Further amendments to the NRAS Regulations to create additional protections for investors

Further amendments to the NRAS Regulations have been introduced to place new obligations on approved participants to provide additional protections for NRAS investors.

It is important to note the new obligations inserted by the amendments will only apply prospectively, that is, they will apply in relation to an investor who enters into a contractual arrangement with an approved participant on or after 21 December 2017.

The information sheet below describes the new amendments in detail.

Independent Inquiry

On 14 December 2017, the Government announced an independent investigation into complaints against approved participants in the Scheme.

The investigation is in direct response to the concerns raised by NRAS investors that include delays in passing on incentives and the business practices of some approved participants.

Further details of the independent investigation are available on the Department’s website.

Amendments to the NRAS Regulations to create protections for investors

The National Rental Affordability Scheme Regulations 2008 have been amended to provide, for the first time, protections for NRAS investors.

The amendments introduce a power for the Secretary of the Department of Social Services (or her Delegate) to transfer an allocation attached to an approved rental dwelling from one approved participant to another, if certain grounds exist. These grounds include, but are not limited to, instances where approved participants are not passing on the NRAS incentive to the NRAS investor (where there is a contractual arrangement to do so) within a reasonable time of receiving the incentive, or where the actions of an approved participant have contravened a consumer protection law in relation to the NRAS allocation.

The transfer can be initiated by the Department or at the request of an investor.

The information sheet below describes the new amendments in detail.

For more information relating to the NRAS legislative framework please visit the NRAS – legislation, regulations and policy guidelines page.

How do I apply for the allocation attached to my approved rental dwelling to be transferred to another approved participant?

The information sheet below describes the process for submitting an application to transfer the allocation attached to your rental dwelling to another approved participant. The Department encourages NRAS investors to familiarise themselves with the process to request a transfer before considering or completing an application to transfer the NRAS allocation attached to their approved rental dwelling to another approved participant:

Investors must complete the ‘Investor application to transfer an allocation to another Approved Participant’ form in order to make an application to transfer the allocation attached to their approved rental dwelling to another approved participant. This form must be used in conjunction with the ‘Guidelines for Completing an Investor Application to Transfer an Allocation to another Approved Participant’:

Note: Where an investor believes grounds for a transfer exist, it will be incumbent on them to put forward a case to the Department to support their claim the allocation should be transferred. This will include providing relevant documentary evidence to support the grounds for requesting the transfer.

Completed applications should be sent to nras@dss.gov.au(link sends e-mail)

If you are unable to submit your application form and supporting evidence via email, please post your completed application form and supporting documentation to NRAS – Payments, Compliance and Communications, Department of Social Services, GPO Box 9820, Centre ACT 2610.