24/03/01
The State Revenue Department is prosecuting a significant number of people who have deliberately applied for the $7,000 First Home Owner Grant while knowing they are ineligible.
Minister Assisting the Treasurer Nick Griffiths said two cases had already gone to court and approximately 40 more cases were pending.
"While the majority of applicants are applying for the grant honestly, some people believe it is acceptable to try to rort the system," the Minister said.
"The taxpayers of Western Australia should expect that only those who are eligible under the legislation should benefit from the scheme."
Mr Griffiths said it was likely that more people who were not eligible for the grant would try to apply as a result of the Commonwealth temporarily increasing the level of assistance to first home buyers to $14,000.
"These people need to be aware that they will be caught," he said.
"The State Revenue Department, which administers the First Home Owner Grant scheme on behalf of the Commonwealth, carefully screens the eligibility of every applicant and transaction.
"The Commissioner of State Revenue has indicated that he will prosecute each and every case where he considers an applicant has deliberately misled the department to obtain the grant."
Mr Griffiths said that, depending on the seriousness of the offence, a maximum penalty of up to $20,000 could be imposed by the courts.
In the unlikely event that the $7,000 had been paid, the grant would have to be returned and an additional administrative penalty of up to a further $7,000 could also be imposed.
In the first of these prosecutions in the Perth Court of Petty Sessions this week, two separate defendants were fined $1,500 and $1,000 respectively and had costs awarded against them.
"This is a clear message to those who think they can rip off their fellow taxpayers," Mr Griffiths said.
"While honest people have nothing to worry about, those seeking to rort the system will feel the full weight of the law.
"I would advise anyone who was not sure about their eligibility for the grant to contact participating financial institutions, call the First Home Owner Grant inquiry line on 1300 363 211, or visit the State Revenue Department website at http://www.srd.wa.gov.au before lodging an application."
Media contact: Mike Groves 9321 1444
