State cracks down on baby homebuyer rort

23/6/04
The State Government has moved to close loopholes in the $7,000 first home owner grant scheme allowing children as young as one year old to receive the grant.
Introducing legislation into State Parliament today, Treasurer Eric Ripper said 39 people under the age of 18 had received the grant, defeating the intention of the scheme.
He said the legislation would prohibit people under the age of 18 from receiving the grant and require a minimum six-month residency in the property to prevent people using the grant to buy rental properties.
Mr Ripper said the scheme was introduced to give genuine first homebuyers a foothold in the property market. It was governed by an agreement between the States and the Commonwealth that did not contain any age limits.
"While more than 64,000 Western Australians have applied for the grant and have done the right thing, a small proportion have sought to exploit loopholes," he said.
"To date, 54 people have been successfully prosecuted because they were ineligible for the grant. In all cases the applicant was found to have previously owned residential property.
"The tighter rules - which take effect on July 1 - will make it even harder for those who want to rort the system, such as those who use minors to apply for grants."
Mr Ripper said the new eligibility rules would also apply to the State Government's stamp duty cuts starting next month.
The Treasurer said the State Government also wanted to prevent millionaires applying for the first home owner grant, but the Federal Government had refused to allow a means test.
Around 28 people in Western Australia had used the grant to buy homes worth more than $1million.
Minister's office: - 9222 8788