Malcolm Turnbull has lauded Australia's strongest jobs growth since 2005.
A jobs boom in NSW and Queensland helped drive the unemployment rate to its equal lowest in six years, while the 339,000 jobs created in 2017-18 is the best annual figure since 2004-05.
The unemployment rate was unchanged at 5.4 per cent in June, according to the latest Australian Bureau of Statistics figures, with 50,900 net new jobs added in the month but more people seeking work.
"We are seeing a real rise in confidence and investment and in jobs growth across the country," Mr Turnbull said in Sydney on Thursday.
The prime minister who noted the improvement in Queensland and Tasmania, where the coalition is seeking to unseat Labor in two of five by-elections on July 28.
"What we are seeing is the consequence of an economic plan that encourages businesses to invest," he said.
The largest jobs increase was in NSW (up 27,300) and Queensland (up 14,800), while Victoria was the only state to suffer a fall in jobs (down 6600).
The jobless rate in Tasmania - which has faced tough economic times in recent months - was down 0.7 percentage points to 5.8 per cent.
Treasurer Scott Morrison said he was encouraged by the rising participation rate, which at 65.7 per cent was 0.1 percentage points short of the record.
The youth unemployment rate was the best financial year result since 1988/89, "the year Taylor Swift was born", he said.
"I reckon that would be something for Taylor Swift to sing about."
Labor spokesman Brendan O'Connor said there was another story to tell.
"We have a government and a prime minister - in his harbourside mansion - who is willing to see further cuts to real wages by supporting cuts to penalty rates ... we have exploitation in this country," he said.
NAB Group chief economist Alan Oster said while employment conditions were favourable, most businesses expect to see only a modest, if any, increase in wage pressure over the next six months.
After the by-elections the government is planning to again seek the Senate's support for cutting the corporate tax rate for all-sized businesses to 25 per cent.
Asked about the government's commitment to bringing on the tax cut laws in August, Mr Morrison said: "The plan is the plan and we still want to see it passed by the end of the 2018/19 financial year."
Labor's Jim Chalmers said the nation could not afford to give $17 billion to the big four banks and tax breaks to foreign multinationals.
"We need to reform the tax system, fix the tax system, to make it fairer and to give tax breaks to those who need and deserve them the most," Mr Chalmers said.
