What is the incentive and how is it paid?

The incentive is payable annually and is subject to all legislative requirements being meet. The Incentive is indexed annually to the weighted average rental component of CPI for the eight capital cities. The current Incentive comprises:

1. an Australian Government contribution in the form of a refundable tax offset to the value of $8,452.94 (current for the 20/21 NRAS year) per year for each individual dwelling for 10 years; and
2. a State or Territory Government contribution to the value of $2,817.65 (current for the 20/21 NRAS year) or more in the form of a payment or other in-kind support per dwelling per year for 10 years.

This will change 1 May each year in line with the weighted average CPI rental component movement for the eight capital cities.

National Rental Incentives may be apportioned, withheld, offset or withdrawn in the event of failure to comply with requirements under the Scheme, for example, but not limited to, where:

1. the tenancy arrangements in respect of an approved rental dwelling infringe on State or Territory Government regulatory requirements;
2. the approved participant rents the approved rental dwelling to an ineligible tenant;
3. the approved participant sells or otherwise disposes of an approved rental dwelling and does not substitute another equivalent property in its place;
4. an approved rental dwelling is vacant for more than 13 weeks in an NRAS year (cumulatively) or more than 13 weeks continuously;
5. an approved rental dwelling is not rented at least 20 per cent below current market rates for equivalent dwellings (can be higher for some dwellings); or
6. any special conditions on the approved rental dwelling are not met.