Australia economy grows 0.4% in June quarter

Australia’s economy grew by 0.4 per cent in the June quarter, according to National Accounts from the Australian Bureau of Statistics (ABS). This growth rate was slightly higher than the 0.3 per cent predicted by economists. Treasurer Jim Chalmers described the figures as a “robust result” given current global uncertainties and international conflicts.

While real GDP rose, household consumption showed subdued spending across most categories, increasing by only 0.4 per cent. The ABS noted that economic growth remained subdued as households behaved cautiously, with imports supporting much of the growth. Notably, vehicle purchases rose by 10.3 per cent, driven by a transition toward electric vehicles.

Contrasting the Treasurer’s positive outlook on business activity, some accountants and tax specialists suggest that rising company registration numbers may not indicate a booming economy. They argue these figures often reflect business restructuring, changes to family trusts, or the creation of side hustles driven by cost-of-living pressures rather than genuine new commercial expansion. Additionally, some brokers report an increase in business owners seeking to sell due to declining incomes caused by inflation.