Budget extends First Home Owners Grant Boost
Tuesday, 12 May 2009
The First Home Owners Boost has been extended for an additional six months, in budget measures announced tonight by the Treasurer.
The temporary scheme increasing the First Home Owners Grant was introduced last October to stimulate demand in the sagging housing sector, and was due to end on 30th June 2009. In response to the ongoing economic uncertainty and the success of the initiative, the Government will now extend the scheme for first home buyers until 31st December 2009.
The First Home Owners Boost will continue to provide first home buyers with $7000 for established homes and $14,000 for new homes for those entering contracts by 30th September 2009. When combined with the existing $7000 grant from the First Home Owners Scheme, first home owners will receive $14,000 for established homes and $21,000 for new homes.
The First Home Owners Boost will then halve to $3500 for established homes and $7000 for new homes, ceasing after 31st December 2009. So between 1st October 2009 and 31st December 2009, the First Home Owners Boost will provide $10,500 for established homes and $14,000 for new homes when combined with grants from the First Home Owners Scheme.
The extension is designed to continue stimulating housing activity and construction, and to help first home buyers to enter the housing market. The first-home owner's boost has already helped 59,000 Australians buy their first home. The extension will cost the Government $539 million over three years.
After 31st December 2009 when the First Home Owners Boost ceases, the $7000 First Home Owners Scheme grant will continue.
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