New data this week shows that the Government inaction on housing is continuing to bite as housing becomes even more unaffordable.
Core Logic data how shows that Sydney house prices have risen by 19 per cent over the last year, while Melbourne house prices have risen by 16%.
This means that house price rises have outstripped average pay increases for Australian workers by 9-fold in Sydney and 8-fold in Melbourne over the past year.
Its no wonder that family balance sheets are struggling.
RBA statistics now show that household debt to disposable income hitting close to 190 per cent at the end of 2016 - the most debt households have had to shoulder in the economys history, and up more than 20 percentage points since 2013.
And the Australian Institute of Company Directors has today joined a chorus of organisations in support of reform of negative gearing such as the OECD, the IMF, the Grattan Institute, and the RBA, because it has led to ineffective tax outcomes and, in part, distortions in the housing market.
The warnings continue to mount.
This is a Government that has consistently failed to act on advice and address areas of key risk in the economy.
It has been repeatedly warned about the major tax distortions in the economy owing to the effects of negative gearing and capital gains tax concessions.
This is on the back of a resurgent investor led boom that continue to receive the most generous tax concessions in the developed world.
Its no wonder that APRAs hand has been forced again to intervene on the back of heightened risk in the housing market by introducing a new round of macruprudential measures.
One of the Treasurers most important roles is to ensure that the Australian economy and particularly the financial system is stable over time and is not exposed to undue risk this is a task he is currently failing.