The Claim
“Scrapped the National Rental Affordability Scheme.”
Original Sources Provided
✅ FACTUAL VERIFICATION
The claim is factually accurate. The Coalition government did scrap the National Rental Affordability Scheme (NRAS) in 2014 [1][2].
Key facts verified:
- NRAS was established by the Rudd Labor government in 2008 as a flagship rental affordability program [3][4]
- The Abbott Coalition government announced in November 2014 that it would not proceed with Round 5 of NRAS, effectively ending the scheme [1][2]
- The scheme provided tax incentives and direct subsidies to encourage construction of affordable rental housing, with approximately 20,000 properties approved under the first four rounds [4]
- Round 5 would have delivered an additional 10,000 affordable rental homes according to sector estimates [1]
The Herald Sun article confirms that Social Services Minister Kevin Andrews announced the government would "axe the National Rental Affordability Scheme," with the article noting concerns from welfare groups that this would lead to more homeless people [1].
Missing Context
The claim omits several important pieces of context:
1. NRAS was widely criticized as poorly designed:
The Coalition government, citing independent analysis, described NRAS as "poorly designed, with multiple flaws, ambiguous legal requirements and red tape" [2]. The Grattan Institute, an independent think tank, described the scheme as "fundamentally flawed" [3].
Key design problems included:
- Complex legal arrangements that made properties difficult to manage
- Unclear responsibilities between housing providers, investors, and tenants
- Administrative burden and compliance costs
- Mixed results in actually delivering affordable housing [3]
2. The program had delivery challenges:
While NRAS was intended to deliver 50,000 affordable rental properties over time, the scheme faced implementation difficulties. By the time the Coalition ended it, approximately 20,000 properties had been approved, but many faced administrative and management issues [4].
3. Budgetary context:
The Coalition's decision to scrap NRAS came during a period of broader budget consolidation following the 2014 Budget. The government was seeking savings across multiple portfolios, and the housing sector was one area where cuts were made [5].
4. Ongoing commitments were honored:
The government stated that existing NRAS agreements (Rounds 1-4) would continue to be honored. The scrapping specifically related to not proceeding with Round 5 of new agreements [2].
5. Alternative approaches were being considered:
The Coalition indicated it would work with states and territories on "long-term future of not just homelessness but housing more broadly" [5], suggesting an intent to pursue different housing affordability mechanisms.
Source Credibility Assessment
Herald Sun (News Corp Australia):
The Herald Sun is a major metropolitan newspaper in Melbourne, owned by News Corp Australia. It is generally considered a mainstream commercial news outlet with conservative editorial leanings.
- Credibility: Mainstream media outlet with established journalistic standards
- Bias considerations: News Corp publications have historically supported conservative/Liberal-National governments, though this article reports critically on a Coalition decision
- Format: News reporting (not opinion piece)
- Verification: The core facts reported align with government announcements and other sources
The article appears to be factual reporting of the government's announcement, including quotes from both the government and welfare sector critics.
Labor Comparison
Did Labor have similar housing program controversies?
Search conducted: "Labor government housing affordability programs criticism NRAS"
Finding: Labor created NRAS but also had other housing policy challenges:
NRAS itself was Labor's program: The National Rental Affordability Scheme was launched by the Rudd Labor government in 2008 as its flagship rental affordability initiative [3][4]. The fact that the Coalition scrapped it doesn't negate that Labor had previously implemented it.
Labor's broader housing record: The Labor government (2007-2013) also established the National Partnership Agreement on Homelessness (NPAH) in 2009 [5]. However, Labor's housing affordability policies faced criticism for:
- Not keeping pace with rising housing costs
- Insufficient supply-side responses to housing affordability
- Administrative complexity in programs like NRAS [3]
Both parties struggled with housing affordability: Neither Labor nor the Coalition has been able to significantly improve rental affordability in Australia. Both governments have faced criticism from housing advocates for insufficient investment in social and affordable housing.
Key context: While the Coalition scrapped NRAS, the scheme itself was Labor's creation. The Coalition's criticism of the program's design flaws is supported by independent analysis [3]. This is a case of one party ending another party's program due to perceived design flaws, rather than a unique Coalition policy position.
Balanced Perspective
While the claim that the Coalition scrapped NRAS is factually true, the full story includes both legitimate criticisms of the decision and the government's stated rationale.
Criticisms of the scrapping:
- Welfare groups argued that ending NRAS would reduce supply of affordable rental housing [1]
- The Australian Council of Social Service (ACOSS) and other advocates warned this would increase homelessness [1]
- Round 5 would have delivered an estimated 10,000 additional affordable rental properties
- The decision came at a time of growing rental stress in Australian cities
Government's stated rationale:
- The scheme was "poorly designed" with "multiple flaws, ambiguous legal requirements and red tape" [2]
- Independent analysis (Grattan Institute) supported this assessment, calling NRAS "fundamentally flawed" [3]
- The government indicated it would pursue alternative approaches to housing affordability
- Existing agreements were maintained - only new Round 5 agreements were cancelled
Broader context:
- Housing affordability has been a persistent challenge across multiple governments
- Both Labor and Coalition have struggled to deliver effective rental affordability programs
- The Coalition's decision to end a poorly-performing Labor program and seek alternative approaches is a normal part of policy transitions between governments
- The fundamental challenge - insufficient affordable rental housing supply - remained unaddressed by both parties' approaches
Key context: This is not unique to the Coalition - both major parties have implemented and terminated housing programs. Labor created NRAS (with design flaws noted by independent experts), and the Coalition ended it (while maintaining existing commitments). Neither party has successfully solved Australia's rental affordability crisis.
TRUE
6.0
out of 10
The claim that the Coalition "scrapped the National Rental Affordability Scheme" is factually accurate. The Abbott government announced in November 2014 that it would not proceed with Round 5 of NRAS, effectively ending the program [1][2].
However, the claim lacks important context:
- NRAS was widely criticized (including by independent think tanks) as poorly designed and flawed [3]
- The scheme was created by the previous Labor government - the Coalition ended a Labor program, not one of its own making
- Existing agreements were honored - only new round was cancelled
- Both parties have struggled with housing affordability policy
The framing implies a negative action unique to the Coalition, when in reality this was termination of a flawed predecessor program with bipartisan housing policy challenges.
Final Score
6.0
OUT OF 10
TRUE
The claim that the Coalition "scrapped the National Rental Affordability Scheme" is factually accurate. The Abbott government announced in November 2014 that it would not proceed with Round 5 of NRAS, effectively ending the program [1][2].
However, the claim lacks important context:
- NRAS was widely criticized (including by independent think tanks) as poorly designed and flawed [3]
- The scheme was created by the previous Labor government - the Coalition ended a Labor program, not one of its own making
- Existing agreements were honored - only new round was cancelled
- Both parties have struggled with housing affordability policy
The framing implies a negative action unique to the Coalition, when in reality this was termination of a flawed predecessor program with bipartisan housing policy challenges.
📚 SOURCES & CITATIONS (5)
-
1
heraldsun.com.au
Heraldsun Com
-
2
formerministers.dss.gov.au
Formerministers Dss Gov -
3
grattan.edu.au
Low income earners are struggling with high housing costs and there are widespread calls for governments to help. But the last major effort, the National Rental Affordability Scheme (NRAS), was fundamentally flawed.
Grattan Institute -
4
en.wikipedia.org
Wikipedia
-
5
abc.net.au
Kevin Andrews announces $115m from Federal Government to extend homelessness agreement with states
Abc Net
Rating Scale Methodology
1-3: FALSE
Factually incorrect or malicious fabrication.
4-6: PARTIAL
Some truth but context is missing or skewed.
7-9: MOSTLY TRUE
Minor technicalities or phrasing issues.
10: ACCURATE
Perfectly verified and contextually fair.
Methodology: Ratings are determined through cross-referencing official government records, independent fact-checking organizations, and primary source documents.