The Government says scrapping the First Home Grant scheme is another example of tough decisions it has to make this Budget.

It has also announced $140 million in new funding for 1500 new social housing places.

Housing Minister Chris Bishop says everyone sympathises with first home buyers, but they have to focus on a more vulnerable group of people.

"We are doing the right thing, but I'm not pretending to you it's going to be a popular decision. But this is a Budget in which we're having to make tough decisions - because we were left with a massive mess by Labour."

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