Northern Territory Second Reading Speeches

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FIRST HOME OWNER GRANT AMENDMENT BILL 2009

Ms LAWRIE (Treasurer): Madam Speaker, I move that the First Home Owner Grant Amendment Bill 2009 be now read a second time.

As honourable members would be aware under the
First Home Owner Grant Act first homeowners who satisfy a number of criteria are entitled to the payment of a grant of $7000 from the Territory. The grant is intended to encourage and assist home ownership of first homebuyers. On 14 October 2008, the Prime Minister announced a fiscal stimulus package in response to the global financial crisis. Part of that package is a temporary extension to the First Home Owner’s Grant Scheme called the First Home Owners Boost. This boost scheme is aimed at providing a short term stimulus to the housing industry. The bill provides legislation to facilitate the boost scheme, which the Territory has agreed to administer on behalf of the Commonwealth. The boost increases the existing Territory grant from $7000 to $14 000 for the purchase of existing homes, and to $21 000 for the building or purchase of a new home. It applies to contracts entered into or, in the case of an owner builder, where the construction starts between 14 October 2008 and 30 June 2009.

All of the normal eligibility criteria of the Territories grant also apply and, as a general rule, construction of the home must be completed within 18 months. The bill provides for a retrospective commencement date 14 October 2009 to coincide with the Prime Minister’s announcement. As such, all payments of the additional grant made under the current administrative arrangements will be taken to have been paid under the amendments provided by this bill.


Finally, this bill includes the ability to amend the amount of the grant and the date on which the grant ends by regulations under the act. This has been inserted to facilitate any extension or variation to the scheme that might be required by the Commonwealth. This measure has provided a timely boost to new homebuyers and the construction industry.


The Henderson government also announced Bill Start, its own financial stimulus package that compliments the boost scheme and fills in the gaps in the Commonwealth package by providing a $14 000 incentive to other homebuyers and investors to buy or build new homes. This will provide further support for the local construction industry and will increase the stock of house in the Territory, which should assist renters and homebuyers alike.


The existing first homebuyer stamp duty concession of up to $15 515 or principal base of residence rebate of $2500 will continue to be available for Territory homebuyers in addition to the first homeowner grant or Build Start grant. This will allow total assistance to eligible first homeowners of up to $36 515 and assistance of up to $16 500 for other homebuyers buying or building a new home.


Madam Speaker, I commend the bill to honourable members and I table the explanatory statement to accompany the bill.


Debate adjourned.


 


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