Young homebuyers are being hit by exorbitant state stamp duty charges that nullify the benefits of the first homeowners' grant, federal Community Services Minister Nigel Scullion says.
Senator Scullion on Monday blamed the states for exacerbating housing stress, after Labor's Ursula Stephens asked in parliament about interest rate rises which she said were contributing to 90 home repossessions in NSW each week.
About 6,000 families in NSW have had their houses repossessed since 2006, Senator Stephens said.
Senator Scullion said the states were not doing enough to ease pressure on homebuyers, with high stamp duty charges making the federal government's $7,000 first homebuyers' grant redundant.
"Stamp duty on a property in NSW, on a $300,000 house, is $8,990," he told parliament.
"So for those people looking to own their first home, of course, that is going to be a very dire situation indeed.
"When you look at the circumstances of where the commonwealth government does want to provide relief for first-home buyers particularly - that's a little bit over $7,000 - it's immediately gobbled up by the states who have a love affair with money rather than with their constituents."
There has been speculation the federal government may announce an increase in the first homebuyers' grant ahead of the election.
Senator Scullion said the federal government had engaged the private sector as part of an overhaul of public housing, designed to increase the stock of accommodation for low-income families.
He defended the Howard government's record on interest rates, saying they had ranged from between six per cent to 8.3 per cent when they had been as high as 17 per cent under the previous Labor government.
There have been five consecutive interest rate rises since the 2004 election.
