First home owner grant faces the axe in Victoria

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First home owner grant faces the axe in Victoria
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Victoria could become the first state to dump the first home owner grant amid warnings the payment is pushing people to Melbourne’s expanding fringe.

, the push to strip Victorian councillors of their planning powers will be bolstered with the tabling of the anti-corruption watchdog’s report this week into allegedly crooked land deals in Melbourne’s south-east.

Infrastructure Victoria chief executive Jonathan Spear said the first home owner grant had overwhelmingly flowed to growth areas where newly built homes were more likely to cost less than the $750,000 cap. He said using the money saved to bolster the existing shared equity scheme would more effectively help first home buyers, without pushing them into greenfield areas.

Mark and Natasha Constantine used the $10,000 government grant to buy a three-bedroom property in Frankston North in April.The young couple spent six months looking for a family home in which to raise their now 10-month-old daughter, Charlotte.Mark, 31, said while the first home owner grant had helped them afford a large enough home, he was open to moving towards a shared equity scheme.

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