August 2017

NRAS Information Sheet

Amendments to NRAS Regulations – Vacancy Periods

The National Rental Affordability Scheme Regulations 2008 (NRAS Regulations) have been amended to provide greater flexibility around issuing proportional incentives for dwellings with vacancy periods of 26weeks or more across two NRAS years.

Prior to the amendment to the NRAS Regulations

One of the conditions that must be satisfied in order for an approved participant to be eligible to receive an NRAS incentive is that a dwelling must not be vacant for longer than 26 weeks in one NRAS year; or for longer than a continuous period of 26 weeks across two NRAS years.

Prior to this amendment, if a dwelling was vacant for a continuous period of 26 weeks or more across two NRAS years, the approved participant would not have been eligible to receive an NRAS incentive in either year.

Amendment to the NRAS Regulations

The National Rental Affordability Scheme Amendment (Administrative Processes) Regulations 2017 repeals the current sub-regulation 16(1D) and replaces it with the following:

To the extent that the rental dwelling is not rented during an NRAS year (the relevant NRAS year) that falls within the incentive period—the dwelling must not be vacant for:

(a)a period of more than 26 weeks during the relevant NRAS year (whether or not the period is continuous); or

(b)a continuous period of more than 26 weeks that:

(i)begins no more than 26 weeks before the end of the previous NRAS year; and

(ii)ends in the relevant NRAS year.

This new sub-regulation ensures that:

  • If the continuous vacancy period runs for 26 weeks or more in the first NRAS year and that period extends into the next NRAS year, the approved participant will not be eligible to receive an NRAS incentive in the first NRAS year, but will be eligible for a proportionally reduced NRAS incentive in the second NRAS year (unless the dwelling is also vacant for 26 weeks or more in the second NRAS year), provided the other conditions of allocation are satisfied for the second NRAS year.
  • If the continuous vacancy period of 26 weeks or more runs for less than 26 weeks in the first NRAS year and continues into the second NRAS year, the approved participant will be eligible to receive a proportionally reduced NRAS incentive in the first NRAS year (provided the other conditions of allocation are satisfied for the first NRAS year), but will not be eligible to receive an NRAS incentive in the second NRAS year if total continuous period is greater than 26 weeks.

When will this amendment take effect?

This amendment will take effect as of 15 July 2017 and will apply retrospectively as of the NRAS year that commenced on 1 May 2016 (i.e. as of the 2016-17 NRAS year, and each NRAS year thereafter).

This means that any continuous vacancy periods of 26 weeks or more that commenced on or after 1May 2016 will be assessed under this new sub-regulation 16(1D).

Examples

The examples in the table below show how this new sub-regulation 16(1D) will operate. Please note 13weeks is equivalent to 91 days and 26 weeks is equivalent to182 days.

Year One Vacancy Period / Year Two Vacancy Period / Outcome
Vacant for 80 days
(80 days is less than 13 weeks) / Continuing vacancy for a further 120 days, with no further vacancies in year two. / Incentive not affected in year one, and no incentive in year two.
Vacant for 100 days
(100 days is more than 13 weeks, but less than 26 weeks) / Continuing vacancy for a further 100 days, with no further vacancies in year two. / Proportionally reduced incentive in year one (i.e. proportionally reduced by 9 days (100-91 allowed vacancy days=9 days)), and no incentive in year two.
Vacant for 183 days
(183 days is more than 26 weeks) / Continuing vacancy for a further
10 days, with no further vacancies in year two. / No incentive in year one, and a proportionally reduced incentive in year two (i.e. proportionally reduced by 10 days).
Vacant for 183 days
(183 days is more than 26 weeks) / Continuing vacancy for a further 10days, with a cumulative vacancy period of 90 days in year two. / No incentive in year one, and a proportionally reduced incentive in year two (i.e. proportionally reduced by 10 days). No impact for cumulative vacancy period in year two as it is less than 91 days.
Vacant for 183 days
(183 days is more than 26 weeks) / Continuing vacancy for a further 10days, with a cumulative vacancy period of 100 days in year two. / No incentive in year one, and a proportionally reduced incentive in year two (i.e. proportionally reduced by 19 days (10 for the continuous vacancy and 9 for the cumulative vacancy in excess of 91 days)).
Vacant for 183 days
(183 days is more than 26 weeks) / Continuing vacancy for a further 10days, with a cumulative vacancy period of 185 days in year two. / No incentive in year one, and no incentive in year two due to total vacancies in excess of 182 days in year one and year two.

Further information

The National Rental Affordability Scheme Amendment (Administrative Processes) Regulations 2017 are available on the Federal Register of Legislationat: https://www.legislation.gov.au/Details/F2017L00921

Further enquiries on this amendment or any other aspect of the Scheme can be sent to .

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