Nearly 200,000 Australians take up First Home Owners Boost

New figures out today show the Nation Building Economic Stimulus Plan continues to support housing sector jobs and first home buyers, with more than 190,000 Australians using the First Home Owners Boost to the end of October.

Today’s figures show the first month of the First Home Owners Boost after it began to phase down at the end of September.

From October 1, the Boost reduced from $14,000 to $10,500 for existing homes, and from $21,000 to $14,000 for new homes. The Boost will end on December 31, before reverting to the $7,000 First Home Owners Grant.

The Rudd Government put in place economic stimulus to support jobs during the global recession. By design, stimulus will be gradually withdrawn as the economy recovers. That is why the First Home Owners Boost was designed to phase down from October.

ABS Building Approvals data released this week shows the seasonally adjusted estimate for total dwelling units approved in October was up 11.7 per cent compared to October 2008.

The Rudd Government is pleased with the success of the First Home Owners Boost, with 190,050 first home buyers entering the market since October 14 last year.

A strong housing market is critical for underpinning confidence and supporting jobs in the Australian economy as we battle the worst global recession in 75 years.

The First Home Owners Boost, combined with historically low interest rates, has helped tens of thousands of Australians realise their dream of home ownership. It is also creating jobs for our builders and tradespeople when we need them the most.

The Government’s plan for the housing sector reaches beyond support for first homebuyers. As the First Home Owners Boost winds down, the $5.7 billion social housing stimulus is building 19,200 homes across the country.

The social housing program – estimated by Treasury to support 15,000 jobs nationally over the next two years – will provide stimulus for the housing sector right through 2009 and 2010.

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