Tanya Plibersek (Sydney, Australian Labor Party, Minister for Housing) Share this | Hansard source

I would like to thank the member for Werriwa for his question. He is very well aware that first home buyer activity in his own electorate has been very strong since the introduction of the first home owner boost. He has told me about it. In fact, one of the Landcom developments out his way, One Minto, had to release extra land to cope with the extra demand that they have seen from first home buyers in the electorate of Werriwa.

On Tuesday the Treasurer announced the government will extend the highly successful first home owner boost as part of our commitment to building the nation for recovery. The first home owner boost was introduced as a temporary stimulus measure to support housing construction and also to help young Australians into homes of their own. It has been very successful in supporting jobs. In fact, it has been one of the very important measures in both the stimulus packages and in the budget that will help support 210,000 fewer Australians ending up on the unemployment queues.

To the end of March this year, 59,000 Australians have claimed the boost and, of course, many more have bought homes. Many more have signed contracts to build homes and will claim the boost once their homes are complete. There were 17,700 new loans written to first home buyers in March, compared with 8,800 in August 2008, so we see almost a doubling in the number of loans written to first home buyers. Loans for construction rose by almost 14 per cent in March, compared with in the previous month. That means that, in seasonally adjusted terms, housing loans have risen for six consecutive months, following eight months of decline prior to the introduction of the first home owner boost. The proportion of first home buyers is at record levels: over 27 per cent of new loans written are going to first home buyers. Building approvals have risen for the previous three months, after a major decline last year.

In order to ensure the responsible phasing-out of the first home owner boost, it will be continued at existing levels for three months and then stepped down. So, until 30 September, first home buyers will be eligible for $21,000 from the federal government for newly built homes and $14,000 for existing homes. Between 1 October and the end of the year, 31 December, first home buyers will be eligible for $14,000 on newly constructed homes and $10,500 on existing homes.

The reaction from people in the housing construction area and related fields has been, predictably, enormously positive. They know how important this measure is to support jobs in their industries. David Airey, the new President of the Real Estate Institute of Australia, says that this measure will have:

… tremendous flow-on effects … to those in the business of servicing the property industry, such as solicitors, conveyancers, financiers, valuers, removalists, furniture suppliers and a range of tradespeople.

Ron Silberberg of the Housing Industry Association says that this measure:

… means thousands of jobs will be secure and frenetic buying will be avoided. The proposal provides a transition to the cutting in of the investment in housing under the Nation Building Plan.

Caryn Kakas, the Executive Director of the Residential Development Council, says:

The timing for the boost to wrap up dovetails well into the ramp up of Government spending on the public housing front which will guarantee that jobs across the construction sector are secure.

And Wilhelm Harnisch from Master Builders Australia says:

… these measures will be effective in lifting activity in the building and construction industry at a time when the global financial crisis is having its worst impacts …

The first home owner boost is supporting the jobs of today and helping thousands of Australians into homes of their own—homes that will give them lifelong financial, social and emotional benefits. The Australian government is supporting the jobs of today by helping Australians into homes of their own.

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