Treasurer Josh Frydenberg says it is now "more important than ever" for Australians to stick with the Coalition's economic plan, after growth slowed down in the dying months of 2018.
But he has stressed the federal government remains focused on improving wages, as Labor leader Bill Shorten has declared the upcoming election will be a "referendum on wages".
The economy grew by 0.2 per cent in seasonally adjusted terms in the three months to December and by 2.3 per cent in the year to December, according to the latest national accounts released by the Australian Bureau of Statistics on Wednesday.
The figures have failed to meet the expectations of both economists and the central bank.
The drought affecting eastern states, lower mining investment and a decline in housing construction all helped slow the pace of growth, Mr Frydenberg says.
Treasurer Josh Frydenberg has not ruled out more tax cuts for low and middle-income earners. Source: SBS
But the treasurer wants people to see the bright side too, with Australia's economy continuing to grow faster than any G7 nation but the United States.
"The Australian economy is in fundamentally good shape," Mr Frydenberg told reporters in Canberra.
Compensation of employees - which measures wages and salaries - was up by 0.9 per cent in the December quarter and 4.3 per cent in the year.
Mr Frydenberg said that shows wage growth is starting to pick up, with the annual figure above the five-year average of 3.4 per cent.
But he recognised there is more work to be done, reiterating the sentiment that wages will increase further as the job market tightens.
"Improving the income of wage and salary-earners does remain a core focus for the government," Mr Frydenberg said.
Australia's economic growth slowed to 0.2 per cent in the last quarter of 2018. Source: AAP
His comments come soon after Mr Shorten turned his focus to wages at a business event in Sydney.
"The next election will be a referendum on wages," he said.
"It will be a contest about who the economy should work for, in whose interests the system should serve."
Mr Frydenberg said Labor is lying, on its ability to increase people's incomes, with its "$200 billion of new taxes" to have broader ramifications for people's pay packets.
The latest national accounts may prompt economists to renew their prediction the central bank will be forced to cut the official cash rate at least once in 2019.
The RBA on Tuesday held at the rate at 1.5 per cent for the 31st consecutive month.
