Media Release by The Hon Tanya Pibersek MP

National Rental Affordability Scheme delivers more affordable housing

The Rudd Government today announced that it will deliver 6,741 new affordable rental homes for low and middle income earners under the second round of the National Rental Affordability Scheme.

The National Rental Affordability Scheme will help build up to 50,000 new properties across Australia by 2012, which will then be rented out at a minimum 20 per cent below market rate.

The Government is investing more than $1 billion in the National Rental Affordability Scheme over the next four years to increase the supply of new, affordable rental homes across Australia.

NRAS provides annual incentives to developers of $8,672 per home, indexed to the rental component of the CPI for a 10 year period.

This new construction work generates jobs by providing work for builders and tradespeople as each dwelling needs to be newly constructed to qualify for Government incentives.

The Government is keen to see low to moderate income workers such as those in childcare, retail and hospitality able to afford to live in areas where their skills are needed.

The Government created NRAS to increase the number of affordable rental properties across Australia and guarantee that they will be rented to people on low incomes including key workers.

The level of interest from the corporate sector has been particularly encouraging in round two and we expect that sector to continue to take advantage of the investment opportunity that NRAS provides.

Rental vacancy rates remain tight across Australia – particularly in capital cities.

This innovative scheme aims to provide affordability in the rental sector by requiring rents to be at least 20 per cent below market value for tenants who meet the income eligibility requirements.

NRAS Total Round Two Offers of Incentives
State Inner Metropolitan Outer Metropolitan Provincial Rural Total
ACT 101       101
NSW 711 226 200 226 1363
QLD 329 460 359 501 1649
SA 311 123   108 542
TAS 70 114 40 113 337
VIC 1251 891 129 134 2405
WA 239 105     344
Total 3012 1919 728 1082 6741
NRAS Round 2 List of Successful Applicants
State Name of Applicant  Total
ACT Community Housing Canberra The Uniting Church in Australia Property Trust  8,912
ACT Total  101
NSW             Affordable Community Housing Ltd  163
Baptist Community Services – NSW & ACT  59
BlueCHP Ltd  12
Churches Community Housing Limited  56
Community Housing Ltd  110
Compass Housing Services Co Ltd Fourth Sector Enterprises Pty Ltd as Trustee for Tasmanian Community  160
Housing Property Trust (TCHPT)  30
Hume Community Housing Association Company Ltd  112
Major Investment Group II Pty Ltd  20
Mission Australia  126
Payce Consolidated Ltd  350
Queensland Affordable Housing Consortium Ltd  10
The Uniting Church in Australia Property Trust  155
NSW Total  1,363
 QLD            Affordable Management Corporation Pty Ltd atf Affordable Housing Management Fund  111
Alloa Properties Pty Ltd atf the DG and CM Allan Family Trust  20
Ausbuild Developments Pty Ltd Aztec Developments (Qld) Pty Ltd atf Aztec 19 Joyce Trust and Network  95
Homes Real Estate Pty Ltd atf Konan Hammer Trust  21
Brisbane Housing Company Ltd  155
Gladstone Central Committee on the Ageing  21
Gold Coast Housing Company Ltd ING Garden Villages Pty Limited CAN 129 703 911 as trustee for the Garden  154
Villages Management Trust Oak Tree Retirement Villages Pty Ltd and Oak Tree Retirement Village Park  20
Avenue Pty Ltd  75
Queensland Affordable Housing Consortium Ltd  904
Spike (Qld) Pty Ltd  44
Sundale Garden Village, Nambour  29
QLD Total  1,649
SA Adelaide Benevolent and Strangers Friend  Affordable Housing Consulting Pty Ltd  20 38 
Aged Care and Housing Group Incorporated  22
Bedford Industries Incorporated  21
Common Ground Adelaide Ltd  52
James Brown Memorial Trust  44
Julia Farr Housing Association Inc  26
Lutheran Community Housing Support Unit Inc  40
Portway Housing Association Incorporated  22
Service to Youth Council Inc  24
Southern Junction Community Services Inc  83
The Corporation of the City of Adelaide  27
Unity Housing Company Limited  103
Wheelchair Accessible Community Housing Association Incorporated  20
SA Total  542
TAS      A D Bayne & R E Fergusson & F J Grant (in partnership) Fourth Sector Enterprises Pty Ltd as Trustee for Tasmanian Community  120
Housing Property Trust (TCHPT)  21
Mission Australia  28
Ninety Four Feet Pty Ltd  42
Southern Bay Investments  46
St Ann’s Homes Inc  80
TAS Total  337
VIC         Common Equity Housing Ltd  354
Ethan Affordable Housing Limited  148
Hamton JV (Coburg) Pty Ltd  255
Holmeslen Institute of Tafe  100
Mission Australia  285
Monash University Oak Tree Retirement Villages Pty Ltd and Oak Tree Retirement Village Park  750
Avenue Pty Ltd  25
Supported Housing Limited  461
The Uniting Church in Australia Property Trust  27
VIC Total  2,405
WA   Accelerated Wealth Systems PL ATF The Affordable Housing Systems Group Unit Trust  105
Florin Pty Ltd Foundation Housing as the WA Leading Agency for the Urban Affordable  39
Housing Association  200
WA Total  344
Total  6,741