The Howard Government's fourth term took place during a period of exceptional economic growth and prosperity.
During the term over 855,000 new jobs were created, unemployment declined to just over four percent and inflation generally remained within the Reserve Bank of Australia's (RBA's) target range of 2–3 percent Due in part to changes made to the way in which the rate was calculated, creating the appearance of an improvement.
The Government also completed repaying the Commonwealth's debt and recorded surpluses in each of its budgets during the term.
Australia's strong economic performance was largely attributed to the reforms made by both the Hawke-Keating Government and Howard Government and the growth in the world economy over the same period.
Growth in Australia's productivity did slow during the Howard Government's fourth term, however, and many areas of Australia's infrastructure reached capacity and required reform.
The Howard Government's ability to drive these reforms was limited by the lack of a working relationship with many of the state and territory governments.

The RBA's use of monetary policy was a significant issue during the Government's fourth term.
A key element of the Government's campaign in the 2004 election was the argument that only a Coalition government could keep interest rates low.
As a result, the ALP was able to use the RBA's six interest rate increases over the term to criticise the Government.
The interest rate increases and strong growth in house prices during this period contributed to housing affordability reaching an all-time low.

Changes to fiscal policy introduced in the 2004–05 budget included a 'baby bonus', increased tax benefits for families with children, and lower income tax rates for all Australians.
The family benefits introduced by the Howard Government led to middle-income households becoming the largest single group of social welfare recipients.
The superannuation system was also changed in 2007 to allow most people to withdraw their superannuation tax-free after they reached the age of 60 and to increase incentives for semi-retired people to work part-time.
Once the Commonwealth debt was repaid, the Government used its financial surplus to establish a 'Future Fund' to pay its superannuation liabilities and a Higher Education Endowment Fund was established in the 2006–07 Budget.
The Government also negotiated and signed several free trade agreements between 2004 and 2007, including one with the United States which had been mostly negotiated during the third term.

On 15 September 2005, the Senate passed the Telstra (Transition to Full Private Ownership) Bill 2005.
The first sale one third sale had been in 1997, under the Telstra (Dilution of Public Ownership).

The Howard Government's 12th and final budget was brought down by Treasurer Costello in May 2007.
In his Budget address, Costello told Parliament that Australia had recorded the longest economic expansion in its history and had unemployment at a 30-year low:
Our economy is about 1½ times larger than it was back in 1996.
We have another 2 million Australians who have found jobs since then.
And average wages have increased 20 per cent in real terms.
In the decade before 1996 inflation averaged 5 per cent a year.
Since then inflation has halved, averaging the low and stable rate of 2½ per cent a year.
Ten years ago the Australian Government owed a net debt of $96 billion.
The Government was paying an interest bill of $8.5 billion a year.
Today we are debt free in net terms.
And our net interest payments are zero.
This is saving taxpayers $8.5 billion a year.
Back in 1996 the Budget was in deficit.
We were living beyond our means.
Today we are living within our means.
For the 10th time, I am outlining a Budget that will be in surplus.

In the 2007 Budget, Costello also announced a number of measures aimed at the education sector: including a Higher Education Endowment Fund, literacy and numeracy initiatives for schools, and measures to support vocational education and training and higher education.
The Higher Education
The Howard Government's fourth term took place during a period of exceptional economic growth and prosperity. During the term over 855,000 new jobs were created, unemployment declined to just over four percent and inflation generally remained within the Reserve Bank of Australia's (RBA's) target range of 2–3 percent Due in part to changes made to the way in which the rate was calculated, creating the appearance of an improvement. The Government also completed repaying the Commonwealth's debt and recorded surpluses in each of its budgets during the term. Australia's strong economic performance was largely attributed to the reforms made by both the Hawke-Keating Government and Howard Government and the growth in the world economy over the same period. Growth in Australia's productivity did slow during the Howard Government's fourth term, however, and many areas of Australia's infrastructure reached capacity and required reform. The Howard Government's ability to drive these reforms was limited by the lack of a working relationship with many of the state and territory governments.
The RBA's use of monetary policy was a significant issue during the Government's fourth term. A key element of the Government's campaign in the 2004 election was the argument that only a Coalition government could keep interest rates low. As a result, the ALP was able to use the RBA's six interest rate increases over the term to criticise the Government. The interest rate increases and strong growth in house prices during this period contributed to housing affordability reaching an all-time low.
Changes to fiscal policy introduced in the 2004–05 budget included a 'baby bonus', increased tax benefits for families with children, and lower income tax rates for all Australians. The family benefits introduced by the Howard Government led to middle-income households becoming the largest single group of social welfare recipients. The superannuation system was also changed in 2007 to allow most people to withdraw their superannuation tax-free after they reached the age of 60 and to increase incentives for semi-retired people to work part-time. Once the Commonwealth debt was repaid, the Government used its financial surplus to establish a 'Future Fund' to pay its superannuation liabilities and a Higher Education Endowment Fund was established in the 2006–07 Budget. The Government also negotiated and signed several free trade agreements between 2004 and 2007, including one with the United States which had been mostly negotiated during the third term.
On 15 September 2005, the Senate passed the Telstra (Transition to Full Private Ownership) Bill 2005. The first sale one third sale had been in 1997, under the Telstra (Dilution of Public Ownership).
The Howard Government's 12th and final budget was brought down by Treasurer Costello in May 2007. In his Budget address, Costello told Parliament that Australia had recorded the longest economic expansion in its history and had unemployment at a 30-year low:
Our economy is about 1½ times larger than it was back in 1996. We have another 2 million Australians who have found jobs since then. And average wages have increased 20 per cent in real terms. In the decade before 1996 inflation averaged 5 per cent a year. Since then inflation has halved, averaging the low and stable rate of 2½ per cent a year. Ten years ago the Australian Government owed a net debt of $96 billion. The Government was paying an interest bill of $8.5 billion a year. Today we are debt free in net terms. And our net interest payments are zero. This is saving taxpayers $8.5 billion a year. Back in 1996 the Budget was in deficit. We were living beyond our means. Today we are living within our means. For the 10th time, I am outlining a Budget that will be in surplus.
In the 2007 Budget, Costello also announced a number of measures aimed at the education sector: including a Higher Education Endowment Fund, literacy and numeracy initiatives for schools, and measures to support vocational education and training and higher education. The Higher Education 
Howard Government