Monday, 11 August 2014

It's not NRAS its NRSCH ...But what is NRSCH

It's not NRAS its NRSCH ...But what is NRSCH
Over the weekend Ian Ugarte and me were reading the Sunday papers and noticed an article
about not NRAS but NRSCH.
NRSCH is a blueprint for a National Regulatory System for Community Housing Providers.


The rent being discounted by a minimum of 20% of the market rate.

The current annual income-tax free Incentive is $10,350 per dwelling, and is indexed each year to the rental component of the CPI.

WHAT WAS NRAS ? (not available anymore) The total incentive is currently $10,661 and 20% below market rent.

download or read documents
to register:
to register on website.

The article below talks about Horizon Homes and how they are using the scheme to basically produce homes under NRSCH.

Queensland’s largest housing provider awarded Tier One NRSCH rating
22 July 14

Horizon Housing, Queensland’s largest housing provider, has this week been awarded Tier One status under the new National Regulatory System for Community Housing (NRSCH). The not-for-profit is one of just 10 organisations in Australia which has received this level of registration and the only housing provider based in Queensland.
This new rating system ensures that operators offering community housing solutions meet the highest level of performance requirements and regulatory engagement, providing Government, financiers and end users, such as tenants, with confidence and assurance.
Horizon Housing CEO, Jason Cubit, believes that this significant achievement will help the Gold Coast based not-for-profit increase its reach by 300 per cent - helping over 2,400 individuals and families in 2014 to 10,000 in the next three years.
“Horizon Housing is committed to finding opportunities to grow and expand the country’s housing stock to help ease the significant shortage of properties available to low to moderate income earners, ranging from people in very high need to homeowners.
“By being awarded a Tier One NRSCH rating, we have already demonstrated our capabilities, governance and quality, meaning that we will be in a position to secure larger and more significant projects.
“To this end we expect to boost our current offering of over 2,400 properties across 15 Local Government Authorities to around 10,000 properties by 2017,” Mr Cubit said.
Minister for Housing and Public Works Tim Mander said that the introduction of the new NRSCH in Queensland means that there will be a consistent regulatory system across Australia.

“The NRSCH makes life a lot easier for community housing providers,” Mr Mander said.
“Providers now only have to register once to be registered in all states and territories.
“Our vision is to deliver a flexible, efficient and responsive housing system that provides all Queenslanders with a safe and affordable place to call home.
“Making that a reality will involve ongoing partnerships with organisations like Horizon Housing and I congratulate them on being among the first community housing providers registered under the NRSCH.”

Since the launch of the new NRSCH system in January 2014, housing providers across the country will apply to be registered in one of three tiers, ranging from large scale housing providers with development activities to small, locally based tenancy managers. Each tier comes with an associated level of compliance, monitoring and reporting frameworks, intended to commensurate with the risk that each provider undertakes.
This registration is now reciprocal, where previously providers were only registered locally by state authorities, and had to re-register to operate in other jurisdictions. Moving forward, a provider registered in Queensland, for example, is automatically registered in other participating states. This means that the delivery of housing services can be extended, encouraging an increase in competition between providers.
Based on the Gold Coast, Horizon Housing has continued to consolidate its exceptional growth in the past few years with the expansion of operations in the Maranoa and Western Downs Regions, the opening of a new office in Roma and the expansion into northern New South Wales.
As an organisation, it is committed to supporting its low income tenants and their families’ aspirations. The team at Horizon Housing works with them to provide pathways for those experiencing housing distress to move into affordable housing that ensures a sustainable future.


National Rental Affordability Scheme

The National Rental Affordability Scheme (NRAS) was created by the Council of Australian Governments (COAG) as part of a strategy to address housing affordability within Australia. The aim was to aid in the creation of 35,000 new affordable rental dwellings across Australia by 2014.
NRAS was established to:
  • Increase the supply in affordable rental dwellings;
  • Reduce rental costs for low and moderate income households; and
  • Encourage large-scale investment in affordable housing.
NRAS offers an annual Australian Government Tax free Incentive and a State or Territory Government contribution to Investors to purchase new affordable homes and rent these at a minimum of 20% below market rents to low and moderate income households. As an Investor you are eligible to receive these incentives for ten years. The NRAS incentive is the same amount regardless of your property value.

The current annual income-tax free Incentive is $10,350 per dwelling, and is indexed each year to the rental component of the CPI. The present Incentive comprises:
  1. Australian Government contribution of $7,763 per property per year as either a refundable tax offset (claimed when you lodge your tax return) or a cash payment after the end of the financial year, and
  2. State or Territory Government contribution of $2,587 per property per year (generally paid at the end of September).
NRAS incentives are granted for suitable developments. Some of the key elements in determining a suitable development are:
  • Proximity to services including education, retail, medical, transport, etc.;
  • Proximity to employment and industry; and
  • Location in an area that has an undersupply of affordable housing.
The rental rate for an investment property is set by the market rent which is determined by a valuation provided by an independent valuer. The developer/builder of your NRAS property will organise for this service to be performed, and will advise both yourself and Horizon Housing of the Market Rental value.
NRAS dwellings can only be rented to eligible tenants who qualify for the program and meet the NRAS income thresholds. These thresholds can be found on our website if you are interested in understanding the criteria your tenants need to comply with. 

Protecting Your Investment

As with any investment property purchase, you should properly assess the rental demand in the area.
You should always obtain valued advice from legal, financial and tax specialists prior to committing to the purchase of an investment property and this is also the case with an NRAS investment. Make sure that in the event the property is untenanted (therefore no rental income) you are able to cover any mortgage payments.
Detailed information regarding NRAS can be sourced from the Department of Families, Housing, Community Services and Indigenous Affairs.

Why purchase an NRAS Property?

NRAS properties are new houses, townhouses and apartments available for purchase throughout Australia. These properties are usually part of developments which include owner occupier and standard investment properties and are unidentifiable as an NRAS property.
There is usually a reduced vacancy rate due to:
  • The rent being discounted by a minimum of 20% of the market rate;
  • Horizon working closely with the tenants to ensure they sustain their tenancies over the longer term;
  • Horizon undertaking intensive screening of applicants to secure quality tenants for your NRAS Investment property.
To find out current NRSCH providers go to