WA’s first home buyers grant will be cut back to $10,000 after the State Government announced it would end a $5000 boost at the end of next month.
The move, which is expected to save the State Government $20 million, will come into effect on July 1.
In December, the grant was increased by $5000 up from $10,000 and took effect on January 1, 2017.
It was supposed to remain in place for 12 months.
My Wyatt said the previous government’s decision to boost the grant to $15,000 was just an “election cash splash”.
“The boost is not an effective mechanism for stimulating additional construction of homes and given the disastrous state of the finances which we have inherited, we need 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.”
“I’m glad the government has recognised that they’ve had a negative impact on that particular industry, but also recognise that the construction industry is a big employer in Western Australia,” he said.
“We’ll support that (first homebuyers) announcement and don’t have any intention of removing that in the event that we win government in March.”
Earlier this month, the Real Estate Institute of WA said first homebuyers were the most active in the Perth market.
“First homebuyers remain active and continue to take advantage of improved affordability and choice in the market to secure a property that meets their needs,” REIWA president Hayden Groves said.
Tags: Better Brokers Better Solutions, Better Choice Mortgage Services, Brokers, Finance Broker, home buyers grant, home buyers grant cut back, home buyers grant reduced, home buyers grant reduction, housing finance, Mortgage and Finance News, Perth Finance Broker