Several federal MP's from both Labor and Liberal are calling for an increase in the first home owner's grant. It is already widely regarded as a bad idea that inevitably backfired. It caused and increase in house prices and inflation. The Australian had a good cartoon about the mentality behind these handouts:

http://network.news.com.au/image/0,10114,5523331,00.jpg

http://www.abc.net.au/news/newsitems/200706/s1949834.htm

Double first home owners grant, says backbencher

A federal Liberal MP says the Government should double the first home owners grant, despite another backbencher maintaining the Commonwealth can do little to ease the housing affordability crisis.

Queensland Liberal Steve Ciobo says the grant should be increased to $14,000 and tied to state governments agreeing to cut stamp duty.

Labor treasury spokesman Wayne Swan has supported Mr Ciobo's idea.

Who nominated Wayne Swan as Treasurer of the opposition?

This has also happened in Private Health Insurance, private schools and now childcare.  All the childcare centres have welcomed the immediate government contribution saying that now their clients can afford the new rate increase of 10%.  

We are just going around in circles.  Meanwhile the cost of maintaining our living standards is becoming too expensive for the average person and is just creating more debt for our kids to pay off later.

This is definitely not as bad as the Liberal policy of more handouts, but is it a good idea?

http://www.smh.com.au/news/National/ALP-to-flag-scheme-for-firsthome-buyers/2007/07/02/1183228992689.html

Labor is considering introducing a superannuation-style scheme to help first-home buyers, Opposition Leader Kevin Rudd says.

The plan, which Mr Rudd will unveil on Monday, would allow young people and families to divert some of their pre-tax earnings into special accounts to save for a deposit for their first home.

It would be similar to top-up superannuation schemes, according to newspaper reports.

Labor is considering the plan to allow new home deposit savings vehicles, which would have higher potential returns than ordinary deposit accounts and a lower rate of tax on contributions to the fund.

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Labor may cut red tape for home owners

http://www.smh.com.au/news/National/Labor-may-cut-red-tape-for-home-owners/2007/07/10/1183833482414.html

The development application process for home builders and renovators would be able to be tracked online under a federal Labor proposal.

Opposition Leader Kevin Rudd said delays in the application process are adding up to 15 per cent to the cost of a house.

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Doubling grant will 'raise house prices'

http://www.smh.com.au/news/breaking-news/doubling-grant-will-raise-house-prices/2007/08/04/1185648204310.html

Doubling the federal government's first home buyers grant will increase house prices unless the state governments release more land for housing, Finance Minister Nick Minchin says.

The Real Estate Institute of Australia wants the grant to be doubled to $14,000 to give first home buyers a better chance of entering the market.

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First home owners grant to stay: Rudd

http://news.smh.com.au/first-home-owners-grant-to-stay-rudd/20080229-1vr3.html

The federal government will retain the $7,000 first home owners grant and will not be replaced by its savings account scheme for new home buyers, Prime Minister Kevin Rudd says.

"I think for first home buyers those grants can help," Mr Rudd told journalists in Canberra.

"We said prior to the election we would retain that."

The government's first-time savings accounts, in addition to the grants, would encourage a savings culture among young people, he said.

although this thread isn't real current ...  :D ... i just wanted to comment on the subject since i've noticed it ...  :o ... in general people (including the government) don't know how to manage their money so what makes them think that by giving them more, they'll know how to manage that? the complete process doesn't make any sense to me.   :-?

Linda ... whatcom county and real estate

Hi, Linda, and welcome to OZ.

I couldn't agree more, I am one who has never thought the first home owner's grant was wise.

I would support a first home builders grant, to offset some of the tax on materials, but only because the building industry, is crucial to the economy, and keeping it healthy has flow on effects for the whole community.