Victorian premier Daniel Andrews says he is hoping to address the issue of housing affordability head-on.
He has announced first-home buyers in the state buying houses for under $600,000 will not have to pay stamp duty from July.
The Victorian government says the move is likely to help around 25,000 people get into the housing market.
House prices have been soaring in major capital cities around Australia, with Sydney and Melbourne recording the highest increases.
Data from the housing-analytics company CoreLogic shows the value of property sales in Sydney has skyrocketed more than 18 per cent in the last 12 months.
Melbourne's rise was 13 per cent.
Mr Andrews also announced a 1 per cent tax on vacant properties, hoping to address the number of investor properties without tenants.
Some estimates have suggested as many as 80,000 homes are sitting empty in Melbourne.
New South Wales premier Gladys Berejiklian has said housing affordability is the biggest issue in her state.
And now Federal Treasurer Scott Morrison says tackling house prices will be a focus in the upcoming May budget.
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