Gillard Government releases new incentives to build affordable rental homes

The Gillard Labor Government today reaffirmed its commitment to affordable rental housing with a new dedicated round of funding to support ‘shovel ready’ projects under the National Rental Affordability Scheme.

“To ensure there is no delay, this new round will open on 18 April for up to 1000 shovel-ready homes to be substantially completed by June 2014 and available for rent by end December 2014, from withdrawn or surrendered incentives that can be reallocated,” Mr Butler said.

“The sector has been asking for unallocated incentives to be put back out to the market and we are doing that now.”

The new NRAS round opens on 18 April and will close on 22 May 2013.

Mr Butler also announced the fifth round of incentives to build about 10,000 new affordable rental homes under the NRAS would open on 7 May and close on 6 August 2013.

“The much anticipated fifth round is worth about $1 billion over 10 years, staggered to provide organisations adequate time to apply, and ensure the pace of delivery of NRAS homes does not slow down.”

“We want to move as quickly as possible to build new homes in areas that are most in need, and to give the business and community sector more certainty for the future.”

“I have worked closely with my state and territory counterparts, to make sure we can open the fifth round of NRAS incentives as soon as possible and those discussions were finalised at today’s COAG Select Council on Housing and Homelessness.”

The Round 5 for dwellings to be delivered in 2015-16 with applications opening on 7 May and closing on 6 August 2013.

Mr Butler said the National Rental Affordability Scheme was a critical part of the Australian Government’s efforts to help Australians struggling in the housing market.

“We know that housing affordability is a concern for many families right across Australia and we’re investing heavily to address that concern,” Mr Butler said.

“This Government has responded with more than $20 billion worth of measures to help people with home ownership and more affordable rental housing.”

Under the National Rental Affordability Scheme, the business and community sectors receive financial incentives to build new homes and rent them to low and middle income households at a rate that is at least 20 per cent below the market rate.

“Already, more than 12,000 homes have been built under the National Rental Affordability Scheme, with close to 28,000 under way,” Mr Butler said.

“This latest round of incentive allocations will aim to deliver the last 10,000 homes, to reach our goal of 50,000 new more affordable rental homes by 30 June 2016.”

For more information on Round 5 of the National Rental Affordability Scheme, go to www.fahcsia.gov.au/nras