Media Release by The Hon Tanya Pibersek MP

Nearly 100,000 Australians Take Up First Home Owners Boost

The Rudd Government’s Nation Building Economic Stimulus Plan is continuing to support housing sector jobs with more than 97,000 Australians taking up the First Home Owners Boost by the end of May.

New figures show that May saw the highest take-up so far of the First Home Owners Boost – 19,607.

The First Home Owners Boost, combined with lower interest rates, has brought close to 100,000 first home buyers into the market. Activity in the housing sector means more local jobs for builders and tradies right across the country.

ABS Housing Finance for April showed the number of loans for owner occupiers increased for the seventh consecutive month. First home buyers made up 28.0 per cent of all new loans for owner occupation – the highest level since the ABS began collecting this data in 1991.

Analysis of recent ABS data on employment trends shows that employment in construction increased by 10,000 in seasonally adjusted terms in the three months to May 2009.

The Rudd Government announced a six-month extension to the First Home Owner’s Boost (FHOB) in the May Budget. The Boost will be reduced by half for the last three months of the extension period.

Extending the First Home Owners Boost will support more local jobs and help more Australians realise their dream of home ownership. It makes sense to phase out measures such as the First Home Owners Boost to allow the market to re-adjust gradually as the grants reduce.

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 Government’s plan for the housing sector reaches beyond support for first homebuyers. We have also committed $6.4 billion to build 20,000 new social housing dwellings 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 through right through 2009 and 2010 with the maximum impact timed to come as the impact of the First Home Owners Boost is starting to wind down.

 Date NSW Vic Qld WA SA Tas ACT NT Total
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
Feb-09 3,966 2,755 2,887 1,405 972 373 177 129 12,664
Mar-09 6,084 3,564 3,881 1,686 1,187 448 278 137 17,265
Apr-09 6,697 4,128 3,881 2,083 1,192 362 262 131 18,736
May-09 6,969 4,639 3,599 2,257 1,295 436 275 137 19,607
Total 34,154 20,963 20,680 10,231 7,025 2,381 1,518 809 97,761