The Government announced it will extend the First Home Owner’s Boost (FHOB) for an extra six months. However, in order to phase out the measure, the FHOB 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.
Proposed changes will not become law until the Budget has been passed by the House of Representatives and the Senate, and signed by the Executive Council.
Article by Christie Lewis
Christie is Practice Manager at Alan Lewis Accountants . Besides accounting, her passion is for all things small business (and blogging, of course). You can contact Christie directly at christie@lewistaxation.com.au.
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