- NRAS is managed by organisations called NRAS Approved Participants
- Investors buy NRAS pre-approved properties and own them directly
- Investors sign management contracts with NRAS Approved Participants to receive their tax offsets
Due to the large scale nature of the NRAS program, individual investors cannot directly apply to the Government for their property to be included in the Scheme. Instead, NRAS is managed by organisations known as NRAS Approved Participants. NRAS Approved Participants apply for lots of at least 20 properties to be approved for inclusion in NRAS. The Government then approves properties based on certain criteria, such as location and value.
These properties are then constructed by a developer and sold to individuals. The individual investor directly owns the property just like any normal investment property. To maintain eligibility for NRAS, the investor signs a management agreement with the NRAS Approved Participant and agrees to rent the property at 20% below market rent. The NRAS Approved Participant is then responsible for finding eligible tenants for the property, and for undertaking a yearly audit of the property to ensure the property and the tenant are meeting the NRAS criteria.
Once the yearly audit is completed, the NRAS Approved Participant provides the investor and the Government with certification. The investor then submits the NRAS Federal Government Tax Offset Certificate with their tax return and receives the NRAS tax offset.