Media Release by The Hon Tanya Pibersek MP

First home owners benefit from Government boost

New figures out today show that nearly 30,000 Australians received the Rudd Government’s First Home Owners Boost in its first three-and-a-half months of operation.

The $1.5 billion First Home Owners Boost is part of the Rudd Government’s $10.4 billion Economic Security Strategy announced on October 14 last year to strengthen the Australian economy during the global financial crisis.

New figures show that 29,489 first home buyers entered the property market by the end of January using the First Home Owners Boost.

Under the scheme:

  • First home buyers who purchase established homes will have their grant doubled from $7,000 to $14,000; and
  • First home buyers who purchase a newly constructed home will receive an extra $14,000 to take their grant to $21,000.

In October, the Government took early and decisive action to maintain confidence in the housing and construction sector through the First Home Owners Boost.

The First Home Owners Boost, combined with low interest rates, has attracted tens of thousands of first home buyers into the market. Increased first home buyer activity means more jobs right across the economy.

Oct-08 88 18 11 0 0 0 0 4 121
Nov-08 2,076 814 1,428 297 481 115 102 72 5,385
Dec-08 3,840 2,124 2,377 1,255 949 270 201 114 11,130
Jan-09 4,434 2,921 2,616 1,248 949 377 223 85 12,853
Total 10,438 5,877 6,432 2,800 2,379 762 526 275 29,489

ABS Housing Finance data for the month of December showed a 6.4 per cent increase in the number of new home loans for owner occupiers.

Even more encouraging was the 15.1 per cent increase in loans to purchase new dwellings and a just under 10 per cent increase in loans to construct new dwellings.

The First Home Owners Boost is a key component of the Rudd Government’s comprehensive housing package, which will boost rental stocks, help people save for their first home and lower housing infrastructure costs for some entry level housing.

In addition, the Government’s Nation Building and Jobs Plan will provide for the construction of 20,000 new social housing dwellings for low-income Australians and renew another 2,500.

This program is a key element of the Government’s $42 billion Nation Building and Jobs Plan to support up to 90,000 Australian jobs over the next two years.