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A family sleeping in their cars high on a hill. Rescue crews working at 3am from a dilapidated shed. A cancer patient huddled inside a sports club. Terrified people clinging to trees and roofs.

Those are some of the desperate scenes from Ballina, in northern NSW, which was evacuated as flood waters rose on Tuesday afternoon.

Ballina mayor Sharon Cadwallader was at the Cherry Street sports club evacuation centre as patients were moved from the hospital and others fled their homes overnight.

"People were bringing mattresses and bowls of soup. Everybody was getting fed and there was good morale," Ms Cadwallader told AAP on Wednesday.

"The CEO's office had a cancer patient in there, a very elderly lady - he gave her his office and the boardroom."

As water continued to rise, about 1000 evacuees were taken to shelter at nearby Xavier College.

Ms Cadwallader tried to keep spirits high, but was appalled by the conditions the local SES were enduring on Wednesday morning.

She said communication systems were down, so the crew could not make or receive calls.

"I'd call it a shed, you couldn't call it a command centre. I came away from there quite angry," she said.

"I've been trying to get the money together for an SES centre - a couple of million bucks - to build them something they can work out of. It's just a relocatable old house."

Despite the conditions, there are stories of numerous SES rescues, including of someone clinging to a tree and others who were stranded on roofs.

"There are hidden stories of courage and heroism that came out of the rescues by unshaven men getting by on a couple of hours' sleep," Ms Cadwallader said.

Jimmy Britton's family, including his two grandchildren, have been sheltering in their cars at the top of a hill in nearby Alstonville since leaving their homes on Tuesday afternoon, without food or a change of clothes.

Mr Britton said floodwater came gushing into his house, inundating his garage and filling his swimming pool with mud.

"We were seeing three-inch waves coming down and I'm saying, 'This is filling the place, it's coming in quick'," Mr Britton said.

"All of a sudden it seemed to surge in.

"It would start to go out and I'd say, 'God we've been saved, we've dodged a bullet'. Then 10 minutes later, it would just come in again."

Mr Britton said his family will wait at the town's Lumley Park, playing cards to occupy themselves until they can return to Ballina.

"I've been here for 22 years and it's never flooded. But this one's proved us all wrong, unfortunately," he said.

His family have been moved by small acts of kindness, like a barista who gave them free coffee and cakes.

"My wife and my daughter were in tears. The best comes out in people when things bad happen," he said.

© AAP 2022

Treasurer Josh Frydenberg says the latest national accounts show the enormous resilience of the Australian economy, but warned the floods on the east coast and the Ukrainian conflict will have an impact.

The national accounts showed the economy grew by a hefty 3.4 per cent in the December quarter, a steep recovery from the 1.9 per cent contraction in the September quarter due to the Delta strain lockdowns.

The size of the rebound matched that seen after the 2020 recession, which was the fastest pace for 46 years,

Annual growth now stands at 4.2 per cent.

"Despite the uncertainties in the global outlook and the ongoing impacts of the pandemic, the Australian economy is in a very strong position," Mr Frydenberg told reporters in Canberra.

He said the floods in Australia and the war in the Ukraine are evolving situations but they will have an impact on the economy.

Mr Frydenberg said there will be a very big clean-up and support payments because of the floods in Queensland and NSW, while the tensions in eastern Europe has led to rising global oil prices, resulting in higher petrol prices in Australia.

"But today's numbers do underline the overall strength of our economy and our ability to withstand these shocks," the treasurer said.

The Australian Bureau of Statistics said domestic demand drove the growth this December quarter, with high levels of household spending, particularly in the states that emerged from COVID-19 lockdowns.

Household spending in NSW, Victoria and the ACT rose 9.6 per cent, while the rest of Australia rose 1.6 per cent.

"How households react to rising inflation and interest rates will be critical to the role of the consumer as the economic engine," EY chief economist Jo Masters said.

"A strong labour market and high job security should provide some confidence against some of the other factors on consumers' minds."

The rise in household consumption expenditure was partly offset by a 1.4 per cent fall in business investment, which was impacted by shortages of labour and construction materials.

Dwelling investment declined 2.2 per cent despite high levels of building approvals in recent quarters.

Net international trade detracted 0.2 percentage points from growth as exports of mining commodities and travel services fell, which was partly offset by increases in rural goods exports.

Reserve Bank of Australia governor Philip Lowe said the economy has subsequently proved resilient in the face of the Omicron variant, but warned the war in Ukraine is a new major source of uncertainty.

After leaving the cash rate unchanged at a record low 0.1 per cent at Tuesday's monthly board meeting, Dr Lowe said there were uncertainties about how persistent the pick-up in inflation will be, given recent developments in global energy markets and ongoing supply-side problems.

Economists expect the RBA will lift the cash rate later this year, but the timing of the first move is finely balanced.

The RBA expects the unemployment rate to fall below four per cent by the end of this year, while underlying inflation is projected to move above the two-to-three per cent target band and stay elevated.

Cost of living pressures are already being felt across the country with record petrol prices biting into household budgets.

The latest National Australia Bank wellbeing survey shows one-in-five Australians have missed a bill or loan payment in the past three months, while 75 per cent are trying to save but are challenged by debt repayments, bills and everyday spending.

More than 40 per cent of adults reported a decline in their savings in the past three months.

© AAP 2022

Treasurer Josh Frydenberg says the latest national accounts show the enormous resilience of the Australian economy, but warned that floods on the east coast and the Ukrainian conflict will have an impact.

The national accounts showed the economy grew by a hefty 3.4 per cent in the December quarter, a steep recovery from the 1.9 per cent contraction in the September quarter due to the Delta strain lockdowns.

The size of the rebound matched that seen after the 2020 recession, which was the fastest pace for 46 years.

Annual growth now stands at 4.2 per cent.

"Despite the uncertainties in the global outlook and the ongoing impacts of the pandemic, the Australian economy is in a very strong position," Mr Frydenberg told reporters in Canberra.

Shadow treasurer Jim Chalmers welcomed the recovery but said what matters most to working families is the inflation pressure they are now facing.

"Skyrocketing costs of living and falling real wages shouldn't be the thanks Australians get for the sacrifices they made during the pandemic," Dr Chalmers said.

Mr Frydenberg warned there will be a big clean-up bill and support payments for the floods in Queensland and NSW, while the tensions in eastern Europe have led to rising global oil costs, resulting in higher petrol prices in Australia.

"But today's numbers do underline the overall strength of our economy and our ability to withstand these shocks," the treasurer said.

Business Council of Australia chief executive Jennifer Westacott said while the national accounts were "great news", the March 29 budget provides the opportunity to lock in this positive result.

"We have to have our focus on the next 10 years, not just the next 12 months," she said.

The Australian Bureau of Statistics said domestic demand drove the growth this December quarter, with high levels of household spending, particularly in the states that emerged from COVID-19 lockdowns.

Household spending in NSW, Victoria and the ACT rose 9.6 per cent, while the rest of Australia rose 1.6 per cent.

The rise in household consumption expenditure was partly offset by a 1.4 per cent fall in business investment, which was impacted by shortages of labour and construction materials.

Dwelling investment declined 2.2 per cent despite high levels of building approvals in recent quarters.

Net international trade detracted 0.2 percentage points from growth as exports of mining commodities and travel services fell, which was partly offset by increases in rural goods exports.

Reserve Bank of Australia governor Philip Lowe said the economy has proved resilient in the face of the Omicron variant, but warned the war in Ukraine is a major source of uncertainty.

Dr Lowe said after Tuesday's board meeting there were uncertainties about how persistent the pick-up in inflation will be, given recent developments in global energy markets and ongoing supply-side problems.

AMP Capital senior economist Diana Mousina noted the December quarter growth result was not as large as the 4.2 per cent rate the RBA had forecast.

"It doesn't change our expectation that inflationary pressures will continue to build in coming months, forcing the RBA to start hiking interest rates from August," she said.

Cost of living pressures are already being felt across the country with record petrol prices biting into household budgets.

The latest National Australia Bank wellbeing survey shows one-in-five Australians have missed a bill or loan payment in the past three months, while 75 per cent are trying to save but are challenged by debt repayments, bills and everyday spending.

More than 40 per cent of adults reported a decline in their savings in the past three months.

© AAP 2022