FIRST HOME OWNER GRANT AMENDMENT BILL 2002 Second Reading Speech

Northern Territory Second Reading Speeches

FIRST HOME OWNER GRANT AMENDMENT BILL 2002

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

Madam Speaker, I move that the bill be now read a second time.

The First Home Owner Grant Amendment Bill serves to implement the Commonwealth government’s extension of the additional first home owner grant for new homes. As a Commonwealth government policy initiative, it is to be fully funded by the Commonwealth. However, as with the existing arrangements, the states and territories will administer the scheme.
This additional grant was to have ceased on the 31 December 2001, but has now been extended, with some modifications, to operate until 30 June 2002. The modifications are twofold. Firstly, the amount of the additional grant has been reduced from a total of $14 000 to a total of $10 000, for all eligible transactions entered into from 1 January 2002. The original grant of $7000 remains for people purchasing established homes.

Secondly, the eligibility requirements for the commencement and completion of construction of a new home have been relaxed, with effect from 9 October 2001. This means that construction is to have commenced within 26 weeks and the building contract being entered into, instead of the prior period of 16 weeks; and the contract must specify completion date within 18 months after the building work commences, instead of the prior period of 12 months. A transitional provision has been inserted to maintain the integrity of the prior commencement and completion dates.

Finally, this bill includes the ability to amend the amount of the grant and the date on which the grant extends, by the Administrator making a proclamation in the Gazette. This has been inserted to facilitate any further extension or variation to the scheme required by the Commonwealth government. I seek to table, along with this bill, the explanatory memorandum which I do have here somewhere. Madam Speaker, I commend the bill to honourable members and table the explanatory memorandum.

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