All Topics / Help Needed! / FHOG and upcoming Fed Budget

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  • Profile photo of cadancadan
    Join Date: 2006
    Post Count: 25

    Hi all, my first post.

    There has been speculation on the upcoming Fed Budget on 9 May that the government may increase the FHOG (see article below). Any thoughts on this, especially considering I will be bidding on a property on 6 May. (wouldn’t want to miss out on thousands of dollars for signing a few days early).
    Any luck the Vic government may also throw in a few goodies for first home buyers in their budget?
    view please?

    Call to lift home grant to $15,000
    Author: Michelle Grattan
    Date: February 7, 2006
    Publication:  Sydney Morning Herald (subscribe)
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    The Government should more than double the first home owners’ grant because soaring prices have put buying a house beyond the reach of many, the chairman of the Coalition’s backbench treasury committee, Steven Ciobo, says.
    He said the grant should go from $7000 to $15,000, with eligibility tightened.
    “Australian real estate is among among the most expensive in the world,” he said at the weekend. “Five Australian cities feature in the world’s 11 most expensive places to buy when median household income is assessed against median house prices.
    “Those on lower incomes are struggling to save a deposit for a home. Nearly 9 per cent of Australians spend one-third of their pay on rent and simply don’t have the capacity to put additional money aside.”

    A $15,000 grant would be affordable for the Government and at this time the measure would not stimulate the property market unduly, Mr Ciobo said.
    He urged a means test and a cap on the scheme, which at present has neither. The grant should start phasing out when household income was more than $100,000, with no assistance available when income reached $125,000. The value of the grant should be capped at the cost of the average home in Sydney — the most expensive market in the country. On top of the $15,000, first home owners should be entitled to a “significant reduction” in stamp duty imposed by state Labor governments on property transfers.
    Meanwhile, Family First senator Steve Fielding has called on the Prime Minister to increase the tax-free threshold according to the number of children people have.
    He said the “family budget” in May should also give petrol tax relief.
    Family First wants the Government to increase the tax-free threshold from $6000 to $8000 this year, rising to $13,000 in the future.

    Profile photo of learnsharelearnshare
    Join Date: 2003
    Post Count: 105

    It would be good for the first home buyers, if the increased grant really eventuated. And hopefully this would not drive the market price up immediately.


    Profile photo of brahmsbrahms
    Join Date: 2004
    Post Count: 485

    “……the chairman of the Coalition’s backbench treasury committee, Steven Ciobo, says.
    He said the grant should go from $7000 to $15,000….”

    hehe, the chairman of the Coalition’s backbench treasury commitee…omg, who?

    slow news day?


    Purveyor of Fine Finances
    aka Mortgage Broker Brisbane

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