The Prime Minister has announced the National Rental Affordability Scheme which is designed to create a new ‘asset class’ of affordable rental
properties.

Under the Scheme, the Commonwealth will provide private investors
with tax credits of $6,000 a year for ten years for new properties that
are rented at 20 per cent below the prevailing market level.

States and Territories have agreed to provide $2,000 per home
either through cash payments or in kind, such as via the provision of
cut price land or concessions on stamp duty.

The initiative would mean, for example, that rent on a new average
three bedroom unit would fall for $350 a week to $280 a week – a $70
saving.