Australia has some additional dimensions, because it is not the “average” country in this episode. As a commodity producer, our terms of trade have risen. Whereas for a net commodity importer a rise in commodity prices acts like a tax paid to foreigners, Australian entities are net receivers of such payments. That impact is expansionary.
Just how expansionary depends on the response of the recipients of those income flows, who include local and foreign shareholders, employees and governments. But other things equal, aggregate demand will, compared with the “average” case, be stronger, and it is more likely that there will be a problem of inflation in the non-traded sector.