This Research Note examines the impact of the GST and the First Home Owners' Scheme on the housing industry by analysing trends in new dwelling approvals, housing finance commitments for dwellings and actual work done in the building industry in the 12 months to June 2001. The Note also examines the eligibility criteria for the grant provided under the First Home Owners' Scheme, the level of usage of the grant by new home buyers in individual states and territories, the cost to taxpayers of the grant and its influence on levels of building activity.