https://oe.cd/australia
Growth slowed from 2022 to 2024 but is now normalising
Note: Data are seasonally adjusted. Pre-pandemic trend is the average of year-on-year growth between the fourth quarter of 2012 and the fourth quarter of 2019.
Source: OECD Analytical Database.
Consumption
Growth is projected to pick up, with low unemployment and broadly stable inflation
Source: December 2025 OECD Economic Outlook database.
Maintaining fiscal stability
Public finances are set to improve over the medium term
Federal government budget balance
% of GDP
Structural budget balance
Cyclical factors
Temporary fiscal measures
Underlying cash balance
Note: The approach separating the budgetary impact of cyclical factors from structural measures follows the methodology detailed in Treasury Working Paper 2013–01. Cyclical factors measure the estimated impact on the underlying cash balance from automatic stabilisers and cyclical movements in asset and commodity prices. Temporary fiscal measures comprise direct economic and health support measures initiated between the onset of the COVID-19 pandemic and the 2022-23 October Budget. Underspends in these direct economic and health support measures are not captured in the derivation of the structural budget balance, which may alter the structural budget balance estimate in those years.
2025-26.
Pension
Other
Revitalising competition
Productivity growth is held back by weakening competitive pressures
Note: In the right-hand side panel, firm entry is measured in % of total establishments, and job mobility (or job churn) refers to the share of employed people changing their employer or business over a 12-month period.
Source: OECD Analytical database; and Australian Bureau of Statistics.
Australia’s geographical location hinders competition and necessitates a very active approach to competition policy
Distance from world economic activity
Kilometres, 2024
Source: OECD calculations.
Australia’s remoteness calls for strong competition policies
Note: The industry concentration estimate is the sales-weighted average of the top 4 firms’ share of sales across ANZSIC 3-digit industry classes.
Source: Andrews, D., E. Dwyer and A. Triggs (2023), “The State of Competition in Australia”, e61 Research Note No. 9, e61 Institute.
The revitalised National Competition Policy will help return to the frontier of competition-friendly policies
Economy-wide Product Market Regulation indicator
Index scale 0 to 6 from most to least competition-friendly regulation
5 most competition-friendly countries
Source: OECD Product Market Regulation database.
Reducing entry barriers and regulatory fragmentation across states and territories would facilitate competition
Product Market Regulation indicator: Entry regulation component
Index scale 0 to 6 from most to least competition-friendly regulation
Source: OECD Product Market Regulation database.
Reducing regulatory restrictions on foreign direct investment would encourage foreign entry
Foreign direct investment regulatory restrictiveness
Index scale 0 to 1 from least to most restrictive, 2024
Note: The OECD Foreign Direct Investment Regulatory Restrictiveness Index captures four main types of restrictions: foreign equity limits, restrictions on key foreign personnel, screening and approval mechanisms, and ‘other restrictions’ faced by foreign investors, such as restrictions on the acquisition of land and real estate for business purposes. The information in the database is based on official legal sources.
Improving housing affordability
House prices have risen strongly over the past 30 years
Source: OECD Analytical house
Easing planning restrictions would help house-building respond to growing demand
Annual growth in the number of households and dwellings, %
Note: Year to June in each year.
Source: Australian Bureau of Statistics; OECD calculations.
Shifting from stamp duties to recurrent property taxes would increase the efficiency of the housing market
Note: The category “Others” includes estate, inheritance and gift taxes as well as other non-recurrent taxes on property. Source: OECD Revenue Statistics Database.
Addressing the climate transition
Despite progress in reducing emissions, further efforts will be needed to achieve net zero by 2050
Emissions paths
Carbon dioxide equivalent, million tonnes
Historical emissions
Projected emissions Targets
2035 baseline: 48% below 2005 levels
2035 target: 62-70% below 2005 levels
Net zero trajectory from 2035
Note: “Targets” refers to greenhouse gas emissions targets defined in the 2025 Australia’s Net Zero Plan. The targets represent a 43% greenhouse gas emissions reduction by 2030 relative to 2005, 62-70% by 2035 relative to 2005, and a climate neutrality goal by 2050, shown here as net zero emissions in 2050.
Source: Department of Climate Change, Energy, the Environment and Water.
Note: The Safeguard Mechanism, established in 2016, sets limits on emissions for large industrial emitters. Right-hand side panel excludes land use, land-use change and forestry.
Source: OECD Environment Statistics.
Gradually raising taxes on motor fuels would help lower transport emissions
Cumulative change in CO₂ emissions % changes, 2008-23
Overall
Note: Excludes land use, land-use change and forestry
Source: OECD Green Growth Indicators database.
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