FIRST HOME OWNER GRANT AMENDMENT BILL 2001 Second Reading Speech

Northern Territory Second Reading Speeches

FIRST HOME OWNER GRANT AMENDMENT BILL 2001

(This an uncorrected proof of the daily report. It is made available under the condition that it is recognised as such.)

Mr Speaker, I move that the bill be now read a second time and seek leave to incorporate the second reading speech in Hansard.

Leave granted.

As the honourable members would be aware, under the First Home Owner Grant Act, first home owners that satisfy a number of criteria are entitled to the payment of a grant of $7000. The grant is intended to encourage and assist home ownership and offset the effect of the goods and services tax on home ownership.

On 9 March 2001, the Prime Minister announced a scheme to temporarily double the first home owner grant to $14 000 for the construction of new dwellings or the purchase of new previously unoccupied houses.

The grant will remain at $7000 for other first home owners. The increase is to apply to construction and purchase agreements entered into between 9 March 2001 and 31 December 2001. The commonwealth will fund the additional component of the grant.

Currently the additional grant is being paid by way of an administrative arrangement. However, to provide greater certainty and control over payments of the grant, the bill proposes to incorporate it into the existing First Home Owner Grant Act. As such, the following eligibility criteria for the payment of the additional grant are included in the bill.

All the existing eligibility criteria under the existing First Home Owner Grant Act are satisfied and the transaction relates to the purchase or building of a new home in the Territory The contract for the construction or purchase of the new home or substantially renovated home is made between 9 March and 31 December 2001 In the case of an owner-builder the construction of the new home is to commence between 9 March and 31 December 2001 and is to be completed before 1 May 2003.

The purchase of a new home must be a home in the Territory that has not been previously occupied or sold as a place of residence. The sale of a substantially renovated home or the replacement of demolished premises will be eligible for the additional grant subject to certain circumstances. Construction for new homes purchased ‘off-the-plan’, must be completed before 1 May 2003. In the case of the construction of a new home by a builder, the building work must start within 16 weeks after the date of the contract or such longer period the commissioner allows. The building contract is to specify that the new home is to be completed within one year of the date construction commenced. If no date is specified then the new home must be constructed within one year of the date construction commenced.

In all circumstances, the new grant is in addition to the existing $7000 first home owner grant provided by the government.

The additional grant will not be payable where a contract for the construction or purchase of a new home replaces a contract made before 9 March 2001 for a substantially similar home. The additional grant will also not be payable where the purchaser had an option to enter into a contract to build or purchase the new home prior to 9 March 2001.

The Commonwealth has established the above criteria for the purposes of the additional grant in consultation with the industry and all the states and territories. Moreover, the criteria is uniform in all states and the A.C.T. The bill provides for a retrospective commencement date of 9 March 2001 to coincide with the Prime Minister’s announcement. As such, all payments of the additional grant made under the administrative arrangements will be taken to have been paid under the amendments provided by this bill.

This measure, together with the Territory government’s Quickstart initiative, has provided a timely boost for new homebuyers and the construction industry. The existing first home buyer stamp duty concession of up to $2096 will continue to be available in addition to the first home owner grant for the construction or purchase of a new home in the Territory. This will allow total assistance to eligible first home owners of up to $16 096, or up to $21 096 where they have also qualified for the $5 000 Quickstart grant.

Mr Speaker, I commend the First Home Owner Grant Amendment Bill to the honourable members.

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