First Home Buyers Grant Cut to $10,000
The State Government has announced the WA’s first home buyers grant (FHOG) will be cut back to $10,000, ending the $5,000 boost at the end of next month.
Treasurer Ben Wyatt said the $15,000 grant, announced by the former government late last year and intended to be in place for all of 2017, had not seen an increases in first home buyers.
The move will come in to effect on July 1, and is expected to save the State Government $20 million. It was expected to last the duration of 2017 after coming to effect on January 1st, however the outcome was not what the government had expected.
Mr Wyatt saw the government’s decision to boost the grant to $15,000 as an “election cash splash”, stating that the boost was not an effective mechanism for stimulating additional construction of homes and given the state of the finances they inherited, there was an urgency to remove any ineffective spending.
“Ceasing the boost early will allow the State Government to fund higher priority areas while ensuring Western Australian first home buyers continue to be eligible for generous Government assistance.
“This action represents another $20 million saved over the forward estimates. It’s another step towards budget repair” Mr Wyatt said.
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