Wages appear to be at the top of the Reserve Bank's watch- list.

The solid rise puts some significant upside risk on our 0.8 percent GDP forecast.

Both Perth and Darwin have very strong gains which are continuing to be buoyed by the commodity price cycle.

This reinforces the role of business investment and exports as underpinning the recovering economy. Looking ahead, the oil price presents a clear negative for the consumer and we're likely to see only a moderate pace of growth being sustained.

Today's report is a sign of better domestic activity in the fourth quarter.