By JOHN VAN KLAVEREN
Police will investigate allegations of “unscrupulous persons or entities” defrauding Geelong investors in a $4.5 billion National Rental Affordability Scheme (NRAS).
Parliamentary secretary to the Minister for Social Services, Concetta Fierravanti-Wells, said Geelong investors should be wary of claims that properties had NRAS incentives.
The scheme provides investors with tax breaks reaching $10,000 for dwellings with affordable rent for low-income tenants such as students.
But “unscrupulous entities” in Geelong had falsely claimed some properties had NRAS incentives, Ms Fierravanti-Wells said.
“Over recent weeks we have become aware of criminal and civil complaints also being made by parties affected by the alleged events.
“It has also been alleged that some parties have falsified correspondence from the department in order to convince potential investors that the incentives are legitimate. This may mean that in some cases investors may have paid large sums of money for nothing.
“The government warns investors, developers and charitable organisations to be wary of committing any funds towards a dwelling under NRAS without first verifying with the department that the property in question is indeed eligible for an incentive.”
Sen Fierravanti-Wells said she was concerned about a new “grey-market” in traded incentives.
Applicants with a reserved NRAS allocation must “use it or lose it” by 23 December, she said.
After the deadline most applicants would be unable to sell a reserved NRAS allocation or transfer it to another dwelling, she said.
The Department of Social Services posted a cautionary note to developers, investors and charitable organisations about the trading of NRAS incentives.
“Be extremely careful before agreeing to pay any funds in respect of a transaction involving an allocated or reserved incentive,” the post read.
“If you have paid money and subsequently discovered that you have been taken advantage in this way, we recommend that you seek legal advice and or report it to the police.
“We would recommend that you do not agree to the payment of any funds until you have received direct confirmation from the Department that an NRAS incentive allocated to) a particular dwelling.”
NRAS properties have been advertised at Geelong Golf Club and Armstrong Creek estates.
Deakin University built more than 300 NRAS-subsidised beds for students at its Waurn Ponds campus.
A $100 million waterfront student housing project is on hold until the NRAS issues are resolved.
