Tonight the Rudd Government announces it will extend the highly successful First Home Owner’s Boost (FHOB) for an extra six months to support more Australian jobs and help more Australians realise the dream of home ownership.
The announcement follows enormous public support for the First Home Owner’s Boost, which to the end of March 2009 has helped 59,000 first home buyers into their first home.
The measure is part of the Rudd Government’s response to the global recession and is a vital part of our efforts to stimulate economic activity, cushion the Australian economy from the worst impacts of the international downturn and support and Australian jobs.
Extending the FHOB will mean more opportunities for Australians to enter the housing market for the first time, and will support many thousands of jobs in the vital housing sector along with the companies in the housing supply chain.
The extension of the FHOB will mean more jobs for plumbers, electricians, builders and other trades people all over the country as we battle the global recession.
In order to ensure a responsible phasing out of this highly successful measure, the First Home Owner’s Boost will be reduced by half for the last three months of the extension period.
For eligible first home buyers entering into contracts between 1 July 2009 and 30 September 2009 (inclusive) the FHOB will continue to provide $7,000 for the purchase of established homes and $14,000 for the purchase of new homes.
This means that including the $7,000 First Home Owner’s Grant, until 30 September, purchasers of new homes will continue to be eligible for $21,000 of assistance, and purchasers of existing homes will continue to be eligible for $14,000 of assistance.
Between 1 October 2009 and 31 December 2009 the FHOB grants will be $3,500 for the purchase of established homes and $7,000 for the purchase of new homes.
This means that including the $7,000 First Home Owner’s Grant, from 1 October until 31 December, purchasers of new homes will be eligible for $14,000 of assistance, and purchasers of existing homes will be eligible for $10,500 of assistance.
The FHOB grants are in addition to the existing $7,000 grant under the First Home Owners Scheme.