Australia’s westernmost state excels in three key metrics, boasting low taxes, affordable energy prices, and robust wage growth. However, high median rental prices at $630 hinder Western Australia’s overall performance. In stark contrast, Victoria ranks last across three measures: highest taxes, state debt, and energy costs. It secures the second-to-last position in per capita economic growth, wage increases, productivity, and retail spending. Despite these challenges, Victoria leads in job growth and boasts the second-cheapest median rental costs at $565.
These rankings are derived from an Institute of Public Affairs report, which assesses states’ performances based on 10 economic indicators using data from the Bureau of Statistics and CoreLogic. Lachlan Clark, a research fellow at the institute, underscores the significance of Western Australia’s leading resources sector for both the state and the nation. He emphasizes that Victoria’s issues with debt, taxes, and energy prices make it an unfavorable business location.
South Australia emerges as Australia’s second-best performing state, leading in per capita economic growth, productivity growth, and business investment. However, it ranks last in wage growth and second to last in job growth. Tasmania claims the third spot, excelling in rental costs and retail turnover, and securing the second-best positions for wages growth, low tax, and state debts. As the country’s only Liberal-governed state, Tasmania lags behind in jobs growth, productivity, and business investment.
New South Wales (NSW) scores the lowest in retail turnover and rent but performs well in per capita economic growth, productivity, and energy costs. Queensland boasts the lowest state debt burden but experiences the lowest per capita economic growth.
Despite the typical focus of economic policy discussions at the federal level, Clark emphasizes that decisions made by state governments have tangible consequences for families and businesses. He stresses the urgency of making sound policy decisions at all levels of government, particularly during times of acute cost-of-living pressures.
IPA AUSTRALIAN STATE ECONOMIC SCORECARD:
- Western Australia – First: Wage growth, tax burden, energy costs
- South Australia – First: Per capita economic growth, productivity growth, business investment. Last: Wage growth
- Tasmania – First: Retail turnover, rental costs. Last: Jobs growth, productivity growth, business investment
- Queensland – First: Debt burden. Last: Per capita economic growth
- NSW – Last: Retail turnover, rental costs
- Victoria – First: Jobs growth. Last: Tax burden, debt burden, energy costs
