GST housing claims outdated

25/2/00
Housing Minister Kim Hames said the State Opposition was basing its allegations regarding the impact of the GST on housing on out-dated information.

"The Ministry of Housing did advise Treasury of the need for compensation in March 1999, but has since been given compensation by the Federal and State Governments,'' Dr Hames said.
"Dr Gallop has not taken into consideration that people on pensions will be compensated for the GST and those earning and paying PAYE will pay less income tax.
"In the case of Homeswest pensioner tenants, their pensions have been quarantined from rent increases.
"In the case of private tenants, they will be compensated if their rents increase because they will either have compensation or pay less income tax.
"The Ministry of Housing does not expect there to be an appreciable extra demand for public housing because of the GST,'' he said.
Dr Hames said that in addition the Government would soon be announcing the details of a $7000 grant for First Home Owners, which would help them buy their own homes.
The Government was committed to assisting as many people as possible to buy their own homes, particularly low-income earners.
Media contact: Caroline Lacy 9424 7450