Approved Participant Information Sessions – Frequently Asked Questions
- When does an approved participant need to provide a TDA form to the Department?
A TDA is required when there are changes to the rent charged, changes in household composition or changes in the household income.
- Can TDAs submitted to the Department not be checked and locked when submitted to the Department?
Thischange is scheduled to be released as part of the IT enhancementsin July 2018.
- What does the Department consider as acceptable income evidence for the Tenant Demographic Assessment (TDA)?
Approved participants need to be satisfied they have taken reasonable steps to accurately determine household income. Examples of acceptable evidence include but are not limited to: payment summaries; Notice of Assessments; Centrelink payslips; and bank statements.
- When does a tenant become an existing tenant?
The tenant becomes an existing tenant on the day they move into the dwelling.
- When does a tenant become ineligible?
An existing tenant becomes ineligible when the combined gross income exceeds the household allowable income limit by 25 per cent or more for two consecutive eligibility years.
- What requirements does the Scheme have to determine initial tenant eligibility?
The requirements for eligible tenants are outlined in the NRAS Legislation, specifically Regulation 19 of the NRAS Regulations. Eligibility relates to combined household income.
Tenants of an approved NRAS dwelling will become eligible tenants “if their combined gross income for the 12 months prior totheir entry does not exceed the income limit for their household”.
Further information regarding tenant eligibility can be found on an Information Sheet on the Department’s website.
- How do approved participants determine tenant eligibility up to the lease start date (at point of entry)?
Approved participants must be satisfied that they have taken reasonable steps to determine a potential tenant’s income for the 12 months prior to their start date.
Approved participants should request income documentation from potential NRAS tenants in order to assess the gross household income and substantiate tenant eligibility under the NRAS Regulations.
Tenants should be made aware that approved participants are required to substantiate the gross household income details to the Commonwealth in order to meet NRAS regulatory requirements.
It is the approved participant’s responsibility to ensure that the tenant’s incomeis below the specified income limit. Please note, the Department may require evidence of a tenant’s income prior to their start date to determine whether a dwelling is eligible to receive an NRAS incentive.If the tenant is deemed ineligible at point of entry, the dwelling is ineligible for an incentive for the period of time that the ineligible tenant resides in the dwelling, in line with the Regulations.
- How do approved participants determine ongoing tenant eligibility?
Approved participants are required to collect or assess 12 months of the tenant’s household income not only prior to point of entry, but also for continuing eligibility thereafter for 12 months prior to the anniversary of the tenant’s start date.
- What are the requirements for valuers?
Consistent with Regulation 18(1) of the NRAS Regulations, a valuer must adopt the professional practice standards of the Australian Property Institute (API).
The valuer must be registered in the state the dwelling is located. Where the states and territories do not have a requirement for registration or licensing with a professional organisation, the Department requires valuers to be a current (and at a minimum) associate member and hold the relevant certification to perform a valuation on a residential property. Valuers that hold a student or provisional membership must have the valuation co-signed by a certified valuer (associate level or above).
- Are desktop valuations acceptable?
Desktop valuations are only acceptable for Year 5 and Year 8 valuations. For first year valuations, desktop valuations will not be accepted.
- If an incorrect MRV has been uploaded, is the Department able to accept a second MRV (the correct one)?
- The Department accepts the first valid MRV lodged by the approved participant. Once an approved participant lodges an MRV with the Department, the Department assesses it and it is this MRV which will be used for ongoing compliance requirements. Lodging multiple MRVs for the same prescribed NRAS year does not have the effect of removing the original MRV, which was assessed as valid by the Department.
- Can an MRV have a single value for multiple properties?
Yes, as long as the MRV clearly outlines which dwellings are rented out at which amounts.
- Will the Department accept an MRV where it stipulates a furnished or unfurnished valuation amount for a dwelling?
Yes, the MRV can specify what the value of the dwelling is furnished or unfurnished.However, the MRV needs to stipulate what state the dwelling is being rented at (whether the dwelling is being rented as a furnished dwelling or unfurnished).
- When does CPI need to be applied?
CPI applies to rent values for the years where an MRV is not required (years 2, 3, 4, 6, 7, 9 and 10). On these interim years, the market value rent is indexed on the anniversary of the first available for rent date (AFAR) for the dwelling and can be increased or decreased by the NRAS market index, which is the CPI value for the capital city where the dwelling is located. When the next MRV is due, the rent is then re-baselined in accordance with the new valuation provided.
To assist approved participants with the application of CPI, the NRAS Portal has been updated to display the CPI indexed rent amount under the dwelling details. In addition, the CPI values (as a percentage) for the capital city where the dwelling is located are published on the DSS Website.
- Can I see when my incentives have been processed?
Yes, information of when an incentive is processed can be found on the DSS website. The report displays dwelling ID, incentive value and the date the incentive was processed.This report is updated monthly during the incentive processing period.
- If dwellings are exiting the Scheme early in the NRAS Year, for example June 2018, is there a mechanism for submitting the Statements of Compliance (SoCs) for these dwellings when they exit rather than waiting until the end of the NRAS Year (in this example, May 2019)?
Currently there is no mechanism for submitting SoCs before the end of the NRAS Year. As per subregulation 17(2) of the NRAS Regulations, SoCs must be lodged between 1May and 30 June after the end of the NRAS year for which the approved participant wishes to receive an incentive or by the later date (if the Secretary approves a later date under sub regulation (2A) or (2B)). The Department will look into this matter further.
- What is the approved participant’s role when an investor submits an application to transfer the allocation attached to their rental dwelling to another approved participant?
You may have been contacted by NRAS investors who have submitted an investor application requesting the Secretary transfer the allocation attached to their rental dwelling to another approved participant. Where the Secretary considers the transfer of an allocation to another approved participant, the Department will compile a list of approved participants the allocation may be transferred to, based on location, incentive period, State/Territory consultation and capacity.
The Department will write to these approved participants to advise they have been suggested as an appropriate approved participant and seeking their consideration to be nominated by the investor. If an approved participant is willing to be accept the allocation if the Secretary decides to transfer the allocation, they should complete, signed and return the formal declaration.
Once approved participants provide their formal declaration, the Department will provide approved participant details to the investor who will then contact approved participants to discuss how they administer NRAS allocations and their associated fees and charges. Investors will be invited to nominate their preferred approved participant that the allocation may be transferred to.
If you are the approved participant the Secretary decides to transfer the allocation to, you will be advised in writing once the transfer has been completed in the NRAS Portal.
Please note: The application to transfer the allocation in no way guarantees that the Secretary will decide to transfer the allocation. If you enter into a contractual arrangement with the investor for the compliance and/or tenancy management of their approved rental dwelling, based on the assumption the Secretary will approve the request, you do so at your own risk.