CommBank's 'State of the States' report revealed Tasmania has the best economy in Australia for the second quarter in a row.
Tasmania led the report on five out of eight economic indicators, including relative population growth, equipment investment, housing finance, dwelling starts, and retail trade.
There has been a reshuffling of the rankings since last quarter, with Victoria slipping to third from second overall.
Despite strict COVID lockdowns and a shutdown of retail and service businesses, Victoria still ranks first for economic growth, however.
It also ranks first on construction work done.
Buying a home or looking to refinance? The table below features home loans with some of the lowest variable interest rates on the market for owner occupiers.
Smart Booster Home Loan
- Discount variable for 1 year <=80% LVR
- No ongoing fees
- Unlimited redraw facility
Monthly repayments: $1,476
- Discount variable for 1 year
- No ongoing fees
- Unlimited redraw facility
Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. If products listed have an LVR <80%, they will be clearly identified in the product name along with the specific LVR. The product and rate must be clearly published on the Product Provider’s web site. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term.
Overall, the ACT ranks second; Victoria third; NSW and SA tied fourth; WA and Queensland tied sixth; and Northern Territory in last spot.
Queensland arguably has the most 'open' economy during the pandemic, reflected in its second overall ranking for retail spending, up 8.91% on decade-average levels.
However, CommBank's chief economist Craig James said that retail trade figures during the pandemic are to be taken with a grain of salt.
"Retail spending may be up sharply on a year ago, but from depressed levels," he said.
"Overall spending may still be well below 'normal'. And clearly some states such as Queensland and Western Australia traditionally have had faster economic growth rates due to historically faster population growth."
CommBank lists Queensland's weakness as relative economic growth.
The state also ranks second-worst in relative unemployment, behind NSW, and second-worst in equipment investment behind NT.
Queensland's unemployment sits at 7.7%, 26.3% above the decade average, while NSW's jobless rate is at its highest level in 22 years.
Last month, Queensland's Housing Minister Mick de Brenni cited 'economic strength' as reason for being the only state not to extend rental eviction moratoriums.
In a bright spot, despite housing market uneasiness, in seven of the states and territories, housing finance commitments are above decade averages, up from five in the previous quarter.
The outlier was the Northern Territory, with housing commitments 9.5% lower than its decade average.
Home building in Tasmania has also been strong, being the only state to record a positive result compared to the decade average.
CommBank cited population growth and lower home prices compared to the mainland as reasons for the buoyed 'dwelling starts'.
Tasmania was also tied first with South Australia for wage growth, with the wage price index up 2.4% in the June quarter.
CommBank's report also said the ACT is the only state or territory where annual new vehicle sales are above 'normal'.
The 'State of the States' reports compares states' eight economic indicators, compared to decade averages.
The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:
- The big four banks are: ANZ, CBA, NAB and Westpac
- The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Credit Union Australia, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
- The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
- If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and Savings.com.au
Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.
In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.
*Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may inﬂuence the cost of the loan.
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