The upcoming federal budget is a chance for the Turnbull government to reset its policy priorities.
Treasurer Scott Morrison has offered a glimpse at the government's economic direction.
He told Radio 2GB the budget will include a housing affordability package that will have an impact on both home buyers and renters.
"I'm as much concerned about someone who's on a low income struggling with their rent as I am with someone who I know wants to get into the home ownership market themselves. They're both important challenges for Australians."
The treasurer did not specify any potential changes.
But he has been vocal in criticising the National Housing Affordability Agreement.
That was a multi-billion dollar deal brokered by the Rudd government in 2009 that gives the states money to build cheaper housing.
Mr Morrison told Radio 2GB the deal, which was meant to see a 10 per cent reduction in the number of low income households in rental stress, has not been meeting its targets.
"Over 30 percent of Australians actually live in homes that are rented, and when people are finding it hard to get into the housing market, that puts a lot more pressure on the rental market. And one of the key failings, one of the key failings of that agreement I talked about before on the states - one of the things, one of the outcomes we wanted to get from that was a reduction in the number of people in low incomes in rental stress. Now that's gone up."
Stephen Koukoulas is an economist at the agency, Market Economics.
He says the biggest pressure on house prices in Australia is a lack of supply, and recommends the federal government continue paying for the states to build more afforable housing.
"Something that actually helps to see the supply of dwellings increase over time is something that's very very important. To the extent that the Commonwealth is assisting the state governments in building low-cost housing, I think it's a net benefit."
Meanwhile, one state government has come up with its own idea for tackling housing affordability.
The Victorian government has announced it will abolish stamp duty for first home buyers on properties valued up to $600,000.
Premier Daniel Andrews says that will make a big difference for those just starting out.
"This can represent anywhere between a $15,000 saving and up to about $25,000 in savings. That's enough to furnish the house. That could be a year's saving. It could be even more than that. It's a really simple, commonsense way in which we can support more young couples into the housing market."
But Stephen Koukoulas says Victoria has the wrong idea.
When you have a shortage of supply, he says, giving buyers a tax break will just add more heat to the market, and drive prices even higher.
"Policies that increase demand, be it a boosting to first-home buyers grants, be it sort of tax concessions, which will only entice more people into the auction market and be bidding up house prices is sort of the wrong thing at the wrong time. And in fact, it does very very little to help the people that it's designed to help. It's sort of a bit of a misguided policy that if you give first home buyers some money, a bigger cash handout, that they're going to be able to afford more. All it means is they're going to bid a higher price and the people selling the house will probably yield a higher return."
Malcolm Turnbull agrees that the problem is a shortage of housing stock.
But the prime minister concedes that stamp duty - which is a state government tax paid on property purchases - does have a "chilling effect" on investment.
"You need to free up zoning and planning to get more dwellings approved. You need to ensure that you have more dwellings zoned, particularly around transport infrastructure, you know railway stations and so forth. So it is really a supply-side challenge overwhelmingly. I know there are issues about tax and obviously stamp duty is a barrier to investment in housing, but the tax and stamp duty and other issues are very relevant, but the biggest issue is supply."
Treasurer Scott Morrison will deliver the 2017-18 budget in May.
