What have they missed in their thinking and what do you as ordinary people need to know about this?
It is called the MARKET. Even Stalin who was able to kill millions to get his way stumbled. The Soviet Union subsidised bread for the poor. The consumption of bread went up dramatically. The pig farmers found it was cheaper to feed their pigs bread rather than more expensive grain.
Thus if the first home owner can get their hands on an extra $30,000 they can then afford to pay that extra $30,000 for a new home and the prices thus go up by that extra $30,000.
So what about the levy on the big banks? There are four groups involved in a bank: employees, depositors, borrowers and shareholders. The employees will not take a salary cut. The other three will go elsewhere if they can get a better deal so the levy will be spread around all three. There is nowhere else that the money can come from. Remember that most of us are shareholders of the banks via our superannuation fund or the Future Fund. What the bank levy really is, is an indirect tax on the population like the GST. Hidden from direct view but still paid by ordinary Australians.
Speaking of markets, remember markets go up and then they go down. This applies to current interest rates and house prices. The first is likely to go up and the second to come down or at least stop going up for another ten years.