EXPLANATORY STATEMENT
National Rental Affordability Scheme (Household Types) Determination 2009
The National Rental Affordability Scheme (Household Types) Determination 2009 (the Determination) is made under subregulation 19 (5) of the National Rental Affordability Scheme Regulations (the Regulations). Subregulation 19(5) of the Regulations provides that the Secretary may, by legislative instrument, change from time to time, any or all of the household types, income limits, or upper income limits mentioned in the table in subregulation 19(4) of the Regulations.
Background
The National Rental Affordability Scheme Act 2008 (the Act) enabled the establishment of the National Rental Affordability Scheme (the Scheme) in regulation, providing conditions for applications, assessment, allocation and eligibility for incentive. The Scheme is intended to encourage the development of affordable rental housing by offering conditional incentives to individuals and entities providing new rental housing to low and moderate income households.
The Act provides conditions of allocation, which include that an approved rental dwellings be rented to tenants of a kind prescribed by the Regulations. The Regulations prescribe eligible tenants by reference to household types and income limits specified in the table in subregulation 19(4).
Purpose
The purpose of the Determination is to extend the household types specified in item 2 of the table in subregulation 19(4) to include two single persons with no children. This will enable two single persons with no children who are tenants of an approved rental dwelling and who satisfy the income limits specified in column three for item 2 household types, to be eligible tenants for the purposes of the Scheme.
Retrospectivity
This instrument has effect from 1 July 2008, as that is the date on which the National Rental Affordability Scheme commenced. The retrospective commencement of this instrument is beneficial and will advantage approved participants in the National Rental Affordability Scheme.
Consultation
No consultation in relation to the changes was entered into. However, the need for the change was identified following queries from approved participants in the Scheme.
The change will not result in any disadvantage to any person or entity. The change will advantage participants and potential tenants for approved rental dwellings in the Scheme by broadening the categories of eligible household types to include two single persons with no children.
Regulatory Impact Analysis
The Determination does not require a Regulatory Impact Statement (RIS) or a Business Cost Calculator Figure. The Determination is not regulatory in nature, will not impact on business activity and will have no, or minimal, compliance costs or competition impact. It is not expected that any compliance costs will be incurred by business, as a result of this Determination, against the nine categories listed in the Business Compliance Cost Checklist contained in the Best Practice Regulation Handbook prepared by the Office of Best Practice Regulation.
Overview
The National Rental Affordability Scheme (Household Types) Determination 2009 was enacted to address a specific gap within the National Rental Affordability Scheme, which was established under the National Rental Affordability Scheme Act 2008. This Act was introduced to encourage the development of affordable rental housing by providing conditional incentives to individuals and entities who supply new rental housing to low and moderate-income households. The determination was made under the National Rental Affordability Scheme Regulations, specifically pursuant to subregulation 19(5), which allows the Secretary to modify household types, income limits, or upper income limits over time. The objective of the Determination is to expand the types of households eligible for the Scheme to include two single persons with no children, thereby broadening the categories of eligible tenants. This legislative instrument has retrospective effect from 1 July 2008, the date on which the Scheme commenced, and is designed to benefit approved participants by providing them with greater flexibility and eligibility within the Scheme.
Scope and Application
The National Rental Affordability Scheme (Household Types) Determination 2009 applies to the conditions governing the eligibility of tenants under the National Rental Affordability Scheme as stipulated in the National Rental Affordability Scheme Regulations. This Determination specifically extends eligibility to include two single persons with no children who meet the specified income limits. The geographic and jurisdictional reach of this legislation is national, as it is enacted under the Commonwealth's authority through the National Rental Affordability Scheme Act 2008. The Act aims to promote the development of affordable rental housing by providing incentives to individuals and entities who offer rental housing to low and moderate-income households. The Determination, which came into effect retrospectively from 1 July 2008, the commencement date of the Scheme, does not introduce any new disadvantages to existing participants or entities. Instead, it broadens the categories of eligible household types to include two single persons with no children, thereby enhancing the inclusivity and potential benefits of the Scheme for eligible tenants.
Key Provisions
The National Rental Affordability Scheme (Household Types) Determination 2009 (Determination) introduces specific provisions under subregulation 19(5) of the National Rental Affordability Scheme Regulations. The primary operative sections of this Determination are those that modify the types of households eligible for the Scheme by including two single persons with no children (s. 2). This change is made to extend eligibility to these household types, who must meet the specified income limits for the household types listed in subregulation 19(4) of the Regulations. The Determination aims to enhance the inclusivity of the Scheme by recognising the housing needs of individuals who live alone and have no dependents.
The Act imposes specific obligations and requirements on the parties involved in the Scheme. For instance, it mandates that approved rental dwellings be rented to tenants who fit the prescribed household types and income limits (s. 4 of the Act). By extending the household types to include two single persons with no children, the Determination ensures that these individuals can now apply and qualify for the Scheme if they meet the stipulated income criteria. This extension broadens the scope of who can benefit from the incentives provided by the Scheme, thus encouraging more diverse participation in the development of affordable rental housing.
Under the Act, there are potential civil and criminal consequences for breaches of the Scheme's conditions. While specific offences and penalties are not detailed within the Determination, the overarching Act outlines various infractions that could lead to penalties. These might include fines or other sanctions for non-compliance with the Scheme’s requirements or for misrepresentation of eligibility. The penalties can vary depending on the severity of the breach, but the overarching intent is to ensure adherence to the Scheme’s conditions to maintain the integrity of the incentive program. This legal framework ensures that the Scheme operates effectively and fairly, benefiting those who genuinely need affordable rental housing.