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First home owners assistance slashed again



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mgaa LIBERAL

Wilson Tuckey MP MEMBER FOE O 'CONNOR SHADOW MINISTER FOR HOUSING AND SMALL BUSINESS

FIRST HOME OWNERS ASSISTANCE SLASHED AGATM

Assistance to first home owners under the Federal Government's First Home Owners Scheme (FHOS) has dropped a massive 17 percent in this years Budget from $176m to $146m.

According to Wilson Tuckey, Shadow Minister for Housing the Hawke/Keating Government has no interest in assisting Australians with the purchase their own homes.

This $30m drop in assistance follows on from a $46m drop last year. It clearly shows that the Government's changes to the FHOS earlier this year have effected the ability of Australians to meet affordability requirements.

Wilson Tuckey said that this was a clear admission that the First Home Owners Scheme is not working. The Government obviously does not expect any increase in demand - in fact quite the reverse!

The income limits introduced recently phase out at $34,000 for a family with two or more dependants. This does not go anywhere near the salary required to meet mortgage repayments, with 17 percent interest, on the loan required to afford a median priced Australian home.

Income limits required 'to meet this median priced home would need to be, at the very least, raised to a ceiling of $45,000 for a family of two or more dependants.

Wilson Tuckey said that the only change in the 1989/90 Budget is a requirement for a twelve month residency before any assistance under FHOS would be payable.

CANBERRA 15 August 1989 COMMONWEALTH

PARLIAMENTARY LIBRARY MIC AH

FOR ENQUIRIES PLEASE CONTACT: Wilson Tuckey MP - (062)77.4171/3 /bj or (09)325.4077 (bj (09)277.3076 [p]

Norm Haywood - (062) 77. 4171/3 (bJ or (09)325.4077 (bj (09)344.4021 (pj