New Home scheme grants going to foreign investors: John Robertson

Thousands of taxpayers dollars going to foreign investors through home scheme grants which should be meant for first home buyers in NSW

“The O’Farrell Liberal Government is paying $5000 to overseas property investors to buy homes and land in Australia ”“ that’s money taken straight out of the pockets of young first home buyers,” Opposition Leader John Robertson complained today on February 4, 2014 about NSW Government’s signature policies to cut financial assistance that was previously available to all first home buyers under Labor ”“ instead restricting it to first-time purchasers of new homes.

He said, “The Government is offering a $5000 grant for foreign investors and people who may already own multiple properties to purchase new homes worth up to $650,000.”

The latest statistics from the Office of State Revenue show that:

16,474 New Home Scheme grants of $5,000 were paid last year to foreign investors, property investors and existing home owners buying a new home or block of land; and
By comparison, only 9,563 First Home Buyer grants were paid to first home buyers purchasing a new home or block of land last year. Similar programs exist across the other states.

In response Mike Baird, NSW Treasurer, says, “The availability of a new home incentive to foreign purchasers is nothing new. NSW Labor’s equivalent of the New Home Grant, the Home Builder Bonus, introduced in 2010, was similarly available to foreign purchasers.”

“The First Home Owner Grant is available only to Australian residents. Also contrary to those reports, the First Home Owner Grant is worth $15,000, not $5000. Total support for first home buyers is up to about $35,000.

Mr Baird says, “We are conscious of the pressure on first home buyers that foreign investors could be applying, and accordingly we are constantly looking at all options to ensure that our first home buyers are given every support to own their own home.”

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