- Legislation to establish Keystart as a Government Trading Enterprise (GTE) introduced into Parliament
- The legislation will result in Keystart operating through the same structure and governance as other Government Trading Enterprises
- The change will support more Western Australians to achieve home ownership
Legislation has been introduced to the Western Australian Parliament to make Government-owned home lender Keystart a statutory corporation, to support more Western Australians to achieve home ownership.
As part of the Cook Government's ongoing reforms to increase housing supply and affordability across the State, the change will provide Keystart with flexible functions and powers to offer financial assistance for housing as market conditions change.
As well as allowing new products for retail customers to be developed, the new structure will enable Keystart to provide financial assistance to support new housing developments.
Keystart currently operates through a trust and group of companies and does not have its own enabling legislation. The new legislation will apply the Government Trading Enterprises Act 2023, so Keystart will operate under the same State legislative governance as other Government Trading Enterprises.
It also provides for clear Ministerial oversight to ensure Keystart's business processes and decisions contribute to the achievement of whole-of-Government outcomes.
All of Keystart's existing loans will be transferred to the new Keystart GTE. There will be no changes or impact to existing customers and Keystart's existing products, including its low deposit home loan, will continue to be offered by the new Keystart GTE.
As stated by Treasurer Rita Saffioti:
"The establishment of Keystart as a GTE under the new Act standardises its governance arrangements and further enhances Keystart's role in the State Government's efforts to boost housing supply and get more Western Australians into their own home.
"The new Act will expand Keystart's functions to not only support individuals with products such as low deposit and shared equity home loans, but also enables it to provide financial support to new housing developments."
As stated by Housing Minister John Carey:
"Since Keystart was established under the WA Labor Government in 1989, Keystart has assisted more than 122,000 Western Australians achieve their homeownership goals.
"This legalisation follows our major changes to Keystart's property price and income limits, to enable more Western Australians to own their own homes.
"We're doing everything we can to bolster the long-term supply of housing throughout Western Australia, including through our record $3.2 billion in housing and homelessness measures, nation-leading planning reforms, 100 per cent stamp duty concessions, our $80 million Infrastructure Development Fund, and through a range of changes to Keystart loans."
