International Law

Treasurer Wayne Swan and Minister for Housing Tanya Plibersek have issued the first Calls for Applications for incentives for the National Rental Affordability Scheme.

Under the scheme, the Australian Government has combined with State and Territory Governments to offer incentives to institutional investors and housing providers to build 50,000 new rental properties, which will be rented out at 20 per cent below market rate. 

In order to stimulate investment, the Scheme will offer investors:

• a Commonwealth incentive of $6,000 per dwelling per year refundable tax offset or payment; and
• a State or Territory incentive of $2,000 per dwelling per year in direct or in kind financial support.

The five mandatory requirements are as follows:
1. dwellings will be rented to 'eligible tenants'
2. dwellings will be rented for a period of 10 years
3. dwellings will be rented at a rate that is at least 20 per cent below the market rate
4. dwellings must either:
a. not have previously been occupied; or
b. not have been previously zoned for residential purposes; or
c. have been made fit for occupancy where otherwise the dwelling was 'recognised' as being uninhabitable; or
d. have been subdivided to produce more dwellings than were previously available on the identified block and section
5. dwellings will comply with State, Territory and local government, planning building codes and requirements.