First home owners grant cheats caught in audit

ALMOST 150 Queenslanders have been caught cheating on the First Home Owner Grant.

Most failed to meet the 12-month Australian residency requirements to get the grant. Others already owned a home while at least one was found to be living overseas and renting the property bought with the grant.

The crackdown recovered more than $1 million in grants and fines.

Treasurer Andrew Fraser announced last month that there were positive signs for the economy, with record numbers of first- home buyers in the market. July was the busiest with a 92 per cent increase in applications on the same month last year.

But Mr Fraser said yesterday some had tried to rort the system.

Breaches were uncovered by Treasury's Office of State Revenue during its annual investigations program, which specifically targeted the federal scheme.

In his May Budget, Federal Treasurer Wayne Swan extended the grant – to $21,000 for new homes and $14,000 for existing homes – until September 30.

"This grant is paid to assist first-home buyers and has helped boost our housing industry during the global recession, so it disappointing to find that some people have tried to obtain the grant when they were not entitled to it," Mr Fraser said.

"About 35,000 applications for the First Home Owner Grant were received by the Office of State Revenue last financial year.

"Most of these grant applications – about 34,500 – were paid without any problems, allowing young people, couples and families to enter the housing market. However, the Government's investigations found that 144 applicants were not eligible to receive the grant."

Mr Fraser said that in 104 cases, Treasury found that the grant applicants did not meet the residency requirements to get the First Home Owner Grant.

"To qualify for the grant, applicants – who must be Australian residents – have to move into their home within 12 months of buying it and then live there for at least six months.

"In one case, Treasury's investigators found that the applicant was living overseas and renting the property to a tenant. This applicant had to pay a penalty of $7000 as well as repaying the grant they received."

Mr Fraser said Treasury was unaware of any offenders being forced to lose or sell their home as a result of being caught.

The scheme will be halved from October 1 through to December 31 with Canberra yet to decide if the stimulus package will be continued into next year.

source: www.news.com.au