Western Australia Premier Colin Barnett
Western Australia Treasurer Mike Nahan
Western Australia Minister for Finance and Small Business Sean L’Estrange
First Homebuyer Boost With Increased Grant
Victor P Taffa
- First home owners to receive $15,000 from January 1, 2017 to December 31, 2017
- An extra 650 first homebuyers expected to buy their first home
- About 2,000 new construction jobs for builders and other tradies
Liberal National Government today announced the First Home Owners Grant will be boosted from $10,000 to $15,000 for 12 months from January 1, 2017.
Premier Colin Barnett said the decision would help first homebuyers enter the property market, stimulate construction in Western Australia’s housing market and create about 2,000 new jobs for the many tradespeople employed in the construction of a new home.
“We are conscious about housing affordability and this boost will provide more families an opportunity to get into the housing market.” Premier Barnett said.
“We are committed to creating and supporting jobs for West Australians (WA), so this carefully targeted measure will not only provide more employment opportunities for every tradie in your neighbourhood, but we expect an extra 650 WA first homebuyers to buy or build a new home.”
Treasurer Mike Nahan said the 12-month boost to the grant, coupled with the existing generous transfer duty assistance provided to first homebuyers, was one of many measures the State Government was introducing to support the State’s economy.
“Eligible first homebuyers purchasing vacant land on which to build their home will continue to pay no duty on purchases up to $300,000, and pay a reduced amount of duty on land up to $400,000.” Dr. Nahan said.
“Those buying an established home or a newly constructed home also pay no duty for homes up to $430,000, and reduced transfer duty on homes up to $530,000.”
Finance and Small Business Minister Sean L’Estrange said the new $5,000 boost payment would apply to contracts entered into between January 1, 2017 and December 31, 2017 for the purchase or construction of a new home, as well as owner builders who laid foundations of their home between those dates.
“This is great news for small businesses in the construction industry and will create jobs for brickies, plumbers, electricians, carpenters and many other building trades.” Mr. L’Estrange said.
“Homes must be completed within certain timeframes. If you enter into a contract to build a home, construction must start within 26 weeks from you signing the building contract, and the home must be completed within 18 months after construction commences. If you are an owner builder or purchase a new home ‘off-the-plan’, including apartments, construction of your home must be completed by June 30, 2019.”
As with the existing grant, the boost payment applies to new homes up to the value of $750,000 (or up to $1 Million if the home is located north of the 26th parallel).
- The estimated cost of the additional boost payments is about $45 Million