NRAS in Budget 2012

[Paul Thewlis]

The Federal Government’s Budget 2012 announcement has the National Rental Affordability Scheme (NRAS) on a steady-as-she-goes course. After last year’s budget significantly adjusted the timing of the role out of NRAS properties, this year’s budget reaffirms the Gillard Government’s commitment to NRAS. More on my blog.

 

[ash74]

The Federal Government’s Budget 2012 announcement has the National Rental Affordability Scheme (NRAS) on a steady-as-she-goes course. After last year’s budget significantly adjusted the timing of the role out of NRAS properties, this year’s budget reaffirms the Gillard Government’s commitment to NRAS. More on my blog.

Do you know if there is anything else new for property investors in the budget ?

 

[Paul Thewlis]

I can't see any major items that will effect property investors. I'd be interested in other's views.

For those with properties in company structures the decision to not reduce the company tax rates will be relevant.

For non-residents owning property in Australia there are some income tax changes.

For those with property in a SMSF they need to look at the superannuation tax changes but on a quick first look they seem to apply to people on very high incomes and may not be relevant to most people with property in their SMSF.

However it needs a longer look over the next few days and I'm already starting to get various commentaries coming in on my email - not necessarily applying to property.

Regards
Paul

 

[boomtown]

So what happens to current NRAS owners if Tony Abbott cancels NRAS next year?

 

[Paul Thewlis]

Unlike most other legislation introduced by the Government Tony and Co. voted for the NRAS legislation. So did the Greens. It's unlikely that NRAS will be removed if the Coalition win the next election. Of course they might make the odd change just so they can say they've made it better and claim ownership of it.
Regards
Paul

 

[euro73]

NRAS as actually a Liberal initiative that they didnt get to implement prior to losing office in 07, so the likelihood of them wanting to reduce their support for it is low.