Treasurer Josh Frydenberg is confident the Australia economy will rebound strongly from its virus lockdown setbacks by the end of this year and into next 2022.
Backing his optimism was the sixth straight weekly rise in consumer confidence in data released on Tuesday and last week's report showing a strong rise in business sentiment.
"We are pretty optimistic and confident of a very strong rebound in the December quarter and then into 2022," Mr Frydenberg told an online Australian Chamber of Commerce and Industry conference.
"So while we will see a contraction in the September quarter, with the easing of restrictions we will see a strong bounce back."
The ANZ-Roy Morgan consumer confidence index - a pointer to future household spending - increased 1.3 per cent in the past week, buoyed by the reopening of Greater Sydney and the imminent easing of restrictions in Melbourne.
Confidence has risen seven per cent since early September and stands at its highest level since early July.
Confidence jumped 5.4 per cent in Melbourne, which is due to start easing restrictions on Friday and earlier than anticipated.
Mr Frydenberg said Queensland's plan to open borders in December was significant.
"That will give confidence to those tourism businesses and it will give confidence to the customers from the southern states who typically make their way north for a summer holiday," the treasurer said.
The minutes of the Reserve Bank of Australia's October 5 board meeting, released on Tuesday, also pointed to timely indicators of household spending and hiring intentions suggesting the recovery in activity would be well under way by the end of the year.
Its central scenario is that the economy will return to its pre-Delta path by the second half of 2022.
"Nonetheless, members acknowledged that the recovery was likely to be uneven across the economy and that uncertainty would be a feature of the outlook for some time yet," the minutes said.
Shadow treasurer Jim Chalmers agrees the recovery is likely to be patchy, telling the ACCI conference parts of the economy will be held back by supply chain pressures and skill shortages.
"That's why we want to see ongoing economic support which is tailored to the economy as it is, rather than the economy we want it to be," Dr Chalmers said.
The RBA minutes stuck to the script that the central bank won't lift the cash rate until inflation is sustainably within its two to three per cent target, a condition it does not expect to occur before 2024.
Australian Associated Press