This seems like a very good incentive for people who are looking to buy as it offers the co-contribution as Rachie say's, the $5,000 is indexed annually, it also has advantageous tax treatment similar to Superannuation.
However it seems to be aimed at people not looking to buy for a least 4 years!
This is what you need to do:
■ Make personal contributions of at least $1,000 for each
of four financial years (not necessarily consecutive years)
before you can withdraw your money.
■ Contribute as little or as much as you like every year, up
to a maximum cap over the life of the account. The cap
is $75,000 for the 2008–09 financial year and will be indexed over time.
If you take it out without meeting this criteria than penalties and taxes apply. (Not sure exactly what they would be but probably equal to the co contributions and tax advantages you've already received).
It can also be rolled in to Super at any time without penalties, so it could be used as an effective retirement planning strategy for some people, (seek advice if you want to know how)
Not many providers offering them at the moment though, I have seen AMP and Commonwealth Bank on the list.