First homeowner grant tied up in red tape

Homebuyers trying to take advantage of the new $14,000 First Home Owners' Grant are being forced to wait for the money because of bureacratic delays in processing apllications.

The delay stems from the Federal Government provision of paperwork to State Governments which administer the grant.

Grant applicants have been forced to postpone the commencement of construction of the homes as a result. Since the new grant was announced more than a month ago, not one applicant in Tasmania has had a grant approved.

There is some confusion between Federal Government which is providing the grant money and the States. Victorian Treasurer John Brumby however has given Federal Treasurer Peter Costello until today to advise him of the scheme's administration. Mr Costello maintains the States have had all the information they need since March 23.