Australia's latest economic growth figures may be as good as it gets this year before picking up in 2016.
That's according to the Organisation for Economic Cooperation and Development in its latest economic outlook, forecasting nearly three per cent growth next year as momentum in consumption, non-mining investment and exports gathers pace.
It expects annual growth to be 2.3 per cent in 2015, the same as reported in Wednesday's national accounts for the year to March.
This will keep the unemployment rate above six per cent until next year.
It is also concerned about the continuing strength of the property market adding to the risk of a "sharp correction", resulting in uncertainties in household spending.
The report released in Paris on Wednesday warns that external risks remain prominent, saying if commodity prices head down further then revenue impacts will deepen and cutbacks in production could become "substantial".
As such, it advises the Reserve Bank to hold its interest rate "firepower" in reserve given the uncertainties about the outlook.
Fiscal policy should also continue to provide support, noting the May budget did not endeavour to make up for the larger-than-expected deficit results.
"This approach is appropriate given weakening revenues and macroeconomic outcomes in the wake of the commodity price falls," the Paris-based institution says.
The OECD calls for further tax reform, cuts to red tape and competition-boosting measures.
It said there should be less reliance on personal and corporate income taxes and increased use of the GST and the introduction of a land tax.
KEY OECD FORECASTS FOR AUSTRALIA
GDP
2014 (Actual) 2.7 per cent
2015 2.3
2016 2.9
CPI
2014 (Actual) 2.5 per cent
2015 1.6
2016 2.4
UNEMPLOYMENT
2014 (Actual) 6.1 per cent
2015 6.0
2016 5.8
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