Rental affordability scheme

Incentives for private and institutional investors were announced in the Budget to make rental housing available to low and middle income earners. An annual incentive of $6,000 per property will be paid by refundable tax offsets, for up to ten years, to complying institutional investors and by grants to exempt not-for-profit housing organisations.

Additionally, State and Territory governments have agreed to provide annual support of at least $2,000 per annum per property for up to 10 years. This contribution will take the form of cash grants, concessions on stamp duty or the provision of discounted land.

To qualify for these grants, rental properties must be made available to tenants at 20 per cent below the market rate of equivalent properties in the area. These grants only apply to new properties and must be applied for before construction of the property.

If you are considering making a rental property available to a low/middle income earner to help them in the increasingly difficult rental market, contact Saward Dawson and we would be pleased to help you investigate the options.

Published : June 18 2008