NO.024

No Excuse For States To Delay $14 000 Home Grant

Some States are delaying delivery of the new $14 000 first home owners grant.

There is no excuse for this delay.

It is time the States started delivering the grant, and homebuyers should insist

on payment. Attempts by some States (in particular, Victoria) to blame the

Commonwealth for their administrative delays are feeble excuses.

All States and Territories have known since 9 March that the Commonwealth would

fund the increased grant in full. This was made clear in a letter of that date

from the Prime Minister to all Premiers and Chief Ministers, which stated

“The temporary increase in the grant will be funded in full by the Commonwealth

and I would ask that you facilitate a speedy implementation of this initiative.”

Commonwealth and State officials then met to settle the administrative and

eligibility issues. The details were made public in my press release dated

23 March. Contact numbers for State Revenue Offices were also given in that

release.

I reiterated the Commonwealth’s commitment to fund the increased grant and

the terms of the scheme on 30 March at the Ministerial Council meeting attended

by all State and Territory Treasurers.

The Commonwealth will tomorrow advance to the States and Territories $60 million

for the cost of the $14,000 first home owners grant.

I also repeat the Governments call for major banks and lending institutions

to take the additional support associated with the higher grant into consideration

when assessing the borrowing applications from prospective buyers.

CANBERRA

11April 2001

Contact: David Alexander

0418 210 601