Better days ahead

Australia is on the right track for more and better paying jobs

Australia’s transition away from the investment phase of the mining boom towards broader-based drivers of economic growth is well advanced.

Historically low interest rates, a lower exchange rate and a flexible jobs market are all helping to facilitate the economic turnaround.

Despite large falls in mining investment and commodity prices from record highs, the economy has generated solid jobs growth over the past few years.

Our open and flexible economy has handled this transition and global uncertainty remarkably well.

And there are better days ahead.

Growth in the Australian economy is expected to rebound to 2¾ per cent in 2017-18 and 3 per cent in 2018-19 as the detraction from mining investment eases and as growth in household consumption and non-mining business investment improves.

As the transition progresses, jobs are continuing to be created in the services and construction sectors.

We are also well placed to benefit from an improving outlook for global growth.

Resource exports will continue to support growth. Strong demand from Asia for Australia’s tourism and education services will also drive further rapid expansion in our services exports.

This Budget aims to provide the conditions for a smooth transition, building on the Government’s plan for more and better paying jobs.