Strong growth figures coupled with a coalition edging ahead in the polls have sent Labor scrambling to find new ways to attack the government midway through the election campaign.
Economic growth of 3.1 per cent over the year, largely driven by exports, beat economists' expectations.
The economy posted its strongest quarterly growth in four years, lifting the annual rate to 3.1 per cent and boosting Malcolm Turnbull's spirits.
So far, so good: Turnbull
"So far so good," Prime Minister Malcolm Turnbull told reporters in Brisbane on Wednesday.
"This confirms the direction we are leading the country in, in terms of our economic plan, but there is much more work to do."
The main growth came from mining exports and a rise in financial, insurance, accommodation, food, arts and recreation services which are in demand especially among China's booming middle class.
Economy 'struggling'
Shadow treasurer Chris Bowen said beneath the figures the economy was struggling with falling domestic demand and private investment.
Living standards, or nominal income, were on "the most sustained decline in our history".
"The transition could be going a whole lot better," he said.
"For Australians who are trying to get into the labour market ... aspiring for a better future for their children, Labor has plans to deal with these things."
The latest aggregate of polls has the Turnbull government holding on to power but losing 11 seats, while the prime minister's net satisfaction rating is improving.