New Zealanders and other foreigners are using the First Home Owner Grant scheme to buy holiday homes in Australia, the Federal Government concedes.

In answer to Senate Estimates questions put to the Government by the Opposition, it was confirmed New Zealanders are entitled to assistance under the scheme.

“Applicants who have previously owned a home outside Australia will be eligible under the FHOS if their application is in relation to the applicant’s first principal place of residence in Australia,” a Treasury letter said.

And there are claims the Government’s stimulus package spending is heavily weighted towards Labor marginal seats.

Liberal Senator Scott Ryan claims apolitical data from the Parliamentary Library and the Australian Electoral Commission used to analyse the distribution of money from the stimulus shows it is overwhelmingly Labor seats that benefit.

Senator Ryan examined 537 projects worth $810 million announced in June. The analysis shows Labor marginal seats receive, on average, almost $1 million dollars more than Coalition seats.