The share market has reached a 17-month high, lifted by a broad-based rally in most sectors amid signs of progress on the US budget deadlock.
The All Ordinaries rose 0.5 per cent to close at 4,633 and the ASX 200 added the same amount to 4,618.
ANZ shares rose a half a per cent on the day it held its annual general meeting in Perth.
The bank's chairman warned shareholders that political uncertainty both in Australia and around the world pose the biggest risk to the outlook next year.
John Morschel described the global economic recovery as "frustratingly anaemic".
He also warned that Australia's economy was under pressure from the high dollar as mining investment slowed, with little evidence that other sectors can pick up the slack.
The other big banks were mixed; the Commonwealth and Westpac slipped back slightly, while NAB added 0.8 per cent.
Billabong saw the biggest fall on the ASX 200; the embattled surfwear company's and confirmed it had received another takeover offer - its third in as many months.
Billabong was forced to confirm that the offer of $1.10 per share, from a consortium led by a former executive, was still on the table, after details of the bid were leaked early this week.
The leak was a breach of one of the conditions of the deal.
Telstra rose just under 1 per cent $4.34, while the major mining shares continued their run of gains as the iron ore price remained strong.
Rio Tinto added 1.6 per cent to $65.71 and BHP Billiton rose 1.1 per cent to $37.06.
Spot gold dropped to $US1,675 an ounce, West Texas crude oil edged up to $US87.45 a barrel, while Tapis crude was relatively steady at just under $US115 a barrel.
Around 5pm (AEDT) the Australian dollar was down against the greenback.
It was buying 105.2 US cents, 79.4 euro cents, 64.6 British pence and 88.7 Japanese yen - an 11-month high.