Gross domestic product rose 1.1 per cent from the previous quarter, when it rose by an upwardly revised 0.7 per cent, the Australian Bureau of Statistics said on Wednesday.
Annual growth increased to 3.1 per cent from downardly-revised 2.9 per cent in the December quarter, beating economist's forecasts for a 2.8 per cent gain over the year.
Commonwealth Bank of Australia economist Gareth Aird said "GDP growth is running at an above trend pace and the unemployment rate has been declining.
"But wages growth is at its lowest level since the 1990s recession and consumer inflation has been falling. On the surface, these four outcomes occurring simultaneously is bizarre.
So far, so good," said Prime Minister Malcolm Turnbull, who seized on the figures to warn that without tax reform the strong economic growth couldn't be taken for granted.
"There is plenty of risk out there on the horizon. We are in an uncertain economic environment globally.
"Many opportunities, great opportunities but great challenges. You cannot succeed without a clear economic plan. Everything we have is encouraging companies to invest, to employ."
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