First home buyers scheme not working

A senate committee has found that the first home buyers grant "benefited existing home owners rather than those seeking to enter the market". The committee decided that the grant of $7,000 to first home buyers was working against its' aim of making new homes more affordable and has not encouraged the construction of enough new homes to keep pace with population growth. Under a suggested overhaul of the system buyers of new homes would get more and buyers of existing homes will get less. Economic forecasters are predicting strong house price growth over the next three years

Source: The Age