Earlier this month, the Productivity Commission (PC) released a report calling for an end to first home buyer (FHB) subsidies, which it claims “works against improving affordability”:
The $16 billion governments spend each year on direct housing assistance could achieve more if it was better targeted to people in greatest need. The nearly $3 billion given to first home buyers works against improving affordability. This money would be better spent preventing homelessness.
Facing an election next month, the Victorian Andrews Government has announced that it will “super-size the popular Victorian Homebuyer Fund – committing $1.1 billion to triple the size of available support”:
