It has seen 171,347 Australians enter the housing market since its introduction in October 2008, Ms Plibersek said. (The Epoch Times)
The states and territories are set to introduce price caps on the grant as of December 31 after the federal government granted the move as a way of winding back its housing stimulus measures.
So far, NSW, Queensland, Victoria, Western Australia and the Northern Territory are planning to introduce the caps, Housing Minister Tanya Plibersek said on Saturday.
In NSW, WA and the NT, only homes under $750,000 will receive the $7,000 grant, while the cap is set at $1 million in Queensland and $600,000 for Victoria.
It was part of an overall phasing down of stimulus measures, Ms Plibersek said.
On October 1, additional housing grants—the first home owners boost—was reduced from $14,000 to $10,500 for existing homes and from $21,000 to $14,000 for new homes.
The boost will also be cut on December 31, reverting to the $7,000 FHOG.
It has seen 171,347 Australians enter the housing market since its introduction in October 2008, Ms Plibersek said.
"We've seen the housing industry and the housing market holding up under what would have been very difficult circumstances if we hadn't introduced measures like the first home owners boost," she told reporters in Sydney.
She warned those trying to enter the housing market to plan ahead, given the expectation that interest rates are on the up.
"We've said all along, particularly to first home buyers that it's very important to have a little bit of fat in the family budget," she said.
"The governor of the Reserve Bank has been very clear that interest rates could not stay at these emergency low levels.
"I believe that first home buyers have been taking that into account."
