Cheap rentals may be on the way

• Affordability scheme aims to provide 50,000 new rentals
• Properties will rent at 20pc below market value
• More property news in our Money section

LOW  to moderate income earners could move into more affordable housing within weeks under a scheme agreed to by parliament.

The National Rental Affordability Scheme (NRAF) is aimed at providing 50,000 new rental dwellings over the next four years.

The scheme provides federal rebates of $6000 per dwelling each year for 10 years, and a further $2000 from states and territories, provided the property is rented to low or moderate income earners at 20 per cent below market rates.

Federal Housing Minister Tanya Plibersek described the Government's $623 million commitment as a "revolutionary'' approach to boosting affordable housing.

"It's very important to expand ... the mainstream private rental market,'' Ms Plibersek said.

"We are expecting to be able to move the first families into those homes in coming weeks and months.''

The Opposition supported the bills but voiced concern that there are no criminal penalties for tenants who lie about their incomes to access the housing.

Liberal Senator Gary Humphries said if this happens only the landlord has committed a crime.

"There are no circumstances where the tenant may be prosecuted,'' Senator Humphries said.

The Federal Government did not address this concern.

The amendments, backed by the Australian Greens, ensure that one fifth of the rebates be made available for projects of not less than 20 dwellings.

The amendments also ensure all properties are eligible for federal government solar panel and hot water rebates.

The amendments were not agreed to during the committee stage.

The National Rental Affordability Scheme Bill 2008 and National Rental Affordability Scheme (Consequential Amendments) Bill 2008 has passed the Senate.

The Federal Government says it will commit funding for a further 50,000 properties if future demand for the scheme is strong.