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National Rental Affordability Scheme Bill 2008

Part 2 The National Rental Affordability Scheme

Division 1 Making the National Rental Affordability Scheme

5   Making the National Rental Affordability Scheme

                   To further the objects of this Act, the regulations must prescribe a Scheme (the National Rental Affordability Scheme ) about the following matters:

                     (a)  the approval of participants ( approved participants ) by the Secretary;

                     (b)  the approval of rental dwellings by the Secretary;

                     (c)  providing incentives to an approved participant if certain conditions are satisfied;

                     (d)  a matter required or permitted by this Act to be included in the Scheme;

                     (e)  ancillary or incidental matters.

6   Other matters that may be included in the National Rental Affordability Scheme

                   The National Rental Affordability Scheme may provide for any or all of the following matters:

                     (a)  the application process for an allocation;

                     (b)  the assessment criteria for an allocation (which may vary from time to time);

                     (c)  the amount of an incentive;

                     (d)  how the market value rent of a rental dwelling for an NRAS year is to be determined.



 

Division 2 Allocation process

7   Making allocations

             (1)  The National Rental Affordability Scheme must provide for the Secretary to make an allocation for an incentive period in respect of a rental dwelling:

                     (a)  on the conditions set out in subsection (2); and

                     (b)  on the condition that an incentive may be offset or recouped in the circumstances provided for by the Scheme; and

                     (c)  on any other conditions provided for by the Scheme.

             (2)  The conditions are that:

                     (a)  either:

                              (i)  the rental dwelling has not been lived in as a residence at any time before the first day of the incentive period; or

                             (ii)  the rental dwelling was unfit for anyone to live in, and since the day on which it has been made fit for living in, it has not been lived in as a residence between that day and the first day of the incentive period; and

                     (b)  to the extent that the rental dwelling is rented during an NRAS year that falls within the incentive period—both:

                              (i)  the rental dwelling is rented to a tenant or tenants of a kind prescribed by the regulations; and

                             (ii)  the rent that is charged for the rental dwelling is, at all times during the year, at least 20% less than the market value rent for the dwelling; and

                     (c)  to the extent that the rental dwelling is not rented during an NRAS year that falls within the incentive period—the dwelling is not vacant:

                              (i)  for longer than the period prescribed by the regulations; and

                             (ii)  for longer than a continuous period prescribed by the regulations that begins in the previous NRAS year and ends in the first-mentioned NRAS year.

             (3)  To avoid doubt, for the purpose of subparagraph (2)(a)(i), if a dwelling or building has been converted to create additional residences, then a part of the dwelling or building that is capable of being lived in as a separate residence must not have been lived in as a separate residence before the first day of the incentive period.

8   Variations, transfers and revocations of allocations

                   The National Rental Affordability Scheme may provide for and in relation to the following:

                     (a)  the variation of an allocation in certain circumstances;

                     (b)  the transfer of an allocation to another approved participant in certain circumstances;

                     (c)  the revocation of an allocation in certain circumstances;

                     (d)  how such a variation, transfer or revocation is to be made.



 

Division 3 Receiving incentives

9   Eligibility for receiving incentives

                   The National Rental Affordability Scheme must provide for the Secretary to do the following in relation to an allocation:

                     (a)  issue a certificate to an approved participant of a kind provided for by the Scheme that states the National Rental Affordability Scheme Tax Offset that is claimable in relation to an NRAS year;

                     (b)  make a payment to an approved participant of a kind provided for by the Scheme for an NRAS year.