Telephone : (08) 9386 2288
Email : info@tailormadefs.com.au
Web : www.tailormadefs.com.au
Q. How Is The NRAS Incentive Paid?
The NRAS incentive is paid as follows:
• a Federal Government Contribution in the form of a refundable tax
offset or payment, currently $6,855 – ¾ of $9140 (indexed annually);
and
• a State/Territory contribution currently to the value of $2,285 – ¼ of
$9140 (indexed annually)
• The Incentive is provided on a pro rata basis for the number of days
in the NRAS year (1 May – 30 April) that the approved rental dwelling
was available for rent and complied with all Scheme requirements.
(Reference: NRAS Policy Guidelines - Section 4)
Federal Component ($6,855):
• Paid as a Refundable Tax Offset (RTO). Refundable tax offsets can
reduce tax liability below zero, to produce an amount refundable.
The process for claiming the tax offset is as follows:
• Approved Participants (Tailormade Financial Strategies – with
KPMG acting on behalf of Tailormade Financial Strategies) provide
an Annual Statement of Compliance to FaHCSIA by 13 May each
year, comprising information for the previous NRAS year (the year
that ended on the preceding 30 April);
• the Secretary of FaHCSIA will issue tax offset certificates under
NRAS to compliant Approved Participants (Tailormade Financial
Strategies – with KPMG acting on behalf of Tailormade Financial
Strategies) will then pass on the certificate to investors specifying
the value of the Australian Government component of the Incentive
for each approved rental dwelling for the NRAS year (Reference: NRAS
Policy Guidelines – Sections 8.2 & 8.3)
Federal Component ($6,855 - Continued):
The taxpayer’s share of NRAS tax offset is written on tax form
as shown below:
Form Located at: www.ato.gov.au /Individuals/Forms & Services /Tax Return
for individuals (supplementary section) NAT 2679
State Component ($2,285):
• Paid as cash to Approved Participant (Tailormade Financial
Strategies – with KPMG acting on behalf of Tailormade Financial
Strategies ) between July and September each year
• KPMG will be acting on behalf of Tailormade Financial Strategies for
all compliance reporting, receipt and passing on to investors the
NRAS state component and Refundable Tax Offset Certificates.
• KPMG will distribute the WA State cash payment and pass on the
Refundable Tax Offset Certificates to the investors.
• This payment is treated as non-assessable non-exempt income for
tax purposes (Tax Free). (Reference: NRAS Policy Guidelines – Section 4.3)
Q.
Can Investors Submit a Variation to
Reduce Their PAYG Tax Payments?
• Yes, a PAYG Withholding Variation Application Form can be
filled out for NRAS properties to the extent of the tax deductible
expenses as usual for negatively geared properties, but not to
include the NRAS incentive
Form located at: www.ato.gov.au /Individuals/Forms & Services/PAYG Withholding
Variation Application 2011 NAT 2036
Q.
Can an Approved Rental Dwelling be sold before
the 10 year Incentive period has lapsed?
• Yes, although approved rental dwellings generally are expected to
be kept in the Scheme for the full incentive period, that is, the 10
year period for which the Incentive is payable.
• Where dwellings are sold within that period, they may either be
eligible to be retained in NRAS (and continue to attract an Incentive)
or not eligible to remain in NRAS, depending on the circumstance of
the sales. Where dwellings are sold or otherwise removed from the
Scheme and not eligible to remain in NRAS, Incentives will not be
paid for the NRAS year in which the sale or removal occurred.
(Reference: NRAS Policy Guidelines - Section 11.1)
Q.
Can an Approved Rental Dwelling be sold before
the 10 year Incentive period has lapsed? Continued
• Dwellings under the Scheme may be sold to tenants, other
individuals or organisations which are not and do not seek to be
Approved Participants. In this situation it is expected that the
Approved Participant may wish to offer to provide a substitute
dwelling, or dwellings as the case may be, and continue to receive
the National Rental Incentive in respect of those dwellings for the
remaining part of the original 10 year incentive period.
(Reference: NRAS Policy Guidelines - Section 11.2)