Tasmania rated Australia's best economy twice in a row

author-avatar By on October 26, 2020
Tasmania rated Australia's best economy twice in a row

Photo by Spencer Chow on Unsplash

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.

Lender
Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval

VariableMore details
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
VariableMore details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
VariableMore details
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
VariableMore details
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
VariableMore details
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^

Rates correct as of October 26, 2021. View disclaimer.

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. 


Disclaimers

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): Great Southern Bank, 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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author-avatar
Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison is passionate about breaking down complex financial topics for the everyday consumer.

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