For nearly two decades, the National Rental Affordability Scheme (NRAS) served as a vital pillar of the Australian affordable housing ecosystem. By incentivizing private investors and community housing organizations with annual government offsets, the program brought tens of thousands of discounted rental dwellings to the market.
However, with the scheme officially closing its doors on June 30, 2026, thousands of tenants across the country are navigating a challenging transition. This guide details how the scheme operated, what led to its conclusion, the legal rights and protections available to transitioning tenants, and the alternative affordable housing programs currently available.
What Was the National Rental Affordability Scheme?
The National Rental Affordability Scheme (NRAS) was a joint initiative between the Australian Federal Government and state/territory governments. Launched in 2008, its primary goal was to address the supply deficit of affordable rental housing for low-to-moderate-income Australians.
Unlike public housing, which is owned and run by state governments, NRAS operated through the private sector. The government issued “allocations” to approved participants—such as private property investors, institutional developers, and non-profit community housing providers—who agreed to build new properties and rent them to qualified low-income tenants.
In exchange, landlords received a substantial annual tax offset or direct payment, known as the NRAS incentive, for a maximum term of 10 years per property.
How NRAS Worked
The program functioned as a tripartite arrangement involving tenants, landlords (investors), and approved housing providers. Here is the operational breakdown:
- Rent Discount: Properties under the scheme were leased at a minimum of 20% below the fair market rent value of the property in the local area. Market valuations were periodically conducted by independent licensed valuers to ensure compliance.
- Annual Government Incentives: Approved participants received a yearly financial reward. In the final years of the scheme, this was valued at over A$11,000 per property per year, indexed annually to the rental component of the CPI. The incentive was split: 75% was provided by the federal government as a refundable tax offset, and 25% by the state or territory government in the form of cash or direct in-kind support.
- Compliance Framework: The Department of Social Services (DSS) monitored properties to ensure they met strict eligibility checks, tenancy laws, and rent limits.
Who Was Eligible?
To qualify for an NRAS tenancy, households had to meet strict gross income limits. These limits depended on the composition of the household and were indexed on May 1 of each year.
Importantly, the scheme assessed both initial entry limits and upper eligibility limits. If a household’s income grew during their tenancy, they did not lose eligibility unless their income exceeded the upper limit (which was 25% higher than the entry limit) for two consecutive assessment years.
| Household Composition | 2025–26 Initial Income Limit (Entry) | 2025–26 Upper Income Limit (Exit) |
|---|---|---|
| One Adult | $62,794 | $78,493 |
| Sole Parent (1 child) | $66,046 | $82,558 |
| Two Adults (No children) | $86,818 | $108,523 |
| Two Adults & 1 Child | $107,650 | $134,563 |
| Each Additional Adult | +$24,024 | +$30,030 |
| Each Additional Child | +$20,832 | +$26,040 |
Is NRAS Still Available?
No. The NRAS has officially concluded.
Because individual allocations lasted for exactly 10 years, properties have been progressively exiting the scheme since 2018. The Abbott-Hockey federal budget in 2014 stopped any further funding allocations, meaning no new dwellings could be registered after the initial rounds finished. The final remaining allocations reached the end of their 10-year limit on June 30, 2026, bringing the scheme to its final, complete close.
For tenants, this means:
- No New Properties: You cannot find or apply for an NRAS property anymore.
- Rent Adjustments: Landlords are no longer restricted to the 20% discount. They may increase rents to align with the surrounding market.
- Lease Transitions: While landlords cannot break an existing fixed-term lease to raise the rent, they can offer new leases at market rates or choose to exit the rental market entirely once the lease ends.
Alternatives to NRAS
While the end of the NRAS creates challenges, several other support programs exist to assist low-to-moderate-income renters in Australia:
1. Community Housing
Community housing represents long-term rental housing managed by non-profit organizations. Learn about eligibility registers and state resources in our detailed Community Housing Australia Guide. It serves a similar cohort to the NRAS, capping rent at either a percentage of market value (e.g., 74.9%) or as a proportion of household income (typically 25% to 30%).
2. Commonwealth Rent Assistance (CRA)
This is a fortnightly payment from Services Australia to help cover rental costs. You can read how it is calculated in our detailed Commonwealth Rent Assistance Guide. Eligible tenants receive 75 cents for every dollar of rent paid above a minimum threshold, up to a maximum cap. For a single person with no children, the maximum payment stands at $219.40 per fortnight (as of March 2026). Seniors and retirees can find detailed payment breakdowns and calculators in our Affordable Rentals for Pensioners guide.
3. Build-to-Rent Initiatives
To stimulate housing supply, several state governments are offering tax concessions to institutional investors who develop Build-to-Rent projects. In exchange, these developments are often required to reserve a percentage of apartments (typically 10% to 20%) for affordable housing options.
4. State Housing Authorities
State governments manage public and social housing registries. To understand the registries, check our Social Housing Australia Guide. While waitlists can be long, individuals experiencing severe rental stress, homelessness, or pension status are often given priority access (see how this works for pensioners in our Seniors Housing Guide or calculate your housing stress score in our Rental Affordability Guide).
NRAS vs. Community Housing
To help navigate the differences, here is a comparison between how the NRAS worked and how Community Housing functions:
| Feature | National Rental Affordability Scheme (NRAS) | Community Housing (Registered Providers) |
|---|---|---|
| Property Ownership | Mostly private individual investors or institutional developers. | Owned by governments, trusts, or non-profit providers. |
| Rent Calculation | At least 20% below the local market rental value. | Typically 25% to 30% of gross household income, or capped at 74.9% of market rate. |
| Tenancy Duration | Tied to standard commercial leases; properties left after 10 years. | Generally long-term or permanent housing security. |
| Funding Model | Government tax offsets and incentives for 10 years. | Government grants, charity offsets, and reinvested rental yields. |
| Asset Tests | Income assessed annually, no direct asset limit. | Varies by state, but strict asset and income limits apply. |
Frequently Asked Questions
Is the National Rental Affordability Scheme (NRAS) still operating?
No, the National Rental Affordability Scheme (NRAS) has officially concluded. The final remaining allocations exited the scheme on June 30, 2026, ending the program in its entirety after its scheduled 10-year term.
What was the exact end date of the NRAS?
The NRAS officially ended on June 30, 2026. All dwellings under the program have transitioned out, and property owners are no longer bound by NRAS guidelines.
Why did the government decide to end the NRAS?
NRAS was designed from its inception in 2008 as a temporary 10-year incentive scheme. The federal government decided in 2014 to stop issuing new allocations (with no new allocations since 2015) and allow existing allocations to wind down progressively as their 10-year terms ended.
Can I apply for a new NRAS property in 2026?
No. Because the scheme has completely ended, it is no longer possible to apply for or rent an NRAS-subsidized property. You must seek alternative affordable housing programs.
What happens to my rent now that my property has exited the NRAS?
Once a property exits the scheme, the landlord is no longer required to offer the 20% discount. Rent can be raised to the full market value, subject to your state or territory’s standard rental laws regarding rent increases and notice periods. You can measure your current stress score using our interactive Rent Affordability Calculator.
Can my landlord increase my rent immediately after the NRAS ends?
Any rent increase must comply with state tenancy regulations, including minimum notice periods (typically 60 days) and restrictions on how often rent can be increased. Landlords cannot unilaterally breach an active fixed-term lease to raise rent.
How much cheaper was NRAS rent compared to market rent?
Under NRAS guidelines, approved participants were required to lease properties to eligible low-and-moderate-income tenants at a rate at least 20% below the assessed market rental value.
Who was eligible for NRAS housing?
Eligibility was based on gross household income. Households had to prove their income was below specific regional thresholds both at the start of the tenancy and annually thereafter.
What were the historical income limits for NRAS eligibility?
For the final 2025–26 NRAS year, the initial income limit was $62,794 for a single adult, $66,046 for a sole parent with one child, and $24,024 for each additional adult.
If my income exceeded the eligibility limit during my tenancy, was I evicted?
No. Tenants were permitted to exceed the initial entry limits by up to 25% (the upper limit) in subsequent years. A household only became ineligible if their gross income exceeded this upper limit in two consecutive eligibility assessments.
How did the NRAS incentive work for property investors?
Investors received an annual National Rental Affordability Scheme Incentive, consisting of a federal government refundable tax offset (RTO) and state/territory cash or in-kind support, in exchange for renting properties at discounted rates.
What was the value of the annual NRAS incentive for landlords?
In the final years of the scheme, the combined annual incentive exceeded A$11,000 per dwelling, indexed yearly with CPI.
How long did the NRAS incentive last for each property?
The incentive was paid for a maximum of 10 years per registered dwelling, starting from the date the property was first leased under the scheme.
What is the difference between NRAS and Community Housing?
NRAS was an incentive scheme for private landlords and institutional investors. Community Housing is run by registered non-profit organizations that manage properties specifically for low-income or vulnerable individuals.
What is the difference between NRAS and Social Housing?
Social housing is public housing owned directly by state governments, or community housing run by non-profits. NRAS properties were privately owned, but regulated by federal housing rules. Learn about waitlists and applications in our detailed Social Housing Australia Guide.
What replaces the NRAS in 2026?
There is no direct federal replacement. Instead, governments are investing in the Social Housing Accelerator, the Housing Australia Future Fund (HAFF), state Build-to-Rent schemes, and Commonwealth Rent Assistance for eligible recipients.
What is Commonwealth Rent Assistance, and how do I get it?
Commonwealth Rent Assistance (CRA) is a fortnightly payment from Services Australia for people who receive eligible Centrelink benefits and rent in the private market or community housing. You can view 2026 payment thresholds in our pensioner rental guide.
Are there state-level affordable housing schemes available?
Yes. Every state offers affordable and public housing pathways. For example, NSW has state-sponsored affordable housing lists, and Queensland Health/Housing departments run specific local initiatives.
What is the Build-to-Rent initiative in Australia?
Build-to-Rent involves institutional developers constructing apartment blocks specifically to rent them out long-term, rather than selling individual units. Some states require a portion of these blocks to be designated as affordable housing.
Can pensioners get priority for affordable housing?
Yes. Pensioners are often prioritized by state housing registries and community housing providers under specific seniors and low-income pathways. Review your housing options and calculate pension packages in our Affordable Rentals for Pensioners guide.
What happens if I refuse to sign a new non-NRAS lease?
If your NRAS lease expires and you do not sign a new lease, the tenancy will either roll onto a periodic lease or terminate, depending on standard tenancy rules and notifications.
How did the NRAS help reduce rental stress?
By discounting rent by at least 20% below the local market average, NRAS properties kept rental costs below the 30% gross income threshold for low-income workers.
Did the NRAS apply to both apartments and houses?
Yes. NRAS allocations covered a variety of property types, including single-bedroom apartments, townhouses, and family suburban houses.
Who managed the NRAS properties on a day-to-day basis?
Day-to-day management was handled by approved NRAS housing providers or private real estate agents contracted by the property owners.
Where can I find help if my NRAS tenancy is ending and I have nowhere to go?
You should contact local tenancy advocacy groups, your state’s department of housing, or community housing providers like Mission Australia, Anglicare, or local housing trusts.