The Prime Minister is promising to closely look at a plan by Aussie Home Loans Chief John Symond to offer tax breaks to first home buyers.
Soaring house prices and rising interest rates are making it almost impossible for many people to get into the housing market.
That's prompted Aussie Home Loans Chief John Symond to put a proposal to the Prime Minister that would offer people buying new homes up to $15,000 a year in tax rebates for five years, and then repay half the money when they're settled.
"Unfortunately, housing affordability for first home buyers has continued to deteriorate in recent years,” Mr Symond said in a statement.
“First home buyers are now priced out of the market and are facing accelerating rental payments, while the housing construction sector continues to suffer from low demand.”
“Both Federal and State Governments have to date only provided limited assistance and urgent action is required. The housing affordability crisis is a large and complex issue and if ignored the situation can only worsen”, he added.
After being briefed by Mr Symond, Mr Howard isn't committing to it yet.
But with the election looming, a massive budget surplus and housing affordability a major issue, both Labor and the Government are sure to be closely looking at the plan.