Price cap to be introduced for First Home Owners Grant

The Rudd Government is announcing today that after December 31, the Commonwealth will allow States and Territories to set a price-cap for recipients of the First Home Owners Grant.

Stamp duty concessions for first home buyers are already capped by many states and territories according to the property value.

States and Territories which have so far indicated they will introduce a price-cap on the First Home Owners Grant are: NSW, Victoria, Queensland, WA and NT.

New figures out today show the Nation Building Economic Stimulus Plan continues to support housing sector jobs and first home buyers, with more than 171,000 Australians using the First Home Owners Boost to the end of September.

Today’s figures provide the full picture of the First Home Owners Boost before it began to phase down at the beginning of October.

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 31 December, 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 By design, stimulus will be gradually withdrawn as the economy recovers.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.

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 Rudd Government is pleased with the success of the First Home Owners Boost, with 171,347 first home buyers entering the market since October 14, 2008.

The First Home Owners Boost, combined with lower interest rates, has helped 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.