Q.1 Who will rent my property?
A.1 Your property will primarily be offered to rent by Queensland government employees in the “Essential Services” sectors such as nurses, members of the police force, fire fighters and teachers. It will also be available via a government head lease to low and middle-income earners, who can more easily afford the lower rentals.
Q.2 Can I invest in a second hand property under the NRAS program?
A.2 No. All NRAS properties must be brand new and purchased direct from the developer.
Q.3 Will my NRAS property be located in a subdivision where properties are all rented out?
A.3 No. NRAS properties will be in amongst subdivisions where the properties are available to both owner-occupiers and investors.
Q.4 Will my NRAS property be located in Housing Commission areas?
A.4 No. NRAS properties will be scattered throughout new subdivisions, where the properties are available to owner-occupiers and investors in both NRAS and non-NRAS properties.
Q.5 Will investing in an NRAS property affect my capital gains?
A.5 Your NRAS property will be in a subdivision where it will be difficult, if not impossible to differentiate between the types of ownership. Accordingly, differences in capital gains are highly unlikely.
Q.6 How does the NRAS indexation of the incentive work?
A,6 The NRAS Incentive is indexed according to movements in the Rents component of the Housing Group Consumer Price Index for the year, December quarter to December quarter as at 1 March, using the weighted average rate of eight capital cities housing component, and is effective from 1 May.
City (State) Percent
Sydney (New South Wales) 8.0
Melbourne (Victoria) 6.6
Brisbane (Queensland) 10.1
Adelaide (South Australia) 5.4
Perth (Western Australia) 12.2
Hobart (Tasmania) 5.0
Darwin (Northern Territory) 12.0
Canberra (Australian Capital Territory) 8.4
The Rents Component, weighted average of eight capital cities for the 2008/9 year (as shown above) is 8.4%. The incentive value for the current NRAS Year (FY2011/12) has been increased to $9,524.00.
Q.7 Who can claim for benefits under the NRAS Program?
A.7 An individual, corporate tax entity or superannuation fund is entitled to claim a Refundable Tax Offset provided that:
• it has been issued with a certificate by the Housing Secretary under the NRAS, and
• the income year begins in the NRAS year to which the certificate relates.
Q.8 Is my NRAS Refundable Tax Offset only available as a tax credit or can I also receive cash?
A.8 If your NRAS Refundable Tax Offset reduces your tax liability below zero, to produce an amount refundable, you will receive a Tax Refund from the Australian Tax Office (ATO). E.g. If at the end of a financial year, in which you own a qualifying NRAS property, you are assessed as owing $1,000 to the ATO, it will be deducted from the NRAS Refundable Tax Offset applicable in that year, and the ATO will send you a Tax Refund for the balance (which would currently be $8,524 (from A.6 above)).
Graeme Shiels - Mobile: 0417 725 168
Licensed Real Estate Agent and Managing Director