Today, July 1, is the start of a new financial year. It also marks the end of the National Rental Affordability Scheme, which once provided more than 35,000 affordable rental homes across the country.

The scheme was introduced by the Rudd government in 2008 in response to declining affordability. But it was later axed by the Abbott government in 2014, with no new dwellings approved after 2016. This June, the final 3,600 properties left the scheme.

In the end, the scheme did deliver on some of its main promises. It increased the supply of affordable rental housing – in a relatively short period of time – and delivered dwellings that would not otherwise have been built.

But it wasn’t without vocal critics, who pointed out a range of flaws in the way it was run and the outcomes it delivered. So, looking back, what can we learn from this experience? And has the government done enough to fill the gap left by this program?

Cheaper rents for an overlooked group

The scheme offered a financial incentive for developers to deliver affordable rental housing. This was in the form of indexed tax incentives which by 2026 equated to more than A$13,000 per dwelling.

Dwellings had to be new and rented out at less than 80% of the local median rent.

These incentives were limited to ten years, so properties have been gradually leaving the scheme since 2018. The final round of properties approved in 2016 left this year.

To be........

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