The government is seeking to implement a cap on the value of properties that first home buyers can purchase.
Housing Minister Tanya Plibersek announced the changes on Saturday.
According to the announcement, the $7,000 grant for first home buyers would cut out for properties valued at more than $1 million in Queensland; $750,000 in NSW, Western Australia and the Northern Territory and $600,000 for FHB’s in Victoria.
But opposition housing spokesperson Scott Morrison said the proposed cap was unlikely to have a high material impact on FHBs.
“The introduction of caps of say $750,000 in Sydney...and $1 million in Queensland will have little impact on the number of grants issued,” he said.
More than 171,000 first home buyers entered the market between October 14 last year and the end of September 2009.