Regional economic analysis is hampered by the lack of reliable and consistent indicators of change in overall economic activity at the regional level. This information paper makes a case for the adoption of taxable income as an indicator of economic activity in Australia's regions. It presents statistical analyses and case studies to demonstrate the superiority of taxable income over either population or employment as an indicator of regional economic activity. In doing so it provides a glimpse of the potential of this measure to facilitate spatial analysis of national and regional economic activity and events.