The Australian Govt wants to give you over $113,000 in tax free incentives over the next 10 years

Written on the 28th of July 2011 by James Cagney

The National Rental Affordability Scheme, called NRAS, is a Government program that will pay YOU tax free incentives of approximately $113,000 over a 10 year period when you purchase an approved  investment  property. What a great opportunity to stop bleeding those tax dollars to the Australian Tax Office (ATO).The government is tackling the huge shortage of affordable rentals on a national level. The NRAS program has been designed to focus on affordable housing and not social housing. The government does not want to repeat the problems that it created when it constructed public housing in the past to cope with affordable rental demand. Therefore, the Government is enlisting the support of the public to provide these dwellings by providing substantial incentives to property investors. These dwellings are build up areas of high rental demand and where often the rent is higher than the medium rent in Australia. Only people who earn moderate incomes can apply for the reduced rentals. Specific areas with occupations that are in high demand but where incomes are no high are targeted by the government e.g. enrolled nurses, article clerks, trainees, apprentices, business lower skilled workers, labourers, retail sales people, police officers, paramedics, fire-fighters etc. For example, a couple with three kids, earning a gross income of $101,561 per annum, is eligible to rent an NRAS dwelling. The program is ideal for single income families because if the spouse goes back to work part time the income levels for NRAS tenants are generous and allow for tenant salary and wages increase of 25% above the entry income level. .

This incentive to investors is provided annually on the condition that throughout the ten year period the dwelling is rented at 20% below the market rent to assist moderate-income households. The tax incentive is indexed annually at the CPI rate - this is how you can receive over $113,000 over  a 10 year period from the government.  

Due to the recent natural disasters around the country the federal government announced in January 2011 that NRAS funding is to be partially diverted for rebuilding affected areas. This has now cut the overall NRAS allocation by 15,000 houses and $264 million.  The Government has confirmed its commitment to funding for 35,000 NRAS properties. it is estimated that over 9,000 have already been approved, with many more under consideration from the government. The bad news is when the national limit has been reached that 's it. So take the opportunity and get in quick before the allocation is gone.

This NRAS incentive partly paid by the Federal Government is a tax offset not a tax deduction. A tax offset is of greater benefit because it is a direct reduction in the tax payable whereas a tax deduction is a reduction in the taxable income which is then taxed. This tax offset from the Federal Government is a refundable tax offset. While most
tax offsets can only reduce your tax payable to zero, according to the Australian Tax Office, ‘refundable tax offsets' can reduce the amount of tax you are liable to pay to an amount less than zero, which results in a refundable amount. The State Government incentive is also a tax free incentive and is paid by way of cash /cheque.

The investor’s rent out their property through the NRAS scheme providing a 20% discount on rent. The incentive in 2010/ 2011 financial year equates to $9,140 tax-free. The value of the incentive is adjusted yearly in accordance with the rent portion of CPI - using the weighted average of the eight capital cities across Australia in the given year.

So you get guranteed tax incentives for a ten year period so you can stop bleeding all the those tax dollars  that you are paying right now . Plus, you get the capital growth on the property for the 10 year period as well i.e. a $400 000 property over the ten year period you could double your money to around $800 000 - How good is that! 

It sure beats any savings plan you may have in mind or any hot tip you have on the Stock market , doesn't it ?  Wise property investors are taking advantage of this incentive right now. Many of these investors are buying multiple properies and know the value of capital growth and the $113,000 incentive on each investment property -it's a "no brainer". Hurry you do not have time to waste - get on board now.  The government has no more money to increase this incentive or extend the program. When the money is all gone - it's all gone.

In addition to this the Queensland State Government is giving away, from 1 August 2011 to the end of January 2012, $10,000 each on new properties valued under $600,00. This is called the Queensland Building Boost (QBB) and it will kick-start the construction industry and in particular South East Queensland (SEQ) where the need for affordable housing is greater. So this is what you stand to make over 10 years:

NRAS $130 000 + Capital Gain $400 000 + QBB $10,000 = Profit $540,000 ....OR.......you can make ($ 000,000) over that period if you do nothing - it's your choice and yours alone.     Lyndon B. Johnson, a former president of the United States of America, said "Yesterday is not ours to recover, but tomorrow is ours to win or to lose". To learn more about the QBB $10, 000 please click >>>>>here.

Send an email to jfc@jamescagney.com.au OR click >>>> here to find out more details about the NRAS incentive or go to www.jamescagney.com.au . Do not procrastinate because when the allocated funds are finished you will be too late . This is your opportunity to make money and you will have made a great investment for your future. ACT NOW!