QLD restricts FHB grant

With the federal government’s first home owners’ boost now officially over, the Queensland government has announced further restrictions to the traditional first home owners’ grant.

From 1 January 2010, people spending more than $1 million on their first home will no longer be eligible for the $7,000 State Government grant.

Treasurer Andrew Fraser told the ABC that that cap would be further reduced to $750,000 by mid-year.

"Frankly they have more than enough capacity to be able to purchase their own home on their own terms," he said.

"We abolished mortgage duty - we've abolished stamp duty for first home buyers up to $500,000 - we've increased exemption for people buying a block of land to build their own home - and today we're introducing a new cap for the first home owners grant to ensure that the grant money goes to those who are most deserving."