There hasn't been much posted here about the governments National Rental Affordability Scheme (NRAS)?
We've noticed a lot of advertising though in the papers and magazines of late.
http://www.ato.gov.au/taxprofessionals/content.asp?doc=/content/00142005.htm
We've noticed a lot of advertising though in the papers and magazines of late.
http://www.ato.gov.au/taxprofessionals/content.asp?doc=/content/00142005.htm
Under the new National Rental Affordability Scheme (NRAS) announced in March 2008, the Australian Government will provide $622.6 million over four years for the provision of 50,000 affordable rental properties across Australia for low and middle income earners.
The government's financial incentive will be delivered in two ways:
1.The Federal Government will provide an annual incentive to property investors of $6,000 per property for up to ten years, which can be claimed via a refundable tax offset.
2.State and Territory governments have agreed to provide annual support of at least $2,000 per annum per property for up to 10 years. The state and territory contribution may take the form of cash grants, concessions on stamp duty or other tax credits.
The scheme is a fantastic opportunity for both tenants and investors:
•For tenants, new housing will be available for low to middle income earners at 20% under the market rental rates;
•For investors, the tax credits attached equate to an annual tax deduction of nearly $27000 per year (based on a marginal tax rate of 30%. In addition, tax benefits associated with negative gearing are still available.'
It is important to note that the refundable NRAS tax offsets can be obtained throughout the year using the Income Tax Withholding Variation (ITWV) application process. Using this process, investors do not have to wait to lodge their tax returns to receive their financial incentive