$7000 first home funding grant to offset GST

6/4/00
First home buyers are set to be saved the impact of the GST under new funding legislation outlined in State Parliament today.
Minister Assisting the Treasurer Graham Kierath said first homebuyers would receive a $7000 grant under the legislation to compensate for GST in addition to existing assistance schemes.
Mr Kierath said the grant was not extended to current home owners as they would not lose out under GST when they bought a new home as they would receive a relative price rise for their existing property.
He said the legislation was expected to provide assistance totalling nearly $120 million in the first year, accumulating to $1.3 billion by the end of the decade.
"In the first year alone there is expected to be 17,000 applicants in Western Australia," Mr Kierath said.
"That is 17,000 families who will be on their way to owning their own home which is a concept the Government wholeheartedly supports."
Mr Kierath said the $7000 grant would not be means tested and there was no upper limit on the value of the property being purchased.
"This scheme is for everybody who is buying their first home, it is about treating people fairly in reducing the impact of the GST," he said.
Grants will be awarded to applicants who are Australian citizens or permanent residents, have not received a grant elsewhere in Australia and have not held any degree of ownership in residential property.
Mr Kierath said applicants would also have to occupy the home to which the grant relates as their principal place of residence within 12 months.
He said the grant would be applicable to purchase and construction contracts signed after the introduction of the GST or for homes when construction begins after the start of the 2000/2001 financial year.
"If the home is being jointly purchased, both applicants will have to satisfy the conditions, however there will only be one grant for each property purchased," he said.
Mr Kierath said to make it easier for applicants, the State Revenue Department was working with financial institutions to allow them to apply for the grant when they seek financial.

Media contact: Zac Donovan (08) 9213 6400