south australia knifes first home owner grant

http://www.adelaidenow.com.au/sa-state-budget-2011-first-home-owner-boost-to-be-phased-out/story-e6frea6u-1226072473058

GRANTS to stimulate the construction sector for new homes will be cut from next year.

The Government hopes the measuere will bring forward stimulus to the lagging housing sector.

The State Government First Home Bonus Grant, which is currently $8000 for first-home buyers, will be gradually phased out, to be abolished in 2013 to save the Government $3.8 million next year and $9.5 million in 2014 - 2015.

From July 1 next year, the grant will be cut to $4000.

Treasurer Jack Snelling said that the bonus in the long run had the effect of raising prices for those building entry-level homes.

The $7000 First Home Owners Grant would remain in place.

Mr Snelling said he was confident that the boost would not have a negative impact on the housing sector.

"I am confident that by then (2013) we will be seeing a fair bit of recovery in the property market."

"I think that by doing it this way we might bring a bit of activity forward," he said.

Mr Snelling said he would be directing the saved funds to areas of "crucial need", such as disability services.

"That money I would prefer to be spending in areas of most need (and) I don't think the first home Owners bonus does much for housing affordability."