Legislation caps first home-owner grant, introduces land tax exemptions for aged care facilities

A $1 million cap will be enforced on all First Home-Owner Grant (FHOG) applicants under legislation passed today by State Parliament.

Treasurer Andrew Fraser said under the Revenue and Other Legislation Amendment Act, a $1 million cap will restrict wealthy first home buyers from accessing the grant.

“The First Home-Owner Grant is designed to assist first home buyers break into the market,” Mr Fraser said.

“Any first home buyer who can afford a $1 million purchase as their first investment in the property market doesn’t need a Government leg-up.

“The grant should and will be given to those for whom it will make a difference.

“This initiative was announced in the 2008-09 Budget, and the Government is delivering on that promise.”

The legislation comes into effect from 1 July 2009.

Mr Fraser said there were strong incentives for home-buyers with tumbling interest rates, the Federal Government’s First Home-Owner boost, and the Bligh Government’s decision to abolish stamp duty for first home-buyers under $500,000.

Another feature of the wide-ranging legislation is the introduction of land tax exemptions for aged care facilities.

“A new land tax exemption for aged care facilities will be retrospective to July 1 and will ensure lower operating costs for aged care homes.

“This exemption complements the existing land tax exemption for retirement villages, and is all about easing the burden on Queensland’s aged persons.”

Media Contact (Treasurer’s office): 3224 5982 or 3224 6361