Issue Date:  -  Wednesday, 16 July 1997

Income test criteria for Home Buyers' Assistance Scheme removed

The income test criteria for the Home Buyers' Assistance Scheme has been removed.

Fair Trading Minister Doug Shave announced that from July 1 all Western Australians buying their first home through a licensed real estate agent would be able to apply for assistance.

"Previously, the criteria tended to favour single income applicants over couples," Mr Shave said.

"We have now removed this bias to make the assistance more accessible to new home buyers," he said.

The assistance involves a grant for incidental expenses connected with purchasing an established or partially built home.

The maximum house price for metropolitan and country buyers to be eligible is $85,000.

Another amendment to the scheme improves availability of grants by raising the maximum purchase price levels for those buying in remote areas.

This is in response to the rapid price increases in regions such as the North-West and Kimberley, especially in comparison to Perth metropolitan prices.

The new maximum purchase prices under the Home Buyers' Assistance Scheme are $120,000 for remote areas and $140,000 for the North-West and Kimberley.

There is a 90 day retrospective provision in the amendment, which means that those who have entered into contracts to purchase homes after April 2, 1997 will be eligible to have claims assessed under the new criteria.

Since the scheme was reactivated in October 1994 more than 900 first home buyers have had their applications approved.

Successful applicants can receive up to $2,000.

The funds for the assistance scheme come from interest paid on real estate agents' trust accounts.

The other criteria concerning previous ownership, buying through a licensed agent and borrowing from an authorised financial institution still apply.

For more information and application forms, phone 1300 30 40 54.

Media contact:
Anabel Gomez
Tel: (08) 9366 0300