Prime Minister Tony Abbott promised his second budget would lift confidence and now he can back it up with reality.
The ANZ-Roy Morgan consumer confidence gauge released a week after the government's second budget jumped 3.6 per cent, lifting it above its long-term average.
Mr Abbott said the budget was always going to be for jobs, small business and families.
"But above all else a budget for confidence. That seems to have been the response," Mr Abbott told reporters in Sydney on Tuesday.
Opinion polls have also swung in the government's favour after the coalition was savaged after its first budget a year ago.
Treasurer Joe Hockey is also encouraged by the confidence figures, although he conceded they bounce around from week to week.
"But it's a good trend, that's what we want," he told reporters on Adelaide.
Releasing the figures, ANZ chief economist Warren Hogan said the budget reaction was great news for the economy.
"This suggests to us that Australians believe the government has got the mix of medium-term fiscal consolidation and short-term support for the economy about right," he said.
The prime minister was swarmed by small business owners from the Chinese community at the Sydney event where he spruiked the budget as the "best ever" for the sector.
He was presented with a signed banner from the Sydney Young Chinese Business Association.
Its honorary president Christina Wu said the budget had made a large difference for her members.
"This budget is great for small business and great for the families," she said.
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