It rose 3.6 per cent to 101.4 in October from 97.9 in September.
That means the optimists now outnumber the pessimists.
Westpac chief economist Bill Evans says it’s happened for the first time since November last year and represents the highest level of the Index since October 2016.
“Consistent reports of an improving global economy may have been a factor behind this lift in confidence. It is also likely that concerns about rising interest rates associated with overheated housing markets have eased,” Mr Evans said.
He said ongoing improvements in the labour market have also boosted confidence.