TASMANIAN Premier Lara Giddings last week announced that the First Home Builder Boost will be doubled to $30,000 to stimulate activity and job creation in the building industry, following an earlier increase in the grant last year.
The grant for first home owners who choose to buy or build a new home will now be increased from $15,000 to $30,000, effective immediately. Ms Giddings said the take-up of the grant, which was increased from $7,000 last year, had been slower than expected.
"It was always expected that applications would accelerate over time, but we recognise the need to create jobs right now. Builders have told us that there has been a lot of interest from people wanting to build their first home, but they needed more time to accumulate a deposit," Ms Giddings said.
"That is why we have taken the decision to turbo-charge the incentive for people to build their first home, effectively paying the cost of a deposit on an average new home build," the Premier said, adding that the grant is now the most generous in the nation, particularly when taking into account Tasmania's housing affordability.
"With record low interest rates, affordable house and land packages and now a $30,000 down payment from the State Government, there has never been a better time to build a home. I would encourage anyone who has been thinking about building or even buying a new home off the plan to think seriously about taking advantage of this offer," Ms Giddings said.
"The average cost of constructing a first home in Tasmania was around $234,000 in 2012-13 and this grant will make building an even more attractive proposition."
The scheme will run until December 2014, with the cost expected to be covered within the original $24.5 million Tasmanian Jobs Package.