Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Hansard source

The Treasurer has provided the following answer to the honourable senator's question:

The First Home Owners Scheme was brought in on 1 July 2000 to assist First Home Buyers in purchasing their first home.

In 2004 the Productivity Commission report on “First Home Ownership” noted that “the FHOS has been at most a minor contributor to the recent surge in prices” since the grant was introduced. The report also notes that “Over the long term, as supply has time to respond to demand pressures, the grant is likely to have even less impact on house prices.”

Given the marginal impact on house prices as noted by the Productivity Commission, the First Home Owners Boost provides a welcome funding boost for those entering the first home market.

COAG has implemented a Housing Supply and Affordability Reform (HSAR) Agenda looking into a range of issues impacting on the supply and affordability of housing, including the First Home Owners Scheme. It is expected that the findings of this examination will form part of the HSAR Working Party's report to the Council of Australian Governments in late 2011.