The state Labor Party is calling on the government to increase the cap for the first home owners grant to $1 million for homes north of Shark Bay.
Shadow Minister for Housing Mark McGowan made the call as Parliament starts debate on a recent government announcement to cap the grant at $750,000.
Mr McGowan said Labor had accepted that a $750,000 cap on new homes was reasonable in the southern regions of the state, however its was "too low" for first homes owners living in WA's north.
"Labor will argue the cap above the 26th parallel should be $1 million," Mr McGowan said.
"Housing in towns like Karratha, Port Hedland and Broome is very expensive and Labor believes first home buyers in those communities - indeed, any community above the 26th parallel - should be able to access the grant even though the purchase price may be above $750,000.
"Why should people in the north of the State be disadvantaged compared to people in the metropolitan area?"
