Western Australia's Commissioner of State Revenue has today issued a warning to first homebuyers who are looking to take advantage of the increased grants unveiled by the federal government this week.
The warning comes as first homebuyers contemplate replacing an existing contract to buy or build a home with a new one dated on or after October 14 to access the federal government's First Home Owner 'Boost' scheme.
This week, Prime Minister Kevin Rudd that payment under the scheme will be doubled from $7,000 to $14,000 and first home buyers who buy newly-constructed home will receive an extra $14,000 taking their total grant to $21,000.
"We have been advised that a number of persons who already have contracts in place may be seeking to cancel them and replace them with a contract dated on or after 14 October," Commissioner Bill Sullivan said.
"People need to understand that it is intended that the legislation supporting the scheme will not allow the higher assistance level to be provided where a contract entered into on or after 14 October 2008 has replaced an earlier contract made prior to Tuesday's announcement.
"Grant applications that are cancelled, or where the contract date has been changed, will also be carefully scruitinised to ensure that the reason behind the cancellation or change is not driven by an attempt to access the increased assistance.
Mr Sullivan advised that measures have already been put in place to identify the existence of replacement contracts and applicants for the grant should be aware that they would be required to sign a declaration that no previous contract had been executed.
"Severe penalties exist for any person who provides false or misleading information as part of their application, including prosecution through the courts", Mr Sullivan said.
