State Govt cancels boost to First Home Owner Grant

Stock image.
Stock image.

IN a blow to first-home buyers, the State Government has announced the $5000 boost to the First Home Owner Grant will end on June 30, ahead of schedule.

The boost, announced by the previous government in December 2016, increased the grant payment from $10,000 to $15,000 on purchases of new homes, and had been scheduled to end on December 31, 2017.

Treasurer Ben Wyatt said the boost was not an effective mechanism for stimulating additional construction of homes and given the disastrous state of State finances, any ineffective spending needed to be removed.

“Ceasing the boost early will allow the State Government to fund higher priority areas while ensuring WA first-home buyers continue to be eligible for generous government assistance,” he said.

“This action represents another $20 million saved over the forward estimates; it’s another step towards budget repair.”

First-home buyers will continue to be eligible for the $5000 boost payment if they enter into a contract to purchase or build a new home before June 30.

Owner-builders also remain eligible if they start laying foundations before that date.

From July 1, first-home buyers purchasing or constructing a new home will remain eligible for the $10,000 First Home Owner Grant.

Eligible first-home buyers purchasing a new or established home will continue to be exempt from duty on homes valued up to $430,000 or vacant land valued up to $300,000, and to receive a concessional rate of duty on homes valued up to $530,000 or vacant land valued up to $400,000.

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