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Jobs and growth

Sticking to our national economic plan for jobs and growth in a stronger, new and more diversified economy

Please note: some Budget measures may be subject to the passage of legislation.

Australia’s economy is successfully transitioning

Despite an uncertain international environment the Australian economy is transitioning to broader-based growth

Australia is growing faster than all major advanced economies and the 2016-17 Budget lays the foundation to ensure this growth continues well into the future.

Australia grew faster than other major advanced economies through 2015

This chart compares Australia's GDP growth through the year to December 2015 to growth in the major advanced economies and the average growth rate in the OECD. With growth of three per cent, Australia is growing more strongly than the United Kingdom, the United States, the OECD, the euro area, Japan and Canada.

With the high levels of investment in Australia’s resources now winding down, Australia’s economy is transitioning to broader-based growth. Flexible interest rates, exchange rates and wages are adjusting to support the transition.

The resources sector continues to play an important role in the economy with strong and expanding commodity export growth.

Exports of services are also increasing, particularly tourism.

Growth is shifting to more employment-intensive service industries with around 300,000 jobs created in 2015, the largest number of jobs created since 2007.

Over the past year employment growth has been strong in the household and business services sectors, such as health and retail trade.

Almost 300,000 jobs were created last year

This chart shows growth in employment by industry for the 2015 calendar year. Employment increased in the household services, business services and goods related categories. Employment fell in construction, agriculture, mining and manufacturing.

Business conditions have been improving across the non–mining economy as the lower exchange rate improves the competitiveness of Australian businesses, assisted by our new export trade agreements. Historically low interest rates are also supporting businesses and households, with mortgage interest rates at their lowest since the late 1960s.

Lower petrol prices — which have fallen around 15 per cent over the past year — are also supporting businesses and households.

Securing growth in a highly competitive, volatile and uncertain global economy is no easy task.

That is why the Government is sticking to its National Economic Plan for Jobs and Growth.

A plan for jobs and growth

The Government is encouraging investment, facilitating innovation and providing vital infrastructure

The Government’s National Economic Plan for Jobs and Growth will facilitate the economy’s transition to broader–based growth over the next decade and beyond. The Government is ensuring that we have the right economic plan to respond to risks and harness exciting opportunities.

The Government is improving the tax system, providing better access to global markets through new export trade agreements, promoting competition, providing vital infrastructure, supporting innovation and entrepreneurship, encouraging high–tech jobs and helping young people get into work.

The Government’s National Economic Plan for Jobs and Growth

Diagram showing ‘our plan’ in the centre, with the elements being: a better tax system, more exports, competition and choice, infrastructure, innovation and science, high-tech defence jobs, youth employment and a path to budget balance.


The Government is keeping average full–time wage earners on a lower rate of tax for longer.

The Government will support small businesses to become larger businesses by backing them to invest in their growth by reducing their tax rate.

New export trade agreements and competition reforms will ensure Australia is able to adapt to a changing world and take advantage of the opportunities it provides.

The Government is investing over $50 billion in quality infrastructure, which will relieve passenger and freight congestion, improve safety and support growth.

The National Innovation and Science Agenda will facilitate innovative investment and collaboration between researchers and businesses across the country.

The Government is helping the transition into smart, high-value, export-focused industries. We will work to secure an advanced defence manufacturing industry here in Australia to drive new high–tech jobs in the decades to come.

Ensuring we have growth–friendly policies that put more Australians into employment is crucial to our nation’s ongoing success.

The Youth Employment Package will give vulnerable young people the skills they need and that employers want, delivering real work experience and real jobs.

A continued path to budget balance will ensure Australians are not burdened by increasing debt and are free to work, save and invest.

Building a stronger, new and more diversified economy

This map shows that infrastructure projects are being built around Australia. The $5 billion Northern Australia Infrastructure Facility is supporting infrastructure investment in Northern Australia. $400 million is being invested in the Midland Highway in Tasmania. $1.5 billion is being invested in the Victorian infrastructure package. $115 million is being invested in Western Sydney airport works. In Queensland, $200 million is being invested in upgrading the first stage of the Ipswich Motorway and $6.7 billion is being invested in Bruce Highway Safety Upgrades. In Western Australia, $490 million is being invested in the Forrestfield-Airport link and $261 million in section two of the Perth Freight link.