Issue Date:  -  Wednesday, 2 April 1997

State Government drops income test criterion for Home Buyer's Assistance scheme.

The State Government has dropped the income test criterion for the Home Buyer's Assistance scheme.

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, with the changes made retrospective to today.

"Previously all applications were income-tested and we often saw single-income applicants being favoured over couples in the process," Mr Shave said.

"Removing the income test criteria allows all Western Australians, who are residents and have not previously bought a home here or overseas, to apply.

"What we have done is removed any bias toward single-income applicants while protecting low income earners by setting maximum house prices under the scheme.

"Only people buying a first metropolitan and country home for less than $85,000 are eligible."

Mr Shave said another improvement was raising the maximum purchase-price levels for remote areas, including the North-West and Kimberley.

"Real estate in this area has risen expeditiously, especially in comparison to the Perth metropolitan area and the increases needed to be accommodated," he said.

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

Since the scheme was reactivated in October, 1994, more than 900 first home buyers have had their applications approved, sharing more than $1.5 million.

Successful applicants can receive up to $2,000 to help with their costs, depending on the level of fees incidental to the home purchase.

Mr Shave said the Real Estate and Business Agents Supervisory Board (REBA) came up with the proposal after conducting a review of the fund on how to distribute the scheme more equitably.

Money for the fund was provided from interest paid on real estate agents' trust accounts.

More information about the Home Buyer's Assistance Scheme is available by ringing 1300 30 40 54.

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