CORPORATE Australia has flocked to a Rudd government offer of tax breaks in return for construction of low-cost rental accommodation, joining community housing providers in proposing 13,000 new low-rental dwellings in the next year.
The Rudd Government has received 244 proposals under the first round of its national rental affordability scheme and expects to be able to offer low-rent properties to battling families within months.
Under the scheme, a key Labor election promise, investors will earn federal and state tax breaks worth $8000 a year on each dwelling for a decade.
In return, they must rent the properties to eligible low-income earners for 20 per cent less than the commercial market rental rate, The Weekend Australian reports.
The guidelines for the scheme mean about 1.5 million people will be eligible to apply for the cheap rent.
As the Real Estate Institute of Australia and the Australian Council of Social Service applauded the move yesterday, Housing Minister Tanya Plibersek said she was delighted with the number of applications for the first round of funding, which closed 10 days ago.
Ms Plibersek said 244 applications had been lodged proposing to build 12,770 new dwellings in the first year of the scheme.
The Government will approve 3500 new dwellings initially, followed by 7500 next year and 25,000 in the following two years.
"I expect we`ll be able to turn some keys in front doors certainly this financial year," Ms Plibersek said.
She said existing market forces in the real estate sector had failed low-income earners.
Government intervention would bring rental accommodation within the reach of thousands of low-income families.
"For the vast majority of people, once they are in the market when it comes to buying their own homes, they are all right," she said.
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