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

Variable
More details
UNLIMITED REDRAWSSPECIAL OFFER
  • 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%
UNLIMITED REDRAWSSPECIAL 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%
Variable
More details
AN EASY DIGITAL APPLICATION
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
AN EASY DIGITAL APPLICATION

Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • 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
Variable
More details
NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.

Variable Home Loan (Principal and Interest)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services

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%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of May 29, 2022. 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. 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. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

Latest Articles

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 strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

Collections:

Be Savings smart.
Subscribe for free money newsletters.

By subscribing you agree
to the Savings Privacy Policy