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NRAS Payments

Discussion in 'Accounting & Tax' started by smallbuyer, 26th Jun, 2015.

  1. smallbuyer

    smallbuyer Well-Known Member

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    Anyone still not received their NRAS payments? If not what reasons are you being given for it taking so long or are you getting a refusal to pay?

    I think the actions of the government with regards to NRAS have been disgusting and they need to be brought to heel about both taking a very long time to pay and moving the goal posts.
     
  2. The Falcon

    The Falcon Well-Known Member

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    I have been following these threads on SS and it seems a complete palaver re NRAS payments....add that to the entry price and it makes it all seem unattractive.
     
  3. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    My final client NRAS cert info arrived a week ago. That is appalling.
     
  4. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    I'm not sure its the Govt but the poor compliance by NRAS providers in meeting and satisfying the Govt rules. The Govt probably didn't want another insulation fiasco and so they actually checked compliance rather than assume its OK. That and the state govt alignment makes it a complex baby to bath.
     
  5. Jamie_

    Jamie_ Well-Known Member

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    Cmon Paul, it's much easier to just blame the government :p
     
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  6. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    You are spot on. Tonys fault
     
  7. smallbuyer

    smallbuyer Well-Known Member

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    From what I hear they changed things a lot. Make some new rules, enforced other rules they did not enforce before. They have made providers lives a nightmare and given them a huge amount of extra work.

    If something has been operating a certain way for years my understanding is there is an implied agreement to operate that way even if the actual contract says something a little different if they have accepted x in the past to suddenly start demanding y retrospectively that is unfair.

    I’m sure the person who allegedly overcharged rent by $2 and know may lose $10000 feels they have been treated unfairly.

    I should point out I have NRAS but have received mine, I am still pissed off with how long it took though and the whole process, not knowing how long it would take and if you would even get it.


    Smallbuyer
     
    Last edited: 26th Jun, 2015
  8. trinity168

    trinity168 Well-Known Member

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    Hi SmallBuyer,

    What changes to the rules are you aware of? I suppose the government can not do such retrospectively.

    Thanks.
     
  9. BazWami

    BazWami Member

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    still waiting for my certificate......always been told my IP is compliant.....
     
  10. smallbuyer

    smallbuyer Well-Known Member

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    Hello Trintiy168,

    Im not an expert but here is quote from a provider about why they are having some issues which looks like a change of the rules to me. They are making old claims comply with new rules so it seems like changing the rules retrospectively to me. They are having other issues but this seems to be a big one.

    “a material change in the definition of Market Rent introduced by DSS in the amended NRAS Regulations released in November 2014, causing some properties which were compliant under the regime in place during NRAS 2013-14 to now be deemed non-compliant”

    Smallbuyer
     
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  11. trinity168

    trinity168 Well-Known Member

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    Hi smallbuyer,

    Hmm... that is disappointing if that is the case. Or, perhaps they are just tightening up on the rules. Who knows ...

    Thanks.

    Cheers.
     
  12. smallbuyer

    smallbuyer Well-Known Member

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    I would say people signed up with NRAS with the certain rules and conditions and those shouldnt be changed once they have started the agreement. You cant have a contracted agreement and changing the rules while it is running is just not on. By all means if the government wants to release new NRAS with new rules thats fine, people will know what they are signing up to.

    With regards to how strictly they wish to apply the rules or how they wish to interpret them that's is up to them. I would say however if the rules where applied a certain way in the past they shouldn't change how they apply them in the past, only for the future. This is particularly relevant if it can result in huge penalties for buyers for something that was not an issue when the event occurred.

    I also note the government has advised payments would be made around a certain time of year (and have done that in the past) but due to their system changes and bungling (IT stuff up etc!) they have delayed payments for 9 months.

    All seems rather unfair to me. Im sure it has cost the Libs the votes of quite a few NRAS owners.

    Smallbuyer
     
  13. BazWami

    BazWami Member

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    finally received my certificate today......won't hold my breath for this years!!!!!!!!!!
     
  14. trinity168

    trinity168 Well-Known Member

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    Shouldn't be changing the rules when you are already in the game. But, we don't have any politicians here in PChat so ...
     
  15. Maltee

    Maltee New Member

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    Hi,
    I thought this might be the right thread to share my NRAS story.
    We signed up for an NRAS duplex in Mackay in March 2014, completed all paperwork and payments promptly along the way. The Property was completed in September but delayed by Mackay Regional Council for a Plumbing issue that had been acceptable up to that point. The property was finally handed over to us in January. Because of this we missed the NRAS deadline of 22nd of December. The provider was required to submit a request for extension, which was a formality I was told and many other requests for extension have been granted. Now we are in July and no answer has been received either way, the provider tells me it is very difficult to get information from DSS and DSS won't even talk to me about the issues because I'm not a provider. If I put a tenant in place I lose my right to NRAS but the longer the delay goes on the less value the NRAS incentive is to me. I'm reluctant to pull out as the approval could come tomorrow, I have no way of knowing.
    I can wear the fact that Mackay property values and rental yields have fallen in the time since we signed up, that was our investment decision, but the cashflow position this bereaucratic malaise puts us in is intolerable. An indication from the department that the delay is temporary or that we no longer qualify would be nice but I can't even get that.
    Are they deliberately delaying things for budgetary reasons? Is it just us? I understand this was not a Coalition policy and that they are not going to continue with it but this is not an ethical way to deal with people. Thanks for letting me rant.
    Mal
     
  16. trinity168

    trinity168 Well-Known Member

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    Thanks for sharing your story Maltee. Do you have any other communication channels available to you for your concern?
     
  17. smallbuyer

    smallbuyer Well-Known Member

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    Thats a really sad story Maltee. You would think they would allow you to rent it at 80% of market rent until its approved or not, and backdate the nras start date if approved. That would be fair but the govt aint fair :(
    From what i hear they are really bad at communicating information to people and take forever to give a response about anything.
     
  18. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    There is a question mark over tax deductions. Was the property available for rent. Your intention may well be clear but was the property actually available ? Esp if it wasn't NRAS ready. ???? Messy.

    My understanding is NRAS providers have a tonne of non-compliance concerns and to avoid a repeat of the insulation debacle that Govt insisted on Dept Human Services (new modern name for Centrelink / DSS) auditing every application and final claim and ensuring the provider and property is compliant. This compliance crosses Federal and State checks. I don't know who is more at fault - DHS or some NRAS providers who were accused of being sloppy with compliance. I'm sure each will blame the other.

    One of reasons I don't like NRAS is the middlemen. There are several - None of whom owe you any responsibility. Perhaps you should arrange a discussion with your local Federal member with all documents. They can make enquiries though Scott Morrisons office (Minister) or the Assistant Minister and it can be surprising how they can clear a log jam.
     
  19. smallbuyer

    smallbuyer Well-Known Member

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    Good idea see if the local member will put some pressure on the Department. Never know your luck.
    Paul i am also curious what the ATO says about an NRAS property awaiting NRAS approval/activation. Does this count as available to rent for the ATO? I would say its available pending govt paperwork.
     
  20. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    I would say you need a private ruling or take a risk. You are in no mans land. I could argue either way but ATO would argue it not available if its untenantable. You said you cant put nras in.