Australia’s housing system serves some well and fails other dismally. House prices in capital cities have reached prohibitive heights for those on, or below, average incomes. Recent projections suggest that the median house price in major Australian capital cities will exceed $1 million in the next decade. While homelessness is the most severe consequence of housing failure, Australia’s housing supply shortfall is seriously restraining productivity. The country’s policy and tax mix distorts investment decisions, is a barrier to workforce participation and mobility, contributes to house price inflation and exacerbates inequality and social exclusion. It cannot be denied that stable housing is essential to raise children, participate in paid work, develop community connections and to maintain health and wellbeing. Few would deny that Australia’s housing system is broken. Yet calls for reform have been met by political paralysis. Budget projections are demanding that poorly targeted and inefficient spending be curtailed. It is now an opportune time to examine Commonwealth/state relations, tax reform and growing concern about intergenerational equity, to overcome this paralysis.