Business confidence grows

Those "animal spirits" in the business world often sought by Reserve Bank governor Glenn Stevens appear to be slowly returning.

In a further sign that the economy is successfully transitioning to broader-based growth, annual credit growth among businesses stands close to its highest level since the 2008-09 global financial crisis.

Other figures on Thursday showing job vacancies at their highest in three-and-a-half years also confirms the positive trends in business surveys and labour force numbers.

The central bank's monthly credit figures showed business credit expanded by 0.7 per cent in February, lifting the annual rate to 6.5 per cent and just shy of the 6.7 per cent peak seen only briefly late last year.

"Annual growth is gradually rising which could indicate a greater willingness to borrow and invest by corporates," Commonwealth Bank of Australia senior economist Michael Workman says.

Job vacancies also rose by 3.1 per cent in the three months to February - the sixth straight quarterly gain - to be 13.4 per cent over the year.

Commonwealth Securities chief economist Craig James said the improving health of the jobs market should support retail spending and housing activity.

"But it also means that there are even fewer reasons for the Reserve Bank to even be thinking about cutting interest rates," Mr James said.

The Reserve Bank holds its monthly board meeting next Tuesday.

However, business is less chirpy about the Turnbull government's promised wide-ranging tax reform package, fearing it will be nothing more than tinkering at the edges.

Consultants BDO's annual tax reform survey attracted more than 500 respondents, double the number of respondents seen in 2015.

BDO national tax director Lance Cunningham said this was a clear sign that the business community still sees tax reform as an urgent priority even if the government does not.

"(Many) are fearful the federal budget will present only piecemeal measures and a vague commitment to look closer at tax reform after the next election," Mr Cunningham said.

Although the government shelved changes to the GST on the premise it would do little to lift economic growth, over 80 per cent of respondents believe reforming the impost is essential to any tax package.

Almost two-thirds of those surveyed said GST exemptions should be abolished.

"Reform of GST to allow the removal of inefficient state taxes have been identified as much more pressing than company tax rate cuts," Mr Cunningham said.

Treasurer Scott Morrison will hand down the tax package with his first budget on May 3.