Govt cuts ‘a blow to cheap housing'

PROPERTY News


The Australasian Housing Institute has voiced serious concern over the Australian Government’s cut to the National Rental Affordability Scheme (NRAS).

The federal government has recently announced a major reduction in funding for the program, which offers a subsidy for the development of affordable rental housing by private or non-profit housing developers in the form of a tax credit from the Commonwealth, and state government support, valued at about $9,000 a year for 10 years. The government has announced it will cut 15,000 incentives, or $265 million, from NRAS over five years in order to help fund the cost of the Queensland floods recovery effort.
Institute CEO Joan Ferguson said the NRAS is widely popular within the social and affordable housing sector. “Among our members the NRAS has a reputation as an example of truly innovative policy making on the part of the federal government,” Ms Ferguson said.
“It is the first major attempt to facilitate much needed investment in the development of affordable housing by non-government players. “The 15,000 property incentives cut from the NRAS represent billions of dollars of potential investment in the construction of affordable housing.
“This is a great loss not only to the many Australians living in housing stress, but also to the building industry – one of the great drivers of growth in our economy and crucial to the reconstruction effort in Queensland.
“I urge the federal government to reconsider these cuts and restore the NRAS to the promised targets,” Ms Ferguson said.