤¤ Other Taxation Benefits
A significant taxation benefit of an Approved NRAS Property is that the Government Incentives are a refundable tax offset (RTO) and non-assessable non-exempt income (NANE), which means the income is tax free.
All property investments enable the investor the ability to deduct associated costs with managing their property, including but not limited to property management fees, insurances, rates, interest costs, as well as specific taxation benefits such as depreciation.
By owning an Approved NRAS Property all these taxation benefits are available to you. However, recent taxation rulings have determined that expenses associated with deriving the NANE are non-deductible. As a result, the portion of expenses able to be claimed by an investor is limited to the proportion of assessable income. You should seek your own independent tax advice to find out what tax benefits are available
Broome, Western Australia
Broome is located 2,000km North of Perth with a population of 14,000. Considered as an iconic Australian tourism destination it offers a beautiful coastline and turquoise beaches set in a unique tropical environment. Yet, there’s more to Broome than just tourism. Broome is fast becoming a central business hub for the North West which has a vibrant commercial centre and ever growing business environment.
With an industry built on pearling, today the Broome economy is supported by diverse industry such as oil, gas, mining, aquaculture and agriculture. Strategically located just 240 nautical miles from the Browse Basin, it is now in the spotlight as a result of the development of the Browse Basin, the largest project ever considered in the Kimberley. The economic impact of this project is considerable, underpinning growth for years to come, as Broome would be a supply centre for the offshore development work. As an alternative to other North West centres, together with all essential services and amenities, Broome offers a unique, relaxed lifestyle. This makes Broome well positioned to tackle the challenges associated with both a transient and resident workforce.
The Broome property market is driven by a strong rental market with a history of constrained land supply. Vacancies are as low as 1% during peak periods, offering investors the opportunity to purchase a solid investment property in the region.
Demand for NRAS properties in Broome is underpinned by corporate and government agencies and small businesses. NRAS properties will be rented to key service workers that provide an essential role in the functioning of local business in Broome.
¤¤ 2 Bedroom / 1 Bathroom Apartment
Under NRAS, the Federal State and Territory Governments will currently contribute $11,2448.09 per annum for each Approved NRAS Property. Download NRAS Investment Opportunity: Tanami Apartments to learn more.