Latest ABS figures show that GDP, in seasonally adjusted volume terms, declined 1.2% in the March quarter 2011.
This is the largest quarterly fall in GDP since the March quarter 1991.
Flooding which began in late December 2010 combined with cyclones in both Queensland and Western Australian have had a significant impact on the March quarter activity.
Despite the fall in GDP volumes there was an increase of an increase of 0.3% in Real gross national income driven by an increase of 5.8% in the Terms of trade on the back of stronger commodity prices.