WA cuts first home owner boost

Western Australia's new Labor government has cut the $5000 boost payment to first home buyers in a bid to save $20 million. 

State treasurer and finance Minister Ben Wyatt said on Wednesday the government would end the boost payment on 30 June, six months ahead of the December deadline set by the previous Coalition government.

It was introduced as an extra payment last December.

In December, the grant was increased by $5000 up from $10,000 and took effect from January 1,2017.

It was to remain in place for 12 months.

My Wyatt said the previous government’s pre-election decision to boost the grant to $15,000 was just an “election cash splash”.

First-home buyers buying a new home worth up to $750,000 after 30 June will still be eligible for the first-home owner grant of $10,000. 

"The boost is not an effective mechanism for stimulating additional construction of homes and given the disastrous state of the finances which we have inherited, we need to remove any ineffective spending," Mr Wyatt said.