Mr Speaker, this Bill introduces amendments to the First Home Owner Act 2000 (FHOG Act), which will provide the necessary legislative support for the ACT Government to administer the Commonwealth's additional $7,000 grant to eligible first home purchasers of new homes.

Members will recall that the original $7,000 grant was introduced on 1 July 2000 to eligible first home purchasers to alleviate the effect of the GST.

On 9 March 2001, the Prime Minister announced the Commonwealth would fund an additional $7,000 grant for first home owners of new homes with the intention to provide a short-term stimulus to the housing industry. This means that eligible first home owners of new homes are now entitled to a maximum grant of $14,000.

Mr Speaker, subsequent to the Prime Minister's announcement, I obtained agreement from a majority of Members of this Assembly to pay the additional $7,000 grant through an administrative arrangement until appropriate legislation could be introduced.

This Bill will give legislative effect to the payments made under those administrative arrangements, allowing the full compliance and investigative powers to deal with any abuse of the system to obtain the additional $7,000 grant.

Mr Speaker, the additional $7,000 grant will only be available to those who have contracted to build or buy their first home between 9 March 2001 and 31 December 2001 and, in the case of owner builders, they must commence construction of their first home between 9 March 2001 and 31 December 2001.

Mr Speaker, all existing eligibility criteria under the current FHOG Act will also apply for the additional $7,000 grant, while the Bill also contains various other requirements that must be met by applicants concerning the commencement and completion date for construction of new homes that have been stipulated by the Commonwealth.

Mr Speaker, as is the case for the current grant, the additional $7,000 grant will also be administered by the Commissioner for ACT Revenue.

In conclusion Mr Speaker, this Bill will give support to an initiative, which will offer considerable financial assistance to genuine first home owners and will also provide a short-term stimulus to the building industry.

Mr Speaker, I commend this Bill to the Assembly.