More affordable rental properties to be made available

Low to moderate income earners could move into more affordable housing within weeks under a scheme agreed to by parliament.

The National Rental Affordability Scheme (NRAF) is aimed at providing 50,000 new rental dwellings over the next four years.

The scheme provides federal rebates of $6,000 per dwelling each year for 10 years, and a further $2,000 from states and territories, provided the property is rented to low or moderate income earners at 20 per cent below market rates.

Federal Housing Minister Tanya Plibersek described the government’s $623 million commitment as a “revolutionary” approach to boosting affordable housing.

“It’s very important to expand … the mainstream private rental market,” Ms Plibersek told reporters Monday.

“We are expecting to be able to move the first families into those homes in coming weeks and months.”

The opposition supported the bills but voiced concern that there are no criminal penalties for tenants who lie about their incomes to access the housing.

Liberal Senator Gary Humphries said if this happens only the landlord has committed a crime.

“There are no circumstances where the tenant may be prosecuted,” Senator Humphries said.

The federal government did not address this concern.

The amendments, backed by the Australian Greens, ensure that one fifth of the rebates be made available for projects of not less than 20 dwellings.

The amendments also ensure all properties are eligible for federal government solar panel and hot water rebates.

The amendments were not agreed to during the committee stage.

The National Rental Affordability Scheme Bill 2008 and National Rental Affordability Scheme (Consequential Amendments) Bill 2008 passed the Senate on Monday.

The federal government says it will commit funding for a further 50,000 properties if future demand for the scheme is strong.

AAP

1 Comment

Brad August 19, 2009

Governments pat themselves on the Back, aren’t they good. Collect Taxes from us poor soles then give it back for people to have a home.
Governments role should be limited to make certain that Land is available to build on and provide the services. Not to hand out money to make the end product home or rental more expensive. The old story give two people the 21,000 grant and you increase the price of the house by 21,000. This is all the governments have done. The simple solution, spend the money on the Land release and the services needed. That is the Governments role provide the services not to give people funds to go out and bid up home prices.

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