- April 23, 2014
- Posted by: Rogers Property Group
- Category: Latest News
The current Liberal government has frozen the current round of NRAS applications. The NRAS scheme has long been criticized for not working and allowing those people who are not eligible tenants to exploit the system and gain access to NRAS housing.
The NRAS scheme which was implemented by the previous Labor government has been noted as being “unsustainable” and is costing the average tax payer too much to support. What is quite disturbing is that the scheme has allowed wealthy foreign students to access cheap housing at the expense of average tax paying Australians. The scheme has been described as “rushed in design and implementation, and includes design flaws, ambiguous legal requirements and red tape.” While the idea behind it is good, the previous Labor government did not design and test it correctly and it has lead to tax payers money being wasted.
NRAS costs over $4.5 billion and the Liberal government is trying to reduce that expenditure. A recent report said that while the scheme was aimed to help low income workers, almost 10% of all applicants are wealthy foreign students.
For property investors, the scheme has worked in many ways, however from a greater economic perspective it has really been a failure due to poor implementation from the previous government.